Is California really a low property tax state?

To hear progressives tell it, California’s property tax is way too low and needs to be increased to fund the critical needs of schools and local governments.  But the notion that Proposition 13 – enacted 40 years ago – has somehow “starved” local governments is nothing more than urban myth.  In virtually every year since 1978, the growth in property tax revenue has exceeded the combined growth in inflation and population.

While the consistent growth in property tax revenue is indisputable, that has not deterred Proposition 13’s detractors from arguing that, relative to other states, property owners in California aren’t paying their “fair share.”  Eschewing for the moment what constitutes “fair,” a part of the debate involves whether California is a high or low property tax state. And it is here that the saying “lies, damn lies and statistics” comes into full play. The reality is that there are many ways to measure tax burden and most can be manipulated to support some desired narrative.

Those who argue that California’s property tax burden is too high might be tempted to point out that California collects far more property taxes than any other state.  That is true, but it is also intellectually dishonest.  Our size and population is what generates the tax revenue and aggregate dollars collected simply do not reflect a fair measure of tax burden.

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