Prop 13 is one of the few reasons many could consider staying in California, vs having to pay property taxes on the bubble prices here. Property taxes do go up at what amounts to reasonable inflation numbers.
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.
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.
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.
The single best thing California could do for Californians would be to sunset prop13 protections.
It's pretty rare even in extremely high property tax counties like Cook and DuPage here in Illinois.
I mean, Prop 13 passed specifically because seniors were losing their homes. But in this case the cure was worse than the disease.
Paying $5k-10k every year perpetually just seems outrageous to me. (I don't make a silicon valley wage)
Yes this means folks will have to move, but again as cities grow and shape themselves, is it even the same place people have in mind that they started in?
May be my attitude is colored by my immigrant status though - I was willing to pack up and move, so trying to understand what makes people sticky.