Prop 13 was passed in 1978 as a means to thwart increasing property taxes that were a result of rising property values. It limited the tax to 1% of the assessed value of the property and limits the increase in assessed valuation to 2%. Proponents of Prop 13 claim that this is a fair tax since it is based upon acquisition value and not the ups and downs of the real estate market. Also they argue that purchasing a new property is an indirect approval of the property taxes that coincide with it, … [Read more...]