5 ms·

What about the massive rents that Californians have to pay due to the state's lack of housing? I would argue that since this is completely caused by State and

What about the massive rents that Californians have to pay due to the state's lack of housing? I would argue that since this is completely caused by State and Local governments, you can argue this is a tax levied by the state and distributed to property owners.

AceJohnny2 4y ago
Blame Prop 13, a proposition (law drafted by popular initiative) that was enacted in 1978 following rapidly rising property taxes, due to rising property values due to high demand. It passed with a staggering 62% of the popular vote. Prop 13 leads to perverse incentives where homeowners are disincentivized to allow developments in their area, so that they can "Preserve the Character of the Neighborhood". (Otherwise, they may want to allow development, to reduce demand and thus their property tax load) This also leads to underfunded local services, like education, which is mostly funded by local property taxes. https://en.wikipedia.org/wiki/1978_California_Proposition_13 https://en.wikipedia.org/wiki/1978_California_Proposition_13
- pkaye 4y ago
  Only 27% of education funding in California is local property taxes. Most of it is from state income taxes or Federal government divided out based on school student count and other factors. Many states are in the 20-30% range for local property tax funding but there are a few where it is much higher like 47% for Texas and 57% for Illinois. https://ed100.org/lessons/whopays https://ed100.org/lessons/whopays
  - AceJohnny2 4y ago
    That practically proves my point though. Education is underfunded, and in California local property taxes aren't contributing much.
    - pkaye 4y ago
      But you just said education is mostly funded by local property taxes. > This also leads to underfunded local services, like education, which is mostly funded by local property taxes.

5 ms·

What about the massive rents that Californians have to pay due to the state's lack of housing? I would argue that since this is completely caused by State and

by hahaxdxd123 4y ago

AceJohnny2 4y ago
Blame Prop 13, a proposition (law drafted by popular initiative) that was enacted in 1978 following rapidly rising property taxes, due to rising property values due to high demand. It passed with a staggering 62% of the popular vote. Prop 13 leads to perverse incentives where homeowners are disincentivized to allow developments in their area, so that they can "Preserve the Character of the Neighborhood". (Otherwise, they may want to allow development, to reduce demand and thus their property tax load) This also leads to underfunded local services, like education, which is mostly funded by local property taxes. https://en.wikipedia.org/wiki/1978_California_Proposition_13 https://en.wikipedia.org/wiki/1978_California_Proposition_13
- pkaye 4y ago
  Only 27% of education funding in California is local property taxes. Most of it is from state income taxes or Federal government divided out based on school student count and other factors. Many states are in the 20-30% range for local property tax funding but there are a few where it is much higher like 47% for Texas and 57% for Illinois. https://ed100.org/lessons/whopays https://ed100.org/lessons/whopays
  - AceJohnny2 4y ago
    That practically proves my point though. Education is underfunded, and in California local property taxes aren't contributing much.
    - pkaye 4y ago
      But you just said education is mostly funded by local property taxes. > This also leads to underfunded local services, like education, which is mostly funded by local property taxes.