Prop 13 study says property tax benefits vary by race

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Prop 13 study says property tax benefits vary by race
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Another report published earlier this year focused on Oakland and found that richer, whiter neighborhoods benefited more from Prop. 13 tax breaks than poorer, ethnically diverse neighborhoods.

The new findings are part of a broader report arguing that Prop. 13 has led to racial inequities across California in wealth-building and school funding.

The study based its racial findings on 2019 census data for the entire state and survey responses in which individual owners reported their home values and the amounts they paid in property tax.Between 1980 and 2019, the share of the state’s housing wealth owned by Latinos doubled from 8% to 16%, researchers said in the new report. But their share of the population grew by 20 percentage points during that time.

For the most part, properties are not reassessed at their true values until they are sold —giving newer owners a higher tax burden than their more established neighbors.Proponents say Prop. 13 has helped some disadvantaged communities. Keeping taxable values artificially low is the best way to keep lower-income homeowners and homeowners of color from being priced out of their houses, said Jon Coupal, of the Howard Jarvis Taxpayers Association, the primary organization working to preserve Prop.

Black and Latino homeowners, on the other hand, are more likely to have become homeowners more recently and to own lower-value homes than white homeowners, the study said, leading to higher tax burdens.

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