The tax is not based on the current value nor on the value 30 years ago. It is based on a value which goes up 2% every year. The taxes go up every year but in a predictable way, it is damping function on the wild swings of the bubble/crash/repeat housing market.

So it is very easy to see how prop 13 was passed. The real estate tax is one the major yearly budget items for most families. Having it vary wildly and unpredictably year to year is not something most families [who don't earn tech bubble salaries] can handle.

The idea that people would get kicked out of their family homes due to increasing taxes without increasing someone's ability to pay them. Not to mention people on fixed income. Then add the fact that most people who voted already had their California home and were just voting for a tax cut for themselves.

What's the alternative? Maybe the discounted tax could be collected when the house is sold? Put in a limit where the total backlog of tax is capped by the amount the house has appreciated in value to avoid making selling the house impossible.