That wouldn't change with a repeal of Prop 13. Prop 13 also applies to commercial property. Prop 13 has nothing to do with the dynamic of wanting more tax revenue without having to pay for the social services--police, schooling, etc.
Whether residential or commercial, density is far more efficient--more revenue per acre, fewer expenditures per capita. Not choosing higher density is budgetary non-sense. Cities reject higher density because of NIMBYism, and because the costs of sprawl are hidden and delayed, whereas the costs of density are immediate and obvious. If the costs of sprawl were as transparent as the costs of density, development would be much more dense.
