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What happens to someone who lets the taxes build up but needs to sell (medical bills, say)? This screams of unintended consequences where the state taxes a wind
by RhysU 9y ago
What happens to someone who lets the taxes build up but needs to sell (medical bills, say)? This screams of unintended consequences where the state taxes a windfall from someone forced to sell.
- deleted 9y ago[deleted]
- tmh79 9y agounintented consequences... like what we're dealing with right now with the current california housing market...
- desdiv 9y agoTaking out an HELOC against the property might be one solution.
- JamesBarney 9y agoThe property taxes take precedence over loan collections, so no one will give you a HELOC when you have a bunch of back taxes.
- mjn 9y agoI don't see how it's a windfall on the part of the state, it's just collecting what's owed to them in arrears. It's not required that you defer the taxes. You could pay them up front. It's simply an option, that if you lack liquidity (because your assets are tied up in your house), you can defer payment until a "liquidity event", as they say in the startup world. There isn't any kind of right to both not pay property taxes and turn your property into liquid cash in your bank account. The purpose of the deferral option is that even if you have no liquid cash with which to pay property taxes, you can never be forced out of your home for that reason. That's the stated purpose of Prop 13, too, though perhaps not its real purpose.
- JamesBarney 9y agoIf the government didn't make them pay taxes it would be basically writing giant checks to home owners who own expensive houses, don't pay their tax bills, and rack up large amounts of medical bills. And the government would pay those people with money from renters, tax payers, and the insured.