California property taxes rising: Why? Erosion of Proposition 13 Protections: Recent court decisions and legislative actions have weakened the protections of Proposition 13, particularly regarding local special taxes. Two-Thirds Vote Requirement Circumvention: Special interest groups are circumventing the two-thirds vote requirement for local special taxes by using citizen initiatives, which only require a simple majority. This allows them to direct funds to themselves. Impact on Property Owners: Parcel taxes, which are paid only by property owners, can be easily passed because non-property owners can vote to tax property owners. This can drive property owners out of the area or state. Mansion Tax Example: The “mansion tax” in Los Angeles (Measure ULA) is a real estate transfer tax passed via citizen initiative, bypassing the two-thirds vote requirement. This tax impacts not just mansions but also apartment buildings and commercial developments. Transfer Taxes Prohibited by Prop 13: Transfer taxes were prohibited by Proposition 13, but loopholes allow150
