RES-10811 Support For Proposition 13RESOLUTION NO. 10811
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF ORANGE EXPRESSING SUPPORT FOR
PROPOSITION 13.
WHEREAS, on June 6, 1978, Proposition 13, officially titled the "People's
Initiative to Limit Property Taxation," and popularly known as the "Jarvis -Gann
Initiative," was overwhelmingly approved by California's voters, reducing property tax
rates on homes, businesses and farms, and capping the rate of increase in the future; and
WHEREAS, prior to the adoption of Proposition 13, California's raging inflation had
sent property tax bills in California soaring so high that many families had to sell their homes
because they could not afford to pay their taxes; and
WHEREAS, prior to the adoption of Proposition 13, property tax assessments showed
wider divergences than assessment disparities under the current acquisition -value system; and
WHEREAS, with the approval of Proposition 13, real property values were adjusted to
a base value equal to the 1976 assessed value of that real property, thereby introducing an
objective standard upon which real property would be taxed and ending the previous subjective
standard for assessment that engendered the property tax assessment abuses thai occurred in
the 1960s and 1970s; and
WHEREAS, with the passage of Proposition 13, taxpayers, for the first time, were
provided a measure of certainty with respect to their property taxes; and
WHEREAS, following the passage of Proposition 13, the average homeowner has
saved tens of thousands of dollars in property tax payments, money that was able to be spent in
the economy to create jobs and foster economic development; and
WHEREAS, following the passage of Proposition 13, renters also benefitted as the
reduction in taxes reduced upward pressure on rents; and
WHEREAS, the volatility of income and sales tax revenue to the state and local
governments is a major flaw in California's tax system, while Proposition 13 has rendered
California's property taxes as a stable and predictable source of public revenue, even during
economic downturns, which has provided a major benefit to local governments throughout
California; and
WHEREAS, since the passage of Proposition 13, proposed alternatives to Proposition
13 would have had a variety of unwelcome effects, including substantial tax increases for low -
income and elderly homeowners; and
WHEREAS, voters intended Proposition 13 to protect all property owners, and they
had rejected previous attempts to impose higher taxes on small businesses, knowing that these
so- called "split roll" proposals would inflict irreparable harm on California's economy; and
WHEREAS, Proposition 13 has become a nationwide symbol for taxpa er revolt and
for citizens exercising control and power over their governance.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Orange, that in recognition of the positive impact Proposition 13 has had on the State of
California, we formally reaffirm our support for Proposition 13 and the benefit that it provides
to individual homeowners, renters, local governments and to the state's overall economy.
ADOPTED this 12 day of August, 2014
Teresa E. Smith, Mayor, City of Orange
ATTEST:
Mary E rp ,City Cl range
I, MARY E. MURPHY, City Clerk of the City of Orange, California, do hereby
certify that the foregoing Resolution was duly and regularly adopted by the City Council of
the City of Orange at a regular meeting thereof held on the 12 day of August, 2014 by the
following vote:
AYES:COUNCILMEMBERS:Alvarez, Whitaker, Smith, Murphy, Bilodeau
NOES:COUNCILMEMBERS:None
ABSENT:COUNCILMEMBERS:None
ABSTAIN:COUNCILMEMBERS:None
Mary E. City Clerk, Cit f Orange