3 ms·
Hasn't Prop 13 made housing development a cost to cities? (i.e., once you sell a home, the property taxes don't cover the actual costs from the building?)
by someotheracct2 7y ago
Hasn't Prop 13 made housing development a cost to cities? (i.e., once you sell a home, the property taxes don't cover the actual costs from the building?)
- nwah1 7y agoCan't parse your statement very well, but certainly Prop 13 has caused a lot of rigidity in the housing market by incentivizing people to hold onto their titles as long as possible, and never sell. And it has starved cities of funds and encouraged idle speculation and blight, since there's little cost to sitting on prime real estate indefinitely, and waiting for it to appreciate. Taxes on buildings and construction are not conducive to general prosperity, but taxes on land are crucial to curbing speculation on scarce land. And incentivizing people to hold onto land indefinitely reduces dynamism.