No, it's not. Proposition 13 had zippo to do with capital gains you boob! (gratuitous abuse at no added cost) Rather, it limited the effects of reassessment of valuation of a property in a rising market to no more than 2% per year (as long as it is held by the same owner(s)), essentially limiting the effects of property tax increases. Proposition 13 is very much alive and well, as it's pretty much a "third rail" issue in California. However, one thing most people do not comprehend is that the actual result was a massive shift in property tax assessments from commercial property (which essentially NEVER change ownership - merely being shifted around through a variety of dodges) to residential property - which are reassessed every time they are sold. Thus, the property value (for tax purposes) of the residential property inventory is now much larger proportionally to that of the commercial property inventory. It was a wolf dressed in sheep's clothing, and most people are still too stupid to figure out they've been hoodwinked since 1978 into paying a much greater share of local taxes than businesses.