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Proposal for the amendment of Proposition 13: The Fair Property  Assessment Plan Daniel Villanueva Omar Ventura
Presentation Outline ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
The Genesis of Prop 13 ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Howard Jarvis  ,[object Object],[object Object],[object Object],[object Object],[object Object]
Proposition 13
Statistical Analyses Graph 1.1.  This Graph reveals a growing disparity between the tax burden placed on Californians through sales and use taxes, and personal income taxes; and that placed on corporate income taxes over the past 30 years.
Statistical Analyses Graph 1.2.  This graph reflects the ratio between personal income tax and corporate tax to adjust for inflation over time. The line of regression reveals that the disparity between personal income tax and corporate tax shares an overall positive correlation.
Statistical Analyses Graph 1.3.  This graph illustrates the ratio between sales tax and corporate tax to adjust for inflation over time. While erratic, sales tax revenues tend to be more volatile than personal income tax revenues. The regression line reveals an overall positive relationship of the index, indicating a disproportionately increasing burden on sales tax in comparison to corporate tax.
Tables ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Tables ,[object Object],[object Object],Table 1.5.  The post hoc test reveals that while there is significant difference between indices over time, there is no significant difference in the indices immediately before and after 1978.  Conclusions:  The Pearsons correlation and regression analyses reveal that there is a statistically significant relationship between sales tax and corporate tax; and income tax and corporate tax in California. While the one-way ANOVA and the residual post hoc tests did not reveal a significant change in indices immediately before and after proposition 13, there was a significant change in the indices over time. This may be due to insufficient data for the years prior; as well as the possibility that the changes that occurred due to proposition 13 took longer to manifest than the number of given years per group. Since property tax is categorized under personal income tax, the significant difference between the before proposition 13 years and the 1987-1994 bracket for personal income tax reflects the gradual increase of the property tax burden on new businesses and homeowners.
Aftermath of Prop 13: ,[object Object],[object Object],[object Object],[object Object],[object Object]
Aftermath of Prop 13: ,[object Object],[object Object]
What Can be Done? ,[object Object],[object Object],[object Object],[object Object],[object Object],The Fair Property Assessment Plan
Method ,[object Object],[object Object],[object Object]
Method ,[object Object],[object Object],[object Object]
Method Even though many voters believe that special interests have a lot (56%) or some (36%) control over the initiative process, 74 percent of adults and 79 percent of likely California voters believe that initiatives are important because they address significant public policy issues that the governor and state legislatures have failed to adequately address.   PPIC STATEWIDE SURVEY: SPECIAL SURVEY ON CALIFORNIANS AND THE INITIATIVE PROCESS (SEPTEMBER 12-19, 2005) 2,004 CALIFORNIA ADULT RESIDENTS: ENGLISH AND SPANISH (Margin of Error +/-2% at 95% confidence level for total sample)
What can be done? ,[object Object],[object Object],[object Object],[object Object],[object Object]
Current Efforts to Revise Proposition 13 ,[object Object],[object Object],[object Object],[object Object],[object Object]
Thank You

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The New Fair Property Assessment Plan

  • 1. Proposal for the amendment of Proposition 13: The Fair Property Assessment Plan Daniel Villanueva Omar Ventura
  • 2.
  • 3.
  • 4.
  • 6. Statistical Analyses Graph 1.1. This Graph reveals a growing disparity between the tax burden placed on Californians through sales and use taxes, and personal income taxes; and that placed on corporate income taxes over the past 30 years.
  • 7. Statistical Analyses Graph 1.2. This graph reflects the ratio between personal income tax and corporate tax to adjust for inflation over time. The line of regression reveals that the disparity between personal income tax and corporate tax shares an overall positive correlation.
  • 8. Statistical Analyses Graph 1.3. This graph illustrates the ratio between sales tax and corporate tax to adjust for inflation over time. While erratic, sales tax revenues tend to be more volatile than personal income tax revenues. The regression line reveals an overall positive relationship of the index, indicating a disproportionately increasing burden on sales tax in comparison to corporate tax.
  • 9.
  • 10.
  • 11.
  • 12.
  • 13.
  • 14.
  • 15.
  • 16. Method Even though many voters believe that special interests have a lot (56%) or some (36%) control over the initiative process, 74 percent of adults and 79 percent of likely California voters believe that initiatives are important because they address significant public policy issues that the governor and state legislatures have failed to adequately address. PPIC STATEWIDE SURVEY: SPECIAL SURVEY ON CALIFORNIANS AND THE INITIATIVE PROCESS (SEPTEMBER 12-19, 2005) 2,004 CALIFORNIA ADULT RESIDENTS: ENGLISH AND SPANISH (Margin of Error +/-2% at 95% confidence level for total sample)
  • 17.
  • 18.

Editor's Notes

  1. Throughout the 1960’s, several assessors scandals led to the California legislature to enact reform bill (AB 80) in 1966.to keep assessments at a uniform percentage of market value. In 1971 and ’76, the California state supreme court ruled on Serrano v. Priest, and declared California's property-tax-based school finance system unconstitutional. The legislature came up with bill (AB 65)(1977), which was designed to equalize school revenues by increasing state funds for poor communities. Many Tax paying Voters did not agree with the courts ruling because the higher property taxes would not go to local schools. during the 1970’s, real estate values escalated rapidly along with home assessments. Because of reform bill (AB 80), this resulted in large increases in assessed value for many taxpayers.
  2. Multivariate analysis revealed statistically significant increases in index before and after 1978
  3. Shows how volitile sales tax revenue is
  4. Compare and contrast people being taxed and their property.