[vonmoltke]

dragonwriter covered most of the details, but they key one he missed in Prop 13 is that every other homestead law I am aware of has an owner occupancy requirement that Prop 13 lacks. In Florida, which has a very generous homestead law, the ad valorem tax limits apply to the owner-occupied primary residence. You move and rent the place, your valuation spikes up to market rate. Own two houses? Pick one, because the other is getting taxed at market rate. It also does not apply to commercial property whatsoever.

Because of California's lenient qualifications, someone who bought that $30k house can move to North Carolina and collect massive rent checks without seeing their property taxes jump to reflect reality. The owners of apartment complexes have a vested interest in keeping their properties as they are, since a major renovation or addition would trigger a revaluation. Same for owners of office and retail space who aren't big enough to cut tax deals with the various levels of municipal government.

[kansface]

Those older than 55 can also apply their previous tax to any home they buy of equal or lesser value when they move.