3 ms·
The most compelling argument I’ve heard in favor of continuing prop 13, from a good policy perspective is that it lets people stay in their homes. But couldn’t
by kelp 6y ago
The most compelling argument I’ve heard in favor of continuing prop 13, from a good policy perspective is that it lets people stay in their homes. But couldn’t we achieve the same thing by means testing property taxes?
As it is now, the tax rate is set basically based on how long you’ve owned your property. I could be making $$$ and pay very very little. While my neighbor who bought more recently but earns less pays more. This seems deeply unfair to me.
Prop 13 also creates a very volatile tax base for local governments, contributing to the frequent budget issues we see in CA.
Means testing property taxes might make them more volatile than in states that don’t do that, but I can’t imagine it’s worse than the current situation.
Additional prop 13 sets up incentives so homeowners at all income levels are discouraged from selling and moving. And discouraged from allowing more housing supply because they only benefit from increasing housing costs. Taxes that go up with home value tend to blunt some of the benefit of that increasing value.
- bradlys 6y agoMost repeals of prop 13 would still include the widowed grandma clause that prop 13 was sold on. It would just get rid of some profits for the landlord class.
- giantg2 6y ago"Means testing property taxes..." It sounds like income and capital gains taxes would be a better type of system if one wants to charge people based on their means.
- mavelikara 6y agoProp 13 allows the tax rate to be inherited. Fixing this loophole will be a simple first step for fairness.
- dragonwriter 6y ago> Prop 13 allows the tax rate to be inherited. No, it allows transfer of property to certain relatives without full-value reassessment. Rates aren't any different than anyone else in the same jurisdiction pays, it's the assessment that is the issue.
- mavelikara 6y agoYou are right. I don't know why I wrote rate; what I meant is that the lower assessment can be inherited. That, I suspect, is the selfish reason many in this thread are asking "why do you want my parents out of their house"?