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Repeal Prop 13


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2009 May 20, 11:16am   23,243 views  111 comments

by dunnross   ➕follow (1)   💰tip   ignore  

California is bankrupt. How about a petition to repeal Prop 13? Does anyone here have an estimate of how much revenue that could potentially generate for the state?

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91   dont_getit   2009 Jun 17, 5:05am  

Why not revise Prop. 13 to “owner-occupied PRIMARY residence”?
That should neatly take care of all the Grannies on teacher pension that they trumpet the thing for. And neatly hose all the parasites and cheats who are the ones really behind it.

On top of it, they can add the tax lien on primary residence. As long as the primary residence is not sold, you still pay the old tax. When the house is sold, Govt should get their accumulated tax first.

92   Tude   2009 Jun 17, 5:27am  

Why not revise Prop. 13 to “owner-occupied PRIMARY residence”?
That should neatly take care of all the Grannies on teacher pension that they trumpet the thing for. And neatly hose all the parasites and cheats who are the ones really behind it.

Agreed 100%

93   justme   2009 Jun 17, 6:30am  

Can agree with all of the 3 above -- but keep in mind that supporters of prop.13 often cannot be bothered with facts or rational discourse. To them, the above can only be met with a sh*tstorm of lies an misrepresentation.

They want prop. 13 to be exactly the way it is, and no amount of rational thinking is going to change that.

94   grywlfbg   2009 Jun 17, 7:50am  

Why not revise Prop. 13 to “owner-occupied PRIMARY residence”?
That should neatly take care of all the Grannies on teacher pension that they trumpet the thing for. And neatly hose all the parasites and cheats who are the ones really behind it.

Careful w/ that. My landlord keeps his name and this home's address on the tax rolls and his wife's name and their real primary residence address on the tax rolls for their house. I'm sure there has to be a tax or insurance reason for doing this. Idk if the FTB can catch such behavior.

95   justme   2009 Jun 17, 8:40am  

grywlfbg,

Agree that any laws must be carefully examined for intended or unintended loopholes.

96   Vicente   2009 Jun 17, 9:10am  

There's a LIMIT to how far you can carry that scheme, and I view that as acceptable risk for SIMPLE revision. By "on the rolls" do you mean the wife is the owner in deed and all other paperwork? That would make things simpler during divorce eh?

It would slice out a large chunk of slumlords who rent out family houses they inherited. I know of plenty of examples here in Davis where original owners died long ago, and the children haven't been here in decades. They get some Realtor (TM) to be their property manager and rent them to students. Instead of putting these houses back on the market as would happen in other states, the low taxes they inherited form a subsidy that makes it profitable for them to continue renting them forever.

The real elephant in the room is Commercial Real Estate as previously stated by many. The Disney folks and strip mall owners who inherited a windfall will squeal like stuck pigs.

A husband & wife playing ownership shell games to beat the tax system hardly seems worth the extra effort to chase down.

97   jgreer8024   2009 Jun 17, 11:39am  

The problem is not revenue generation. It is spending. Got to starve the beast.

98   MarkInSF   2009 Jun 17, 1:50pm  

jgreer8024: The problem is not revenue generation. It is spending. Got to starve the beast.

UG!! For the 14 BILLIONTH TIME: Repealing Prop 13 isn't so much about raising taxes, it's about *FAIR* taxes. Equalize all taxation for property so that it's revenue neutral. My landlord, who got put on the title of his mothers house, then inherited it w/o reassessment, would see a big increase. Recent homeowners would see a big *decrease*. How the #$@% is it fair for me to pay 10X the taxes my landlord pays if I bought the house from him?

What's important is getting rid of the incentive to just squat on land even for non-economic uses, just because the tax is almost nil.

Sometimes I think these pro Prop 13 people are just willfully ignorant.

Just because the State has a spending problem does not justify brain dead tax policy.

99   WillyWanker   2009 Jun 17, 3:40pm  

You are more than welcome, Justme. An *sshole such as yourself merits everything sh*tty thing you get. Get well soon.

100   NJ   2009 Jun 18, 6:27am  

Agree with MarkInSF completely.

You can eliminate the the unfair aspects of Prop 13 without giving an extra dime (in total) to Sacramento. Sure, the taxes for some would go up, but you could equalize that by lowering taxes for others. The point is to make the system *fair* for all landowners.

Unfortunately, we have too many people who have climbed the ladder, and now they want to kick it down.

101   mrchanman   2009 Jun 18, 4:20pm  

Anyone who tries to organize a repeal of prop 13 will have a very difficult time as Prop 13 protects many specific groups due to the way that it was written:

1. Any owner of a home (just a guess, but the idea is pre-bubble, below inflation rate) pre-1999 who is paying way less tax than the current, inflation adjusted through 1980 rate.
2. Any renter can care less about repealing prop 13 as the proposition do not affect renters directly (and probably benefits them as most rentals are paying less tax than comparable current market home rates)
3. Any commercial property owner would not want Prop 13 repealed for reasons already stated in this thread
4. Anyone who does not want to see their taxes raised (let's not argue whether this is good or bad, but the fact is most people would prefer to pay less tax if asked) will not want to remove the 2/3rd requirement of both houses to passing new property tax

So to repeal prop 13 in one swoop would pit you against all of these groups, which appears to be way more than the majority of Californians.

