What is the value of Proposition 13 to people buying their first home today?
A. The first benefit is that even the most recent homebuyers pay about 1/3 of the property taxes that they would have without Proposition 13. The initiative has simply kept the general level of property taxation lower and fairer. Without Proposition 13 many new buyers could not afford both their mortgage payments and their taxes. Proposition 13 also gives new homeowners long-term security by providing predictability in taxes. It establishes a uniform statewide property tax rate of 1%, with a 2% cap on future annual property tax increases. New buyers know exactly what their taxes will be next year, in five years, and in 30 years — reassuring information for those who plan to live in their homes when they retire.
