Proposition 13 Passes in California - Tax Limitation Movement Template

On June 6, 1978, California voters approved Proposition 13 with nearly 65% support, fundamentally reshaping American tax policy and creating a template for the nationwide anti-tax movement. The ballot measure capped local property taxes at 1% of assessed property value (down from an average of 2.67%) and limited annual assessed value increases to 2% or the inflation rate, whichever was lower.

Howard Jarvis and Paul Gann led the campaign after gathering 1,263,000 signatures for the ballot measure - the first time more than a million signatures had been solicited for any California initiative. The campaign raised $1.5 million, with just under half of contributions less than $50, presenting a grassroots image while receiving strategic support from conservative infrastructure including Coors funding and Richard Viguerie’s direct mail operations.

The measure passed despite opposition from virtually every major California institution including newspaper editorial boards, the California Chamber of Commerce, education groups, and labor organizations. Property taxes immediately dropped by 60%, forcing local governments to slash services and pursue alternative revenue sources like sales taxes and impact fees.

Proposition 13’s passage presaged a nationwide “taxpayer revolt” that contributed to Ronald Reagan’s 1980 presidential victory and established a template for anti-tax initiatives across the country. The initiative demonstrated how conservative infrastructure could mobilize voters against taxation while appearing to be a spontaneous grassroots movement, starving public services and creating fiscal constraints that would enable privatization and corporate capture of government functions.

The anti-tax framework pioneered by Proposition 13 became fundamental to conservative state capture strategy, limiting government capacity to regulate business while shifting tax burden from property owners (especially commercial property) to consumers through increased sales taxes.