Imposition of property taxes in California?

Question

After California became a U.S. state in 1850, land taxation was one of the factors that bankrupted the Californio ranchers. Apparently, it had not existed in the native, Spanish, nor Mexican periods. When were property taxes first assessed in California and what was the rate? Did each county or municipality introduce their own tax policy?

Answer 1

The original California Constitution (approved by voters 11 months before statehood) regarded any tangible property "taxable" (Author's note: Original assessment rates not readily found for this and other mentioned year periods in this answer--requires more intense scholarly-level research of historical documents. I suggest you contact State of California Library at Sacramento to best answer specific rates inquiries, thank you). In 1849, tax assessment rates were set by each jurisdiction, be it a city, county or school district.(Again, unaware of the specific assessment rates that "bankrupted" state ranchers. Other non-taxation factors might have helped bankrupt the ranchers, too!) By 1879 the Constitution was amended so that intangible property, household furnishings, livestock and business inventories were not subject to taxation. Then, though state government collected some property taxes to maintain essential operations, Counties were by far the major assessor of property taxes within California. Also in 1879, the California Constitution created a state Board of Equalization, to regulate county assessment practices, equalize assessment ratios, and assess properties of railroads. The State of California saw railroad property, from the 1870's into the mid 20th Century, as extremely lucrative, dependable sources to assess, obtain tax revenues. In 1933, state law was drastically changed. Afterwards, the ONLY property taxes the State itself could directly levy, collect, retain would be from privately owned railroad cars. Years later, the Proposition 13 Constitutional Amendment passed by popular vote in California in 1978. The Amendment set all governmental taxing rates at a maximum of 1%, then using 1975 rates as a baseline. Today, for 1000's of California local governments—compulsory schools, community colleges, cities, counties, special districts—revenue from property tax bills represents the foundation of their budgets.