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Particularly in California -- it makes no sense for landlords to pay artificially low property taxes. Prop 13 should be reformed so you pay property taxes on th
by diebeforei485 6y ago
Particularly in California -- it makes no sense for landlords to pay artificially low property taxes. Prop 13 should be reformed so you pay property taxes on the market rate of the property if you're renting it out.
- thephyber 6y ago> it makes no sense for landlords to pay artificially low property taxes The core problem is Prop 13, not that Prop 13 doesn't exclude for-profit properties. There are a ton of property/owner classes that should absolutely not get the Prop 13 discount. Malcolm Gladwell did an episode on why golf courses (specifically member-owned courses) in California are massive misallocations due to Prop 13.
- novok 6y agoIt's not low when you first buy, even for years after. Rates can effectively start around %1.5 to %1.2 percent depending on the city.
- patmorgan23 6y agoThat's because entrenched property owners are paying artificially low taxes due to prop 13. Repealing it would equalize the tax burden.
- refurb 6y agoWhile I agree that property taxes could come down if Prop 13 was eliminated, I highly doubt that would ever happen. The gov't could never turn down a new pot of money.
- zepto 6y agoRepealing prop 13 would not reduce rates for new buyers. It would only make it harder for them to retain their properties as the taxes rise.