When the voters of California passed Proposition 13 in 1978, a strong message was delivered to political leaders throughout our state regarding California tax policy. The message was simple--``Get the Government Out of Our Pocketbooks!'' The voters in 1978 drew a line in the sand that government has never been able to cross, despite numerous efforts fought all the way up to the United States Supreme Court.
And, for over fifteen years, Proposition 13 remains the bedrock of our tax structure. Among other things, Proposition 13 requires a two-thirds vote of the Legislature to pass any new state taxes, and limits the ability of local governments to raise your taxes, while allowing for property to be transferred from parents to children without reassessment. These are important protections for California's families and businesses from huge, unfair tax increases.
The ballot proposition that is now before you for your vote is needed to correct the provision in current law that requires any property that is transferred from grandparents to their grandchildren to be reassessed at the new, higher tax rate--even in the unfortunate circumstances where both parents of those grandchildren are deceased.
You should know that under present law, grandparents can first transfer property to their immediate children, and a second transfer from the parents to the grandchildren can also be accomplished without reassessing the tax rates. However, this practice requires that the intervening generation (in this case, the parents) be alive at the time of such transfers of property.
Proposition 193 was authored to allow you to decide today whether to permit property to be transferred from grandparents to their own grandchildren only in cases where both parents are deceased, so that California families who are caught in this unfortunate situation are not punished due to mere oversight in the law. Quite simply, I believe the government should not double-penalize grandchildren through taxation who have already had the unfortunate loss of their parents.
It will be an uncommon family to whom this new tax provision will apply, and therefore this measure will have minimal revenue consequence on state or local governments. But remember, for those families to whom this new law will apply, this is indeed a fair and compassionate measure.
We urge you to support this important and equitable change in our Constitution, and help maintain the Spirit of Proposition 13 for all Californians!
DAVID KNOWLES
State Assemblyman
K. MAURICE JOHANNESSEN
State Senator
BILL HOGE
State Assemblyman