As I’ve said before, the famous part of Proposition 13 – the part that protected existing homeowners from being gouged by their own rising home values – should be kept. Large cash taxes, when cash or liquid assets are not changing hands, are destabilizing and force the unnecessary sale of homes. For most people, their home is not a cash earning asset. But maybe there should be a large tax on home equity loans! That, at least, would discourage them.
Other parts of Proposition 13 – the commercial tax rates, for example, and the two thirds vote requirement – are quite negotiable, as far as I”m concerned.
Related: “Overturning of Prop. 13 sought in lawsuit” by Bob Egelko at SFGate.com