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They have it backwards too > meant that new housing could cost cities more in services than it would bring in through taxes. New or resold houses reset tax to

by harikb 7y ago

They have it backwards too > meant that new housing could cost cities more in services than it would bring in through taxes. New or resold houses reset tax to current rate. Yes, there is this provision to transfer low prop tax to another house elsewhere in the state/county if you are above 55, but that is unrelated to Prop 13 Prop 13 is evil, it helps prop owning businesses mainly and makes it slightly more affordable for a bunch of folks to keep the house as a rental unit instead of selling. But in the end, state/schools lose the most.

jpollock 7y ago
Resale just resets to the current value, but then freezes it again. Cities have to plan for the value in perpetuity, which means it's at valuation at year zero, and then negative from then on. Which means the house is taxed appropriately 1 year in 13. The rest of the time? The city's underwater. https://www.valuepenguin.com/how-long-homeowners-stay-in-their-homes https://www.valuepenguin.com/how-long-homeowners-stay-in-the...
- omgwtfbyobbq 7y ago
  It doesn't freeze it again. The assessed value, and annual tax, still increases, albeit at a max of 2% per year, which does lag inflation over time. The biggest limitation of prop 13 is that it caps the tax rate at 1%.
JMTQp8lwXL 7y ago
We wouldn't need to pass these special school bonds if property tax rates reset annually, like they do in virtually every other state. We're simply redistributing who's responsible for paying the bills.
- rcpt 7y ago
  It's not quite every other state. Several have some form of limitations California is just unusually strict. https://www.lincolninst.edu/research-data/data-toolkits/significant-features-property-tax/access-property-tax-database/property-tax-limits?field_tl_limit_type_value%5B%5D=No+Limit https://www.lincolninst.edu/research-data/data-toolkits/sign... I believe we have the most powerful notion of direct democracy which is why our voting demographics get the biggest tax cuts
WillPostForFood 7y ago
Schools aren’t losing anything, they still are well funded, just by a high income tax instead of a high property tax.
- harikb 7y ago
  Historically property taxes funded schools in CA and many other states. Yes, some recent other prop-related taxes like Prop-30 have been funding general funds in the pretext of supporting education (exclusive education funding was only for the first two years.. suckers!). Either way, Propery tax linked to education is something US voters are likely to support. Richer neighborhoods get slightly richer schools even though majority of the money is evenly spread.

by harikb 7y ago

jpollock 7y ago

Resale just resets to the current value, but then freezes it again. Cities have to plan for the value in perpetuity, which means it's at valuation at year zero, and then negative from then on. Which means the house is taxed appropriately 1 year in 13. The rest of the time? The city's underwater. https://www.valuepenguin.com/how-long-homeowners-stay-in-their-homes https://www.valuepenguin.com/how-long-homeowners-stay-in-the...

omgwtfbyobbq 7y ago
It doesn't freeze it again. The assessed value, and annual tax, still increases, albeit at a max of 2% per year, which does lag inflation over time. The biggest limitation of prop 13 is that it caps the tax rate at 1%.

JMTQp8lwXL 7y ago

We wouldn't need to pass these special school bonds if property tax rates reset annually, like they do in virtually every other state. We're simply redistributing who's responsible for paying the bills.

rcpt 7y ago
It's not quite every other state. Several have some form of limitations California is just unusually strict. https://www.lincolninst.edu/research-data/data-toolkits/significant-features-property-tax/access-property-tax-database/property-tax-limits?field_tl_limit_type_value%5B%5D=No+Limit https://www.lincolninst.edu/research-data/data-toolkits/sign... I believe we have the most powerful notion of direct democracy which is why our voting demographics get the biggest tax cuts

WillPostForFood 7y ago

Schools aren’t losing anything, they still are well funded, just by a high income tax instead of a high property tax.

harikb 7y ago
Historically property taxes funded schools in CA and many other states. Yes, some recent other prop-related taxes like Prop-30 have been funding general funds in the pretext of supporting education (exclusive education funding was only for the first two years.. suckers!). Either way, Propery tax linked to education is something US voters are likely to support. Richer neighborhoods get slightly richer schools even though majority of the money is evenly spread.