This is another proposal by the Legislature to exempt some privileged persons from the automatic reassessment provision in Proposition 13, a constitutional limitation on property taxes approved by voters in 1978.
Under Proposition 13 (now Article XIIIA of the California Constitution), assessed property values generally are frozen at their 1975 levels; however, property is reassessed and (if the market value has increased) higher property taxes are imposed each time the property is ``purchased, newly constructed, or a change in ownership has occurred after the 1975 assessment.''
Proposition 13 has had the beneficial effect of holding down property taxes--particularly for persons who have owned their property since 1975. However, the automatic reassessment provision in Proposition 13 has resulted in new homeowners paying far more in property taxes than their neighbors whose property has the same value but was purchased earlier when property was less expensive.
In addition, this automatic reassessment provision has caused a gradual but massive SHIFT of the overall property tax burden from owners of commercial and industrial property (which is often leased but seldom sold) to owners (and renters) of residential property.
Instead of offering voters a constitutional amendment which would correct these inequities, the Legislature is proposing in this measure to retain the basic flaw but authorize itself to allow grandparents to give real property to grandchildren (when the parents are deceased) without triggering the reassessment of the property.
Think about it. The people who have to pay the most for property are further burdened by also having to pay the most in property taxes.
This measure would only increase the unfairness of our property tax system.
Under Proposition 193, a person who inherits property from a grandparent would receive the additional windfall of paying low property taxes based on the grandparent's old assessment.
Instead of passing another exemption to reassessment for the privileged few, voters should insist that the Legislature place on the ballot a comprehensive amendment to our property tax system that would make it fairer for everyone.
GARY B. WESLEY
Attorney at Law