What was Proposition 13 and when was it enacted?

Proposition 13 is a significant piece of legislation in California history that was enacted in 1978. It aimed at reducing property taxes by limiting the amount that property taxes could increase each year. Specifically, Proposition 13 capped property taxes at 1% of the assessed value and restricted annual increases in assessed value to no more than 2% per year, unless the property changed ownership. This measure was a response to rising property taxes that many California residents found burdensome.

The importance of Proposition 13 lies in its long-lasting impact on California's tax policy, local government funding, and real estate markets. It sparked widespread debate and facilitated changes in the way local governments generate and manage revenue, often leading to challenges in funding public services due to reduced income from property taxes.

The other options incorrectly describe the nature and content of Proposition 13. It was specifically a property tax reduction measure rather than an increase or a measure concerning sales tax or water conservation.