patrick.net

Without prop 13 CA property taxes would kill everyone, I hear it was modified recently to prevent passing down lower rates as inheritance, but I don't know details, I'm not in CA anymore.

Having lived in CA I realized what government was doing to INCREASE rents. It was obvious. Section 8 housing was paying double what rents in the area were. They still do, you can go look at their website, rates are public info. That kind of thing was intentional, it increased rents, and it increased real estate values for investors. Simply put it's a scam, fraud. This happens in other states too. FHA does the same thing.

That's why people are feeling screwed, because government fraud intentionally takes their money, increases their cost of living, to prop up real estate valuations for few rich investors. Those people should be in jail for this. But they won't be, because both parties have been doing this for years. It's frustrating.

FortWayneHatesRealtors says

Without prop 13 CA property taxes would kill everyone, I hear it was modified recently to prevent passing down lower rates as inheritance, but I don't know details, I'm not in CA anymore.

That's why they should repeal prop 13 with the mandate that every penny saved will be used to reduce property taxes for all. The only fair solution. Keeping it distorts prices and benefits boomers and genX mostly, just repealing it benefits govt only.

mell says

FortWayneHatesRealtors says

Without prop 13 CA property taxes would kill everyone, I hear it was modified recently to prevent passing down lower rates as inheritance, but I don't know details, I'm not in CA anymore.

That's why they should repeal prop 13 with the mandate that every penny saved will be used to reduce property taxes for all. The only fair solution. Keeping it distorts prices and benefits boomers and genX mostly, just repealing it benefits govt only.

You assume they’ll lower everyone’s rates to level. They won’t. Government represents investors not people. They want more out of you so they can take it for themselves. Love of money is root of massive evil there.

FortWayneHatesRealtors says

mell says

FortWayneHatesRealtors says

Without prop 13 CA property taxes would kill everyone, I hear it was modified recently to prevent passing down lower rates as inheritance, but I don't know details, I'm not in CA anymore.

That's why they should repeal prop 13 with the mandate that every penny saved will be used to reduce property taxes for all. The only fair solution. Keeping it distorts prices and benefits boomers and genX mostly, just repealing it benefits govt only.

You assume they’ll lower everyone’s rates to level. They won’t. Government represents investors not people. They want more out of you so they can take it for themselves. Love of money is root of massive evil there.

Exactly. Prop13 is a tax revolt agains money-grabbing CA government whores. It's not like them whores become less money-grabbing in the decades past, is it?

MolotovCocktail says

Terrible font color. I had to zoom in that image and it was still difficult to read.

Plus a spelling error.

Proposition 13, passed in 1978, contributes to higher California home prices by capping annual property tax assessment increases at 2% until a sale occurs, creating a "lock-in effect" that discourages long-term owners from selling. This limited inventory, combined with lower holding costs for vacant land, drives up market prices.

Key Impacts of Proposition 13 on Home Prices:

Assessment at Sale: Properties are reassessed at 1% of the market value only upon sale. For long-term owners, this means taxes do not keep pace with market appreciation, encouraging them to stay, reducing turnover, and lowering supply.

Reduced Turnover (Lock-in Effect): Because selling means a new, higher tax bill, homeowners are less likely to move, which restricts the housing supply and puts upward pressure on prices for available homes.

Lower Holding Costs: Property taxes for vacant land or underutