36
Stevens, J., dissenting
still maintain their homes. California has enacted special legislation to respond to their plight.5 Those concerns cannot provide an adequate justification for Proposition 13. A statewide, across-the-board tax windfall for all property owners and their descendants is no more a "rational" means for protecting this small subgroup than a blanket tax exemption for all taxpayers named Smith would be a rational means to protect a particular taxpayer named Smith who demonstrated difficulty paying her tax bill.
Even within densely populated Los Angeles County, residential property comprises less than half of the market value of the property tax roll. App. 45. It cannot be said that the legitimate state interest in preserving neighborhood character is "rationally furthered" by tax benefits for owners of commercial, industrial, vacant, and other nonresidential properties.6 It is just short of absurd to conclude that the legitimate state interest in protecting a relatively small
5 As pointed out in the Commission Report, California has addressed this specific problem with specific legislation. The State has established two programs: "Senior Citizens Property Tax Assistance. Provides refunds of up to ninety-six percent of property taxes to low income homeowners over age 62. . . . . .
"Senior Citizens Property Tax Postponement. Allows senior citizens with incomes under $20,000 to postpone all or part of the taxes on their homes until an ownership change occurs." Commission Report 23.
6 The Court's rationale for upholding Proposition 13 does not even arguably apply to vacant property. That, as the Court recognizes, Proposition 13 discourages changes of ownership means that the law creates an impediment to the transfer and development of such property no matter how socially desirable its improvement might be. It is equally plain that the competitive advantage enjoyed by the Squires who own commercial property is wholly unjustified. There is no rational state interest in providing those entrepreneurs with a special privilege that tends to discourage otherwise desirable transfers of income-producing property. In a free economy, the entry of new competitors should be encouraged, not arbitrarily hampered by unfavorable tax treatment.
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