It Begins: California Agrees on 'Compromise' to Change Proposition 13

It Begins: California Agrees on 'Compromise' to Change Proposition 13: On Tuesday, legislators, business groups and tax reformers reached a compromise to change part of California's Proposition 13, the legendary restriction on property taxes passed by referendum in 1978. At the time, Prop 13 heralded the beginning of an economic turnaround for California, as well as the beginning of the nationwide "Reagan Revolution." Democrats, however, have increasingly seen it as an obstacle to their spending goals.

The Sacramento Bee reports that the State Assembly Revenue and Taxation Committee voted to approve a change in the way Proposition 13 treats commercial property. The new provision would allow a commercial property's value to be reassessed when 90% of that property changes ownership in a three-year period. The new amendment would not include incremental changes such as the buying and selling of stock, however.

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