Unless you can break this down (most likely into some sort of "reform" prop 13 campaign) or find a very compelling reason to get people on board despite their stake in keeping prop 13 in place (i.e., "See, if you repeal prop 13, then we'll get more revenue and the 2009 CA budget crisis will be resolved!), then I do not see how this law is going to be repealed.

102   justme   2009 Jun 18, 5:32pm  

Ah, all these compliments just for calling you a silly boy ....

103   elliemae   2009 Jun 18, 11:26pm  

I live in an area that has taxes for a $200k home at about $1,000 per year. So I've been shocked to find out about Calif taxes, and Mello Roos. I wiki'd it to find out more - and according to what I read, it's a way to get more dollars without increasing taxes. These are extra charges that aren't tax deductible, and some cost upwards of $1000 per month. So I don't understand what the difference between Mello Roos and Taxes are - other than semantics.

I'm very anti-semantic.

104   justme   2009 Jun 19, 5:24am  

I think Mello-Roos is just another case of making the (relative) newcomers pay for what the old-timers used to get for free.

It is sort a prop.13 on steroids. Not only do the newcomers pay higher regular property taxes, but they also get additional assessments for infrastructure (there's that popular word again) through Mello-Roos.

105   HeadSet   2009 Jun 19, 5:57am  

just another case of making the (relative) newcomers pay for what the old-timers used to get for free.

Get used to it. To deal with the deficits, look to see increased number of toll roads, more fees to visit parks, beaches or other public property, and maybe even partial tuition charges for public schools along with a charge for riding that yellow bus.

106   justme   2009 Jun 19, 8:19am  

Well, yeah, I'm pretty used to it already. The only freebie I got in California was a bit of public education. Not that I didn't work rather for it.

107   NJ   2009 Jun 19, 8:54am  

"1. Any owner of a home (just a guess, but the idea is pre-bubble, below inflation rate) pre-1999 who is paying way less tax than the current, inflation adjusted through 1980 rate.
2. Any renter can care less about repealing prop 13 as the proposition do not affect renters directly (and probably benefits them as most rentals are paying less tax than comparable current market home rates)
3. Any commercial property owner would not want Prop 13 repealed for reasons already stated in this thread
4. Anyone who does not want to see their taxes raised (let’s not argue whether this is good or bad, but the fact is most people would prefer to pay less tax if asked) will not want to remove the 2/3rd requirement of both houses to passing new property tax"

Assuming people act in their economic self-interest:

Agree with #1.

Disagree with #2 to the extent that said renters are looking to buy their first home. (Me, for example.)

Disagree with #3 with regard to new commercial property owners. I.e., the analysis should theoretically be the same for commercial owners as it is for residential owners in #1.

Agree generally with #4, but I feel that many (at least I) who call for the repeal of Prop 13 due to its unfairness are referring to its property tax provisions and not the 2/3-majority provisions. Though it is true that a wholesale repeal would, by definition, capture both.

108   WillyWanker   2009 Jun 20, 2:02am  

So much attention from you, justme, people will think we're in love.

109   justme   2009 Jun 20, 4:14am  

See, I *knew* you could say something nice if you wanted to. Shall we call it even?

110   mrchanman   2009 Jun 21, 2:11am  

Disagree with #2 to the extent that said renters are looking to buy their first home. (Me, for example.)
Disagree with #3 with regard to new commercial property owners. I.e., the analysis should theoretically be the same for commercial owners as it is for residential owners in #1.
Agree generally with #4, but I feel that many (at least I) who call for the repeal of Prop 13 due to its unfairness are referring to its property tax provisions and not the 2/3-majority provisions. Though it is true that a wholesale repeal would, by definition, capture both.

I am happy that you disagree with me, but I am afraid that you are in the minority of your group.
Point 2 (renters): How many renters actually know anything about Prop 13? Even if you include those who are looking to buy, this is not their primary concern and many are not educated about real estate to the extent that they would consider anything other than what their real estate agent and friends are saying. Unfortunately, the general populace does not read forums like this one.
Point 3 (commercial owners): I was stating current commercial property owners have no incentive to repeal Prop 13. Obviously, any prospective commercial property buyers would (hopefully) know about Prop 13, but how many people is this? Many of these buyers are already commercial property owners, so we are really talking about first time (in CA) commercial property owners only. And if they get in at a good price, they will suddenly become pro-Prop 13 people to protect their own interests.
Point 4 (anti-tax crowd): I understand that most people point to the unfairness aspect of the proposition when discussing Prop 13. I think my first 3 points cover this aspect and my fourth point is really a culmination of why I think it is near impossible to ask for the repeal of Prop 13 as a whole - it has too many different provisions that help many segments of the populace in multiple ways. Even if you can find someone who agrees that the property tax portion is unfair, the pro-Prop 13 crowd will simply state that if you repeal Prop 13, you will get taxed more.
In short, any repeal Prop 13 measures must focus on a specific aspect at any one time in order to succeed. You simply cannot suggest a wholesale repeal of Prop 13 and think that it will ever pass in CA. Although, at this point in time (budget crisis, anti-CA government sentiments), you could make an argument that this is the perfect time to can not only Prop 13, but the entire CA budget process.

111   grywlfbg   2009 Jun 21, 10:02am  

I'd be happy to just get rid of the Commercial property exemptions of Prop 13. To avoid the idiots, call it something else. The Fair Tax Proposition. Rt now people are angry at the establishment for "causing" the recession. I'm sure if you framed it correctly (stop bad, evil corporations from avoiding taxes) it would pass in a landslide.

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