No on Prop. 58: House Taxes

In its effort to make more equitable the evident imperfections of Proposition 13, Proposition 58 does more harm than good. We recommend a “no” vote.

It does nothing to address the fundamental flaws of the 1976 property tax initiative. It will be costly in terms of additional losses in property tax revenues to local governments, including public schools. And it will make corrections of Proposition 13 all the more difficult by writing these special provisions into the constitution.

Under Proposition 58, the lower assessed valuations on property under the provisions of Proposition 13 would be transferable not only between spouses and from parents to disabled children, but also in all transfers of principal residences from parents to their children, and in transfers of other real property, including vacation homes and farms, up to a value of $1 million.

There is validity in allowing the lower assessed valuations to apply in special circumstances of hardship. There may be merit in providing for benefits to permit families to maintain control over family-operated farms. But the broad brush approach of Proposition 58 seems to exceed reasonable protections, and in so doing to exacerbate the already considerable inequities of Proposition 13. Until those issues can be thought through in a careful and more balanced fashion, and in the context of correcting the basic inequities of Proposition 13, these proposals should not be written into the constitution.