|‘Prop. 13 has had the unintended effect of favoring commercial property owners.’ said Antonio Villaraigosa, mayor of Los Angeles.|
’78 tax revolt still felt in California
Strict limits on levy reverberate through economy
California voters approved Proposition 13 to rein in property taxes that had doubled in 10 years. More than three decades later, that rebellion has mortgaged the state’s future, saddling it with the nation’s highest debt and lowest credit rating. The measure led to reductions that dropped per-student school spending from seventh to 29th nationally, prompted cities to pursue sprawling retail development to compensate for lost revenue, and pushed the state into budget gridlock.