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The connection: without Prop 13, a decision to protect neighborhood character would have an explicit trade-off for residents-- their decision not to develop wou

The connection: without Prop 13, a decision to protect neighborhood character would have an explicit trade-off for residents-- their decision not to develop would lead to scarcity in developable land and thus higher land values, and thus higher property taxes. When this is decoupled, residents (who control all zoning decisions) have every incentive to approve every anti-housing measure, insofar as they're insulated from the costs.

URSpider94 10y ago
I see the author's point, but having lived in MA, which strives to keep assessed property values very accurate and very much in line with the market value, people there were just as rabid about keeping out new development. Ultimately, any increase in property tax is offset 100-fold by increases in home value, and both are probably eclipsed by the emotional desire to live in "a nice neighborhood" In short, while I would fully support the repeal of Prop 13, I don't think it would suddenly result in an about-face on zoning policy to limit home price appreciation.
- bufordsharkley 10y ago
  Interesting point. Out of curiosity, what's the property tax rate in these communities?
  - URSpider94 10y ago
    In Wellesley, MA, its 1.183% In Cambridge, MA, its .69 percent (down from .83 percent in 2015 !!!), with an exemption on the first $277,000 in value. These are communities with top-notch schools and amenities, and a state-wide income tax rate half that of California's.
  - URSpider94 10y ago
    To elaborate ... MA is the the original home of direct democracy. Towns in the state hold annual town meetings, with a committee of the whole coming together to vote on key issues. In addition, they have a fair number of ballot referenda, but not as many as CA. MA has its own "Prop 2 1/2" which caps real estate taxes at 2.5% of assessed value, and limits annual increases in the total assessment to 2.5%. Quite literally, the cities and towns are continuously re-assessing their property base, and literally re-set the tax rate on an annual basis to deliver the revenue that they need to run the town. Thus, you see Cambridge's rate plunging by 25% year over year, presumably as property values on high-dollar properties have boomed. This gives lie to the idea that politicians would just take the increased taxes from higher property values as a windfall. In actuality, the tax burden is redistributed as real estate wealth is created.
ericd 10y ago
In fact, they're not just insulated from the costs, but their house appreciates in value significantly, which means they can later sell it for much more than they would otherwise. The voters have voted themselves a huge windfall.

URSpider94 10y ago

I see the author's point, but having lived in MA, which strives to keep assessed property values very accurate and very much in line with the market value, people there were just as rabid about keeping out new development. Ultimately, any increase in property tax is offset 100-fold by increases in home value, and both are probably eclipsed by the emotional desire to live in "a nice neighborhood" In short, while I would fully support the repeal of Prop 13, I don't think it would suddenly result in an about-face on zoning policy to limit home price appreciation.

bufordsharkley 10y ago
Interesting point. Out of curiosity, what's the property tax rate in these communities?
- URSpider94 10y ago
  In Wellesley, MA, its 1.183% In Cambridge, MA, its .69 percent (down from .83 percent in 2015 !!!), with an exemption on the first $277,000 in value. These are communities with top-notch schools and amenities, and a state-wide income tax rate half that of California's.
- URSpider94 10y ago
  To elaborate ... MA is the the original home of direct democracy. Towns in the state hold annual town meetings, with a committee of the whole coming together to vote on key issues. In addition, they have a fair number of ballot referenda, but not as many as CA. MA has its own "Prop 2 1/2" which caps real estate taxes at 2.5% of assessed value, and limits annual increases in the total assessment to 2.5%. Quite literally, the cities and towns are continuously re-assessing their property base, and literally re-set the tax rate on an annual basis to deliver the revenue that they need to run the town. Thus, you see Cambridge's rate plunging by 25% year over year, presumably as property values on high-dollar properties have boomed. This gives lie to the idea that politicians would just take the increased taxes from higher property values as a windfall. In actuality, the tax burden is redistributed as real estate wealth is created.

ericd 10y ago

In fact, they're not just insulated from the costs, but their house appreciates in value significantly, which means they can later sell it for much more than they would otherwise. The voters have voted themselves a huge windfall.