The only things certain in life are death and taxes. Through technology, we may eventually cheat death, but taxes are here to stay.

What Proposition 8 giveth, Proposition 8 taketh away. California tax code section 51(e), enacted at the same time as Proposition 13, requires the tax assessor to annually adjust tax levies based on current full-market value. This was great when property values were falling and property tax bills fell dramatically. Now, property taxes are set to jump back up for homes bought during the bubble years.

Will a jump in property taxes cause more defaults, or will more equity owners sell at a loss because of cash-flow issues?

The CALIFORNIA TAX CODE SECTIONS 51(a) [Prop 13], and 51(e) [Prop 8], state the following:
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