The State - News from July 2, 1985

A bill to tighten a loophole in Proposition 13 was signed by Gov. George Deukmejian. AB13 by Assemblyman Mike Roos (D-Los Angeles) extends a moratorium on local property tax rate increases to pay for public pensions and other local debts approved by the voters. It was endorsed by Howard Jarvis, co-author of Proposition 13 approved in 1978. Jarvis personally visited Deukmejian to thank him for the signature. Proposition 13 limits property taxes to 1% of assessed valuation. But when passed, it also permitted higher rates for indebtedness previously approved by the voters. But the state Supreme Court held that the exemption covered a higher tax rate to pay for public employee pensions. Roos’ bill contradicted the Supreme Court decision, which the legislative analyst’s office said could cost the taxpayers $1 billion, or 11% more than they are now paying.