Real Property Taxation

REAL PROPERTY TAXATION: INITIATIVE CONSTITUTIONAL AMENDMENT. Adds section 34 to article XIII. Provides for 50 percent reduction in homeowners real property tax rate over a two year period. Increases homeowners exemption to $40,000 for persons over age 61. Freezes homeowner assessments at existing levels until sale of property at which time property must be reassessed at sales price. Provides for renters income tax credit of $25.00 per year with increments of $25.00 a year thereafter to $75.00 maximum. Financial Impact: Would result in a loss of local property tax revenues in 1978-79 of $1 billion to $1.5 billion, increasing to a range of $4.0 billion to $4.5 billion in 1981-82. State costs would be reduced in 1978-79 by about $100 million. These savings would increase to approximately $250 million in the following year but would decline thereafter