4 ms·
Prop 13 has lots of consequences, but the issue with housing supply in California is mostly due to zoning. We could build way more by relaxing zoning code, we
by llsf 6y ago
Prop 13 has lots of consequences, but the issue with housing supply in California is mostly due to zoning.
We could build way more by relaxing zoning code, we do not need to repeal the almighty prop 13. It is like the argument I read yesterday in SF Chronicle, saying that to end death by overdose in the City, we need to first end poverty and racism... Sure, it would help, but we still can do better without fighting the near impossible issue first, we can build more even with prop 13.
If some people want to stay in their old (cheap property tax) unit, fine. It should not prevent newcomers to move in newly built homes.
"Need to move for a job? Want a smaller house after the kids have moved out? That comes with a tax penalty."... not a tax penalty, it is a reset, just like it should be if there would be no prop 13.
BTW, if your kids moved out, prop 13 allows you to move if you reached 55yo without any tax impact. So, you could get a smaller house.
If you need to move for a job, unless you had your current property for a long time (e.g. >5years), the property tax should be similar... unless maybe you are moving from the country side, to a coastal place, but those are different markets at the first place.
Not saying that prop 13 is good, but it is going to be very difficult to repeal (especially with the amendments they added over the years, it anchored it in the culture/business of the state) and in the meantime we need to build way more in California now! We need to review the zoning now and allow way more new constructions of everything (affordable, luxury, anything is good at this point...). It is the only way to lower the cost across California. Build way more than what has been done so far.