California Proposition 13, Seismic Retrofitting Reassessment Exemption Amendment (June 2010)

California Proposition 13
Election date June 8, 2010
Topic Taxes
Status a Approved
Type Constitutional amendment	Origin State legislature

California Proposition 13 was on the ballot as a legislatively referred constitutional amendment in California on June 8, 2010. It was approved.

A "yes" vote supported this constitutional amendment to exempt construction to seismically retrofit buildings from causing a reassessment of property tax value.

A "no" vote opposed this constitutional amendment to exempt construction to seismically retrofit buildings from causing a reassessment of property tax value.

Overview

In 1978, Californians approved a ballot initiative, also titled Proposition 13, which required that properties be taxed based on their purchase price. Proposition 13 required that properties be taxed at no more than 1 percent of their full cash value shown on the 1975-1976 assessment rolls and limited annual increases of assessed (taxable) value to the inflation rate or 2 percent, whichever was less. When a property is sold to new owners or newly constructed, however, the property is reassessed at 1 percent of its full cash value at the time of purchase and the limit on increases to assessed value resets.

The California Constitution excluded from classification as newly constructed the cost of re-constructing or improving a building to comply with any local ordinances that related to earthquake safety during the first 15 years following reconstruction. The California Constitution also authorized the state legislature to exclude from classification the construction or installation in existing buildings of certain seismic retrofitting improvements or improvements utilizing earthquake hazard mitigation technologies.

Proposition 13 of 2010 repealed the existing provisions related to exempting seismic retrofitting and instead created a single exclusion for all seismic retrofitting upgrades as defined by the legislature.

Election results

California Proposition 13
Result		Votes	Percentage
Yes		4,471,249	84.97%
No		790,899	15.03%

Results are officially certified.

Source

Text of measure

Ballot title

The ballot title for Proposition 13 was as follows:

“

Limits on Property Tax Assessment. Seismic Retrofitting of Existing Buildings. Legislative Constitutional Amendment.

”

Ballot summary

The ballot summary for this measure was:

“

• Provides that construction to seismically retrofit existing buildings will not trigger reassessment of property tax value, regardless of the type of building. • Sets a statewide standard for the types of seismic retrofit improvements exempt from reassessment. • Limits the exemption from reassessment to specific components of construction or reconstruction that qualify as seismic retrofit improvements, as defined by the Legislature.

”

Full Text

The full text of this measure is available here.

Fiscal impact statement

The following is the fiscal impact statement for the ballot initiative:

“

Minor reduction in local property tax revenues related to the assessment of earthquake upgrades.

”

Support

Supporters

• State Sen. Roy Ashburn (R-18)
• California Democratic Party

Arguments

The following supporting arguments were presented in the official voter guide:

“ Proposition 13 makes a necessary change to our state’s constitution in order to eliminate a dangerous and unfair disincentive for property owners to upgrade certain types of buildings in order to improve earthquake safety. This proposition promotes equity and fairness among taxpayers by eliminating the unequal treatment of different types of property which undergo seismic safety improvements. Currently, there exists an inequity in the State Constitution regarding the assessment of buildings which have undergone repairs to make them safer during earthquakes. Some properties, which have repairs made to increase the building’s safety in the case of an earthquake, are subject to reassessment and higher taxes while others are not. As a result, property owners who install seismic safety technologies are taxed differently depending on the type of building they improve. Only property owners with reinforced masonry structures receive an unlimited exclusion from reassessment. Those owners of un-reinforced masonry structures receive only a 15-year exclusion from reassessment. This exclusion creates a wrongful and dangerous disincentive for safety retrofits. What is especially concerning is that older un-reinforced masonry buildings are in the greatest need of retrofitting if they are to survive earthquakes or other natural disasters that frequently occur in California—particularly in the San Francisco Bay Area and Los Angeles County. Seismic retrofits should be made to ALL unsafe buildings, including un-reinforced masonry structures. The proposition that you are voting on corrects this unfair policy by providing equal treatment for all property owners who incorporate seismic safety improvements regardless of the type of building. It assures that any property having undergone a seismic safety retrofit will be exempt from property tax reassessment for that improvement. This measure is narrowly written and does not change the taxpayer protections afforded by the original Proposition 13 enacted in 1978. This proposition also eliminates a substantial workload for the State Board of Equalization and County Assessors. They will no longer be required to reassess the property to determine which seismic retrofits are covered and which are not covered under the old law. This decreases the workload and will save taxpayer dollars. Any loss in local property taxes from correcting this inequity in seismic safety retrofitting is minimal, which is why no organized opposition to this proposition exists. The language for this proposition passed the Legislature unanimously. For seismic safety for all Californians—North, South, East and West—please vote Yes on Proposition 13. ”

Opposition

Opponents

• California Nurses Association

Arguments

There were no arguments submitted to appear in the official voter guide.

Media editorials

Support

• The editorial board of the Contra Costa Times encouraged its readers to vote "yes" on Proposition 13, writing, "Proposition 13 on the June 8 ballot is a technical, but important correction to assessments of properties that are retrofitted to make them more resistant to earthquakes."

• The editorial board of the San Luis Obispo Tribune endorsed a "yes" vote, saying, "We wish the state could provide more financial incentives to make retrofitting less burdensome, but in this awful economy, that’s simply not possible. Proposition 13 would at least provide some long-term tax relief for property owners who are trying to do the right thing by making their buildings safer. We strongly urge a yes vote on the measure.

• The San Francisco Chronicle's editorial board was in favor, saying, "In California's divisive politics, it's a miracle to find a ballot measure that has broad support, clear benefits and no identifiable opposition. That's the case for state Proposition 13, a measure that encourages seismic upgrades to quake-prone buildings by canceling the risk of increased property taxes."

• The Los Angeles Times was in favor, saying, "With these thorny questions down the ballot, voters can feel some sense of relief that the first measure they'll be confronted with is straightforward and easy to support...It's as close as a California ballot measure comes to being a no-brainer."

• The Orange County Register was in favor, saying, "Recent earthquakes killing many people in Haiti and Chile – and that 7.2-magnitude quake in Baja on April 4 that also shook Orange County – are reminders of the need for strong buildings. It doesn't make sense to punish homeowners and businesses that want to improve their buildings' quality."

• The (Petaluma) Press Democrat: "State measure offers incentive to prepare for an earthquake."

• The Marin Independent-Journal: "If it will help encourage owners to make their properties safer, the exemption is worth it."

• The Lompoc Record: "We firmly believe property values should be evaluated on a regular basis, but if approving Proposition 13 increases the probability of getting buildings in better shape to withstand the forces of an earthquake, we are in favor of it."

Path to the ballot

See also: Amending the California Constitution

A two-thirds vote was needed in each chamber of the California State Legislature to refer the constitutional amendment to the ballot for voter consideration.

The constitutional amendment was approved unanimously in both the state Senate and state House.

See also

2010 measures

• 2010 ballot measures
• Taxes on the ballot
• Earthquakes on the ballot

California

• California ballot measures
• California ballot measure laws

News and analysis

• Ballot measure lawsuits
• Ballot measure readability
• Ballot measure polls

External links

• June 8, 2010, Primary Election Voter Guide