&gt;Most people who buy their homes for long-term buy it to settle in their neighborhoods and have kids go to the same school, not speculate on price increases and profit from them.<p><i>IF</i> this is the true purpose of Proposition 13, then it would be written far differently. (Greater than 2%, no commercial real estate included, no passing on to children).  People are also allowed to sell their home for more than the assessed tax value, precisely because people speculate on price increases of their homes. If that wasn&#x27;t one of the primary reasons behind Proposition 13 then people would have been OK with only being able to sell their home at the assessed value.<p>Really though the point of Proposition 13 was to just pay less taxes, &quot;staying in your home&quot; doesn&#x27;t really come into play.  Defending it along those lines is deceptive, and propagates a false narrative.