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Higher property taxes makes housing allocation more efficient as people not using the house, retired people in high cost areas, etc would be incentivized to eit
by babaganoosh89 9y ago
Higher property taxes makes housing allocation more efficient as people not using the house, retired people in high cost areas, etc would be incentivized to either sell or rent their house out.
- zapita 9y agoNote that repealing prop13 would probably not raise property taxes overall. It would spread them more fairly across all owners, instead of the current arrangement of newcomers subsidizing established owners.
- dragonwriter 9y ago> Note that repealing prop13 would probably not raise property taxes overall. A straight-up repeal of Prop 13 would repeal rate limits on property taxes as well as assessment increase limits (both are part of Prop 13) and probably lead to jurisdictions, over time, increasing property tax rates and overall property taxes. It would probably reduce increases in sales, income, and other taxes, which currently are used in place of property taxes because they have no Constitutional rate limits.
- zapita 9y agoThat's a good point, your comment led me to research a bit more, and I learned that prop13 did in fact caused local governments to rely more heavily on sales taxes. Ironically this has contributed to the perverse incentives against building housing inventory, since commercial zoning is more likely to generate sales tax and other business-related tax revenue.
- curun1r 9y agoNot necessarily. Prop 13 also gutted California's funding for schools. They lost 1/3 of their funding overnight when Prop 13 passed. One would hope that repealing Prop 13 would also undo at least some of that underfunding, considering California is 41st among states in CoL-adjusted per-pupil spending.
- zapita 9y agoI did not know about that. Do you have a reliable, unbiased resource to recommend where I could learn more?