"Well, I'll give him another twenty minutes; but that's it!"
Posted on 12/11/2017 12:57:32 PM PST by NohSpinZone
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The proposal from the California Association of Realtors would expand Proposition 13, the landmark constitutional amendment passed by voters in 1978 that has kept homeowners’ property taxes artificially low over the years, even as their home values have doubled or even quadrupled. Under the initiative, homeowners who are over 55 or severely disabled would be able to keep those lower tax obligations for life, regardless of how many times they move, as long as they stay in California.
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(Excerpt) Read more at mercurynews.com ...
There are a lot of very rich San Francisco, Peninsula elderly who don't need the tax break who would get a massive one. That would not play well around here.
[that has kept homeowners’ property taxes artificially low]
as opposed to artificially high. LOL
It’s a trap!
“Artifically” low?
The state owns all your money, I bet you didn’t know that.
it is not artificially low. It is just limiting the government by not feeding the beast.
This is “portability” of the cap. Makes sense to keep people in the market. Just eliminate the age restriction.
“that has kept homeowners’ property taxes artificially low]
as opposed to artificially high. LOL”
Right you are. A left wing newspaper peddling BS. I have lived in CA for 47 years. Before Prop 13, I owned a home in LA County. In areas where home prices were increasing, the county assessor was re-assessing homes every year. So, we were seeing huge annual increases in our property taxes. It was horrible.
Howard Jarvis came up with Prop 13 in the late 1970s, and it passed by a wide margin. It saved many folks from having to sell their homes because of the tax burden. Prop 13 allows annual assessment increases of up to 2% depending on the rate of inflation. So, existing homeowners are protected. The one negative is that when a home sells, for the new owner, the taxes are based upon the sales price, and those taxes also can increase by up to 2% a year. So, there is a negative for the new owners of properties sold that have increased in sales value. For instance, a new homeowner living next to a long time homeowner could be paying substantially more in property taxes.
All that being said, there is another law that allows for the assessed value of homes to decrease if home prices decrease. So, right after the great recession of 2008-09 when home sale prices dropped by up to 40%, those homeowners who had purchased their homes during the rapid price increases experienced between 2000 and 2007 have experienced a major reduction in their property taxes. I am one of those homeowners, and I am paying substantially less than I was paying in 2005 when we purchased our home.
With regard to this proposed law to benefit those over 55, that law already exists in a number of California counties that adopted such a regulation a few years after Prop 13 passed. If you live in one of those counties and move to a more expensive home in that county, you can keep your existing amount assessed on the former home and have it applied to the newly purchased home. This is for 55 and above only, and only in certain counties.
There shall be No Tax on property for those that receive 50% or more of their annual income from Social Security.
Would be much better
you also get the same deal if you buy your house from a parent or grandparent. I bought my Mom’s house in Simi Valley when she retired and kept her property tax valuation.
WHITE PRIVILEGE! Sorry, just gettin' in before it comes in on its own. Thanks NohSpinZone.
Proposition 13, the landmark constitutional amendment passed by voters in 1978 that has kept homeowners’ property taxes artificially low over the years, even as their home values have doubled or even quadrupled.
The homeowner does not see any value in their home unless sold. The next buyer begins paying taxes based on the resell price.
I have lived in my home for 40 years. It is paid off. I can afford the property taxes now (one months social security check).
But if I had to pay taxes based on what the resell value is I would not be able to afford the taxes. My income is fixed. I would be forced out of my home. This is the reason for Prop 13 to keep old people on fixed incomes from being forced to sell because they could not afford the taxes.
God Bless Howard Jarvis!!
He may have been the greatest Californian that ever lived...
"Well, I'll give him another twenty minutes; but that's it!"
A person 55 or older could transfer a lower property tax basis to a replacement property in any county. Not just the 11 counties currently participating in prop. 60 and 90.
That is my quick and dirty take on this measure. The legislature passed the measure, but voters need to ratify by a simple majority.
A huge number of houses in California are occupied by people who would like to sell and move, but don’t do so because they would lose their grandfathered property taxes. My brother has been in the same house for thirty years. If he sold and moved to a similar house, his property tax would increase 10 times over.
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