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It's worth noting that property taxes in California are only re-assessed on ownership change or new construction. There's no downside to having the value of you
by Talanes 5y ago
It's worth noting that property taxes in California are only re-assessed on ownership change or new construction. There's no downside to having the value of your home balloon as much as possible.
- fortran77 5y agoSure there is. Your property tax still goes up 2% a year if home prices rise. That's more than inflation has been. Rising prices also traps people -- they can't afford to move anywhere unless they go far away. As a CA homeowner (nortgage paid up!) I'd be much happier if house prices were half off what they are.
- jrmg 5y agoYes, if you actually want to stay in California, rising house prices only actually benefit you if you never want to buy a larger house - but the weird tax laws also disincentivize downsizing. If the smaller house costs more than your current house did when you bought it, you’ll see a significant property tax rise. I believe that, to counter this, There are some counties where if you move to a smaller house, you get to keep a tax rate akin to what it would’ve cost you at the time you purchased your old house!
- deleted 5y ago[deleted]
- imtringued 5y agoThen argue in favor of land value taxes instead of regressive taxes on work.
- omgwtfbyobbq 5y agoThey can increase when home values increase. But, that increase is capped at a percent per year, which practically speaking means taxes lag behind home values when they increase.
- jjav 5y ago> But, that increase is capped at a percent per year Property taxes in CA (Prop 13) go up by 2% every year.