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CA housing cannot be fixed without across the board reassessment. Otherwise the winner with an old property paying 2% of their 1980s purchase price will never s
by koolba 2y ago
CA housing cannot be fixed without across the board reassessment. Otherwise the winner with an old property paying 2% of their 1980s purchase price will never sell. The immediate tax hit for moving to a similar house would be financial insanity.
And reassessing across the board is not going to happen either because it would price out grandma living on a fixed income.
- clpm4j 2y agoI bought my house (in CA) in 2019, and my property tax bill is ~$30k/yr. My literal nextdoor neighbor's property tax bill is less than $1k/yr (it last sold in the 1960s and has been passed down within the same family).
- bombcar 2y agoAnd to fix the problem, they added Prop 90 and 19, which now let you transfer the base value around! What an amusing shell game. https://www.boe.ca.gov/prop19/#FAQs https://www.boe.ca.gov/prop19/#FAQs But more efficiently shuffling existing supply doesn't create new supply.
- jacobr1 2y agoTax deferral to the estate for anyone over X age or that has owned a property for more than Y years. Or some gradient on either age or property ownership duration would address some of the issue. Even if you mitigate things with some kind of blanket exemption either of the estate or just to for life for a small set of folks that qualify, you need to stop it from new homeowners getting locked in.