Proposition 13 did not abolish property taxes, it only placed a cap on them based on the value of the property at the time of sale. Prop 13 didn't go far enough, in my opinion. The land speculation that lead to the bubble implosion in 08 was the result of monetary policy, and had nothing to do with property taxes, high or low. In fact, property taxes tended to be highest in the areas where land values due to speculation increased the most.
Because property taxes can increase without any regard whatsoever to one's circumstances or ability to pay, there are many (like those living on fixed incomes) who are forced to sell their property when they can no longer afford to pay the taxes and live in their home. Thus, property tax becomes a mechanism for sweeping aside the "unproductive" (unproductive to the state), and has definite appeal to those who rely on government revenue streams, and want them maximized, not threatened in any way.
Incidentally, the group opposing Measure 2 in North Dakota (all beneficiaries of property tax laws, including special exemptions) has outspent the proponents to the tune of hundreds of thousands versus thousands. Well over $1 Billion in mostly private property is exempt from paying any property taxes in just four counties in North Dakota. Those are economic advantages that were lobbied for through the ND Chamber of Commerce and other lobbyists, which special interests don't want to lose. The Tax Commissioner of North Dakota, Cory Fong, a staunch opponent of the Measure, has already projected that property taxes will increase by 7%+ every year - meaning that if M2 does not pass (and it may not) the property taxes paid, the rate of increase of which more than outstrips inflation, will more than double over the next decade.
This is actually deja vu for North Dakota, which has been through this before. They sought to abolish PERSONAL property taxes (on possessions, like jewelry and appliances) back in the early 60's. North Dakota University, teachers unions and others on the public doll did studies, and circulated propaganda saying that the sky would fall in North Dakota if that tax was not in place. Local governments would lose control, schools wouldn't be funded, essential government services would be cut to nothing, etc., and proposition for the repeal of the personal property tax was soundly defeated in '65. Emboldened by this defeat, local governments, with the help of the North Dakota Legislature, apparently felt that personal property taxes were somehow immune, or "safe", as personal property tax valuations increased and were abused even further. That made the tax ripe for abolishment and was finally repealed in 1969.
This may be the way it plays out in North Dakota, as polling shows that the majority of North Dakotans, while angry and screaming for property tax reform, may not be ready to eliminate the tax just yet. Sometimes you have to wait until sheep are sheered down past the skin with blood drawn before any change happens. And that will happen, even if Measure 2 is defeated today. Taxes on residential property just went up 7%, while property tax on agricultural land are increasing this year by a whopping 27% (commercial property by only 3%, go figure). Those are just the state-wide averages, which far outstrip the rate of inflation. Some farmers and ranchers are hopping mad, who received notices in the past two weeks that the property tax on their particular land is increasing anywhere from 70% to 200% in some cases.
