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This just turns property taxes into another form of longer-term secured debt for which taxpayers are ultimately on the hook if the owner defaults (which happene

• YokoZar 8y ago
  This is a secured debt, the state can collect it from the sale value. The tax is on property value, so if the house sells for too little the tax wasn't owed to begin with.
  • emeraldd 8y ago
    Isn't a property tax an on going thing? Unless I'm misunderstanding, this proposal could easily lead to a situation where a home is worth significantly less than the taxes due on it. All that has to happen is for the person who presently ones the house to live there long enough for the taxes and associated interest to accrue to that point. In effect, if you stay in a house long enough, this proposal results in the tax authority effectively owning the property even though you've paid your taxes the whole time.
    • YokoZar 8y ago
      Property taxes in California are at most 1% of the assessed value. If your property immediately doubled in value, you'd have to be in it 200 years before being underwater on it from taxes. If we let that debt accrue interest the timeline becomes much shorter, of course, but presumably the property appreciates at a related interest rate.