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[quote=Anonymous][quote=Anonymous][quote]I don't get all this arguing about property taxes. I've only ever lived in various Virginia counties, but property taxes are assessed on fair market value, not what you paid in 1978.

Everywhere should be like this. Its only fair.

This is why the real estate market is so distorted. It incentivizes homeowners to stay in their homes forever and pass down to their children. Inventory is so low and so expensive that it's out of reach for people trying to buy their first home or new to the state. Not to mention falling property tax revenues which have led to failing schools. But, this is what the voters want.[/quote]

Fortunately, in 2020 an amendment was passed to stop the inheriting of parent's tax basis which was really ridiculous  and esp inheriting and renting it out for advantageous tax situation (and I am a child who would have benefitted but I agree its not conducive to healthy communities).

Prop 13 did a lot of damage. But when it was first pitched, it was also an attempt to mitigate total gentrification so that people like schoolteachers and regular folks who had bought could stay in their homes even as their neighbors sold and new mansions were built in place of small homes.  People like my mom, who bought her home 4 decades years ago, and is a retired part time teacher  on a modest fixed income and still has a mortgage because she's refi/cash out for various things (divorce, medical debt, native landscaping, earthquake retrofitting and solar) was able to stay in her home because her taxes are 8k year and not 30k/year, which is what they would be otherwise (and this is not a renovated mansion, its a 2200 sq ft ranch last renovated in 1983).  That being said, she and my dad voted against prop 13 way back in 78 because they thought it would decimate public education (and it did) but I dont think anyone foresaw how much it would tie up real estate. There is a lot of history there too--the massive inflation of the 1970s also meant an affordability crisis for homes so constantly increasing taxes plus high interest rates made it very challenging for people to afford/live/work/stay in their communities and there was thus more support for it.  But as we have seen Prop 13 had massive consequences as well.

I am in favor of wealthy people paying more taxes in general, both state and federal, and using those dollars to make life better for communities. California does have high income tax, but the property tax situation is distorted.

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It didn't stop children inheriting it from getting their parent's tax base. They still do if it's the primary home. Doesn't transfer if they rent it out. It also allows the homeowner to transfer their tax basis to an entirely different home as long as it meets certain criteria.[/quote]

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