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> What Californians need most is to end prop 13 How does Prop 13 inhibit new buildings? Isn’t it an incentive to buy? property taxes on new homes are capped w

• cameronfraser 7y ago
  From wikipedia: Proposition 13 alters the balance of the housing market because it provides disincentives for selling property, in favor of remaining at the current property and modifying or transferring to family members to avoid a new, higher property tax assessment.[36][37] Proposition 13 reduces property tax revenue for municipalities in California. They are forced to rely more on state funding and therefore may lose autonomy and control. The amount of taxes available to the municipality in any given year largely depends on the number of property transfers taking place. Yet since existing property owners have an incentive to remain in their property and not sell, there are fewer property transfers under this type of property tax system. California also has high rates of migrants from other countries and states,[38] which has contributed to more demand for housing, and it has low amounts of moderately priced housing due to the increased property tax liability after a sale.[citation needed] In effect, because the different tax treatment makes real estate more valuable to the current owner than to any potential buyer, selling it makes no economic sense.