California’s Proposition 13, passed in 1978, was born from outrage. Property values were soaring, and so were the tax bills. Seniors on fixed incomes and working families faced losing their homes – not because they couldn’t afford their mortgage, but because they couldn’t afford the taxes on the “imaginary” wealth their homes supposedly represented.
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Prop 13 changed the game:
- Property tax rates were capped at 1% of a property’s assessed value.
- Assessments could only increase by a maximum of 2% per year, unless the property was sold or underwent major new construction.
- No more wild year-to-year jumps based on speculative market spikes.
The result? People could stay in their homes, knowing their tax bill would remain predictable and manageable.
BC’s Problem: The Speculative Squeeze
In British Columbia, we’re in the very crisis California faced in the late ’70s. Sky-high market valuations – driven by speculative buying, foreign investment, and scarcity – are pushing property assessments through the roof.
The twist? For many of us, this “value” is completely theoretical. You can’t buy groceries or pay the hydro bill with it. Yet the government taxes you as if you’ve just won the housing lottery. The reality is stark:
- Retirees and working families are house-rich and cash-poor.
- Communities are being hollowed out as long-term residents are forced to sell.
- Property taxes feel less like a civic duty and more like a slow-motion eviction notice.
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How a BC Version of Prop 13 Could Work
We could adapt California’s model while addressing our own housing market realities:
- Cap Annual Increases. Limit property tax assessment increases to a modest, fixed percentage per year (say 2%), regardless of market fluctuations.
- Protect Primary Residences. Apply this cap only to owner-occupied primary homes—no breaks for empty mansions or investment properties.
- Keep Seniors and Families in Place. Allow seniors, people with disabilities, and long-term residents to “lock in” their property tax rate at the year they qualify, keeping bills stable for life.
- Shift the Burden Off Homes and Onto Speculation. Make up lost revenue with targeted taxes on property flipping, corporate ownership, and speculative holding of vacant land.
- Transparency and Accountability. Every municipality should publish clear, accessible data showing where property tax revenues go and how much of the budget depends on speculative valuation increases.
The Bottom Line
If BC adopted a Prop 13-style reform, we’d keep neighborhoods intact, protect vulnerable homeowners, and stop treating people’s homes like ATM machines for municipal coffers.
California did it in 1978. They acted before an affordability crisis became irreversible. We’re already there.
The question now is: will BC follow their lead—or will we keep taxing people out of the very homes they worked their lives to keep?