1. Percentages and Political Science: Proposition 13 For Kids6TH grade lesson planTime: 60 minWhile 1965 may seem like a long time ago, it is important, particularly as Californians, tounderstand how the passage of certain laws in the past effect our lives today. The passage of AB80 was the pebble that got the snowball rolling down the road leading to proposition 13, with thesmall town of "California" laying in its destructive path years later. The story starts in the cityand county of San Francisco, with the county property tax assessor.1. In 1965, the average home in the US was valued around $21,000. If the average property inCalifornia is taxed at the rate of 9% of the propertys value per year, how much would theaverage homeowner pay in taxes per year?Take time before introducing this problem to explain the role of taxes in paying for publicservices, education, and infrastructure. Ask the students to name a few things paid for by taxes,as well as things that are taxed. Also make sure students understand how to convert percents todecimals and vice versa.2. In San Francisco at the time, the County assessor valued homes at $50 so that people wouldvote for him in every election. If these homes were taxed at the average rate for California in1965, how much would the average homeowner in San Francisco be paying in property taxes peryear in 1965? What is the difference between that and what the average Californian homeownerpaid? The Percent difference?Take time before this problem to discuss terminology and mechanics of civic structures. Makesure the students understand what Counties are, what a tax assessor is, how a public official iselected, and their role in California State government before and after AB 80. Also make surestudents are prepped for, and familiar with, rates over time, especially for later on in the lesson.3.To keep taxes low for homeowners in 1965, property assessors taxed most corporate properties

2. at around 49% of the propertys value. What would be the tax on a $100,000 corporate property?On a $1,000,000 property? On a $5,000,000 property?After this problem, discuss the benefits and drawbacks of taxes on corporations. Discussdifference in scale in terms of large and small businesses and their different roles and abilities inpolitics. Also, make sure students understand the zeros at the end shortcut for multiplication.4.Due to the relatively high taxes on corporate properties in 1965, some corporate propertyowners paid property assessors bribes to reduce the taxes they paid on their properties. Forexample, to get a $10,000 tax break, companies would pay off the assessor $5,000. What percentof the tax break is the bribe? What would the tax break be on a $8,000 bribe? How much wouldbe bribe be for a $12,000 tax break?Take time after these problems to also discuss corruption, cronyism, and oversight; howgoverning structures try to accommodate, deal with, and prevent it; and effects on laws, lawenforcement, and public perception. Also use these problems as a chance to introduce simplesingle-step algebra.5. When news that assessors were taking bribes from businesses for tax breaks got out, votersbecame concerned that assessors had too much power setting tax rates and evaluating propertyvalues every year. To solve this problem, the California legislature passed Assembly Bill 80,which set a flat tax rate for all properties, and limited property evaluations to only when theproperty was sold or switched hands. What problems do you think this bill solved? Whatproblems do you think this bill created? Take time to brainstorm with your classmates over whatthe intended and unintended effects of this bill may have been, and share them with the class.6. In 1966, the California State legislature passed AB 80, which mandated a flat tax of 25% ofthe propertys value for all properties statewide. If the average home was near the same value asit was in 1965: at $21,000, what would be the tax paid on the property the following year? Howmuch more would an average homeowner have to pay in property taxes from 1965 to 1966?What is the percent increase in property tax for the average homeowner between 1965 and 1966?What about the average homeowner in San Francisco?Take time after these problems to discuss the role of the legislature in the passage of bills. Taketime to illustrate the nature of bipartisanship in this political process as well as the role oflobbyists. Make sure prior to introducing the next set of problems that students understand the 3. concepts of: "the letter of the law", "spirit of the law," and how this effects enforcement andpublic perception of laws.7. Since AB 80 also applied to corporate properties, how much would a business with a $100,000property save in taxes from the previous year due to AB 80? What percent reduction is this?What would a $1,000,000 property save?8. If 50% of the properties in California were residential while the other 50% were commercial,how much money would the state make in taxes if the average home valued at $21,000 was taxesat 9% of its value, while the average commercial property valued at $100,000 was taxed at 49%of its value (assume that there are only 100 properties in California)? How much would the statemake if both homes and commercial properties were taxed at 25%? What is the difference? Is itpositive or negative? what is the percent of increase/decrease? What if 75% of the propertieswere residential, and 25% commercial?Take time after these problems to discuss how changes in tax revenue can effect the quality ofeducation and public services. Also explain how the effects o f AB 80 were felt differently byhomeowners in different parts of the state. Take time to discuss demographics and geographywithin politics, particularly in California.9. Several years later, in 1977, property values had increased dramatically from more peoplemoving to California. It was said that the taxes on some homes increased by 50-100% in thatyear alone. If a home in 1977 was valued at $44,200 at the beginning of the year (still beingtaxed at 25% of its value), what would the value be at the end of the year if the taxes on thehome increased by 50%? 100%? How much more, in dollars, would the owner of that home haveto pay in taxes? What would the percent tax increase be on a home that went from $48,000 to$54,200 in value? The increase in dollars?Take time after these problems to discuss the effects of the market and economy on politics andpolitical decisions people make. Also make sure that the students understand the differencebetween the tax rate, and the percent difference between the amounts taxed.10. Worried that some homeowners on fixed incomes would not be able to pay the taxes on theirhomes due to the rising property values, Californians passed proposition 13, which cappedproperty taxes from increasing by 1% per year. It also made it so that taxes could not beincreased unless the California legislature voted in a 2/3 majority. If there are 40 Senators and 80 4. assembly members, how many senators would be needed to pass a tax increase? How manyassembly members? What are the number of Democrats and Republicans in the Californialegislature now? How might this make problems in raising money for the state, assuming thatDemocrats and Republicans often vote against each other?Take this time to recap bipartisan politics, and the mechanics of the assembly and the senate.Ask students to reflect on the similarities between this housing crisis, and the recent sub-primemortgage lending crisis. Also make sure to prep the students for the next lesson, which will becomparing the rates of increase over time for commercial and residential properties after thepassage of prop 13.