4 ms·
If your home becomes much more valuable in 2018 to 2028 but then falls sharply in 2029 to 2034 and you become ill in 2035, who will pay the high tax then due?
by jzwinck 9y ago
If your home becomes much more valuable in 2018 to 2028 but then falls sharply in 2029 to 2034 and you become ill in 2035, who will pay the high tax then due?
What you propose is basically an additional mortgage via the state. This means more leverage for home owners and increased risk for the state. When a broad downturn comes, the state will be shoved briskly toward bankruptcy.
- ScottBurson 9y agoThere are various ways to set this up. What I would propose for California would have these properties: () The annual tax bill would be capped according to the Prop. 13 formula (annual increase limited to 2%). The difference between the tax bill and the tax due gets added to the lien balance. () The tax bill would increase at that rate even if the property value drops, until the lien balance is paid off. With these rules in place, it's actually pretty hard for the lien balance to get very large compared to the amount by which the property has appreciated. It would take a catastrophically sudden and severe drop in property values for that to happen.
- chillydawg 9y agoWhy cap it? Removing caps allows the market to properly price property with regard to taxes and will give the market stability. Caps are a distortion and will hurt some and benefit others.
- ScottBurson 9y agoThe modification to Prop. 13 that I am proposing will already be an extremely hard sell to California voters. Outright repeal is just not realistic.