Better Math for the Previous Article on Prop 13

In the previous article, I divided two percentage increases, which is incorrect math. I should be dividing the factors of the actual increases.

Between 1980 and 2006, property tax revenue increased from 6.4 to 43 billion, a factor of 6.7 times.

Over the same time period, population and inflation increased by a combined factor of 4.

Dividing 6.7 by 4, we see that property tax revenues, in spite of Prop 13, are up by 1.675X. Or 67%. Not surprising because property values are up by over 4X. Accounting for compounding, this is a healthy increase of 2% a year. Not surprising because property values are up by over 4X.

Whatever the effects of Prop 13 on fairness and the 2/3 requirement to raise other taxes, it has not resulting in any precipitous decline, let alone any decline, in property tax revenues.