To maintain a High-quality revenue system, state of California needs to maintain balanced range of sources by focusing on diversify revenue sources based on PIT, SUT and property tax revenues. For example, California applies property tax evenly to all property, no matter the type of ownership or use. In 1978, Prop. 13 made imposed restriction on how and when property is taxed, and capped the annual increase in value for non-reassessed properties at 2 percent, and 1percent taxation rate on the assessed value of a property. While this proposition provided protection for homeowners, renters and owners of agricultural lands, many big corporations and wealthy commercial property owners have used the law to avoid paying taxes on the actual value
