4 ms·
I have a basic question about prop 13. I though the point of not increasing property assessments is so that if rich people start bidding house prices around you
by tostitos1979 11y ago
I have a basic question about prop 13. I though the point of not increasing property assessments is so that if rich people start bidding house prices around you, your property taxes don't start to increase.
But as I dug into this, this doesn't make sense. The community has certain expenses. These get divided based on the value of the homes. If all homes double in price but the community expenses stay the same, it is irrelevant to have different assessment amounts on homes. I've heard the term "mil rate" and am not sure what that is, but is perhaps relevant. Any experts willing to clarify?
- jowiar 11y ago"Mil rate" the number of thousandths of the property value assessed in tax each year. i.e. 20 mils = 2% of the annual property value is taxed. The actual property tax owed is rate x assessments. https://en.m.wikipedia.org/wiki/Property_tax https://en.m.wikipedia.org/wiki/Property_tax
- tostitos1979 11y agoCool. That makes sense. Is there a reason they use 1000? Just convenience/convention? Also .. my question about prop 13 stands. Curious why increasing home values would cause an issue if municipal spending stays constant?
- wtbob 11y ago> Is there a reason they use 1000? Just convenience/convention? Because the mill(e) is the smallest unit of currency in the United States.