5 ms·

Not at all. Prop 13 only has effect when houses do NOT sell. Whenever a property changes hands, which is the only event that matters wrt demand, it is assessed

Not at all. Prop 13 only has effect when houses do NOT sell. Whenever a property changes hands, which is the only event that matters wrt demand, it is assessed at current market value. Prop 13 does have an effect but only in the manner in which it supresses sales.

klipt 9y ago
It limits property tax to 1% which I believe is pretty low compared to other coastal states. Coincidentally, California's public schools have fallen down the rankings since it passed.
- thaumasiotes 9y ago
  > Coincidentally, California's public schools have fallen down the rankings since it passed. Last we checked, per-student spending in public schools was negatively correlated with student achievement, so the hypothesis that funding levels are unrelated to performance would appear to be on pretty strong ground.
mulmen 9y ago
I'm not an economist but if property tax growth is effectively capped at 2% and teachers are paid out of property tax then any time housing price grows by more than 2% teachers are at a disadvantage to buy a house.
- jiveturkey 9y ago
  It’s not tho. It adjusts to market at each sale. In between sale it moves slower but then it readjusts.
  - mulmen 9y ago
    Does the new buyer pay the tax on appreciation in all the previous years? If not teachers are getting screwed twice. If a house is appraised at $10,000.00 in 2000 and doesn’t sell for 10 years it pays $2000.00 in taxes. Since teachers are paid out of this tax their salaries increases are capped at $2,000.00. If wages (and housing prices) in general went up at even 3% per year then teachers have to compete against other buyers with double the cash. The only way teachers aren’t getting screwed here is if every house sells every year. Again, I’m not an economist and these numbers are obviously a gross oversimplification.

5 ms·

Not at all. Prop 13 only has effect when houses do NOT sell. Whenever a property changes hands, which is the only event that matters wrt demand, it is assessed

by jiveturkey 9y ago

klipt 9y ago
It limits property tax to 1% which I believe is pretty low compared to other coastal states. Coincidentally, California's public schools have fallen down the rankings since it passed.
- thaumasiotes 9y ago
  > Coincidentally, California's public schools have fallen down the rankings since it passed. Last we checked, per-student spending in public schools was negatively correlated with student achievement, so the hypothesis that funding levels are unrelated to performance would appear to be on pretty strong ground.
mulmen 9y ago
I'm not an economist but if property tax growth is effectively capped at 2% and teachers are paid out of property tax then any time housing price grows by more than 2% teachers are at a disadvantage to buy a house.
- jiveturkey 9y ago
  It’s not tho. It adjusts to market at each sale. In between sale it moves slower but then it readjusts.
  - mulmen 9y ago
    Does the new buyer pay the tax on appreciation in all the previous years? If not teachers are getting screwed twice. If a house is appraised at $10,000.00 in 2000 and doesn’t sell for 10 years it pays $2000.00 in taxes. Since teachers are paid out of this tax their salaries increases are capped at $2,000.00. If wages (and housing prices) in general went up at even 3% per year then teachers have to compete against other buyers with double the cash. The only way teachers aren’t getting screwed here is if every house sells every year. Again, I’m not an economist and these numbers are obviously a gross oversimplification.