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Prop 13 is just a phenomenal transfer of wealth from the young and working class to the old and wealthy. Don’t kid yourself that it was ever about anything else
by denverkarma 8y ago
Prop 13 is just a phenomenal transfer of wealth from the young and working class to the old and wealthy. Don’t kid yourself that it was ever about anything else.
- ng12 8y agoWhat happens if you sell under Prop 13? Does the tax man come calling then?
- boulos 8y agoThe price resets for the new owner. Under Prop 13, the assessed value is X when you buy it and can only be increased by up to ~2% per year even if your home went up in value by much more. This chains together over long periods of time, so that if you bought a place 20 years ago you are now paying property tax on at most X * 1.02^20. If the new owner paid you 5X for the home, they now pay property tax against that value moving forward.
- ng12 8y agoIt seems to me that the seller should pay a hefty tax on that 5x value. Why should you get rich on appreciation that you didn't pay taxes on? I get the feeling the answer is more about greed and less about helping people stay in their homes.
- joejerryronnie 8y agoDo you feel the same way about social security?