Why was Proposition 13 problematic for the state of California? Why was Proposition 13 problematic for the state of California? It was found unconstitutional by the state and supreme court, but by the time that happened California had overhauled its financial and educational systems, and homeowners fearing greater taxes refused to have their properties assessed It increased the tax burden on middle-class citizens, which had a devasting effect on the economy and only increased inflation and related issues It reduced tax revenue, and less revenue meant less money going to schools and city services. In addition, because tax rates were tied to when you bought a property, people were paying different tax amounts for properties of the same value. It prevented undocumented immigrants from using city services, and also made it harder for immigrants to get driver's licenses and find employment in the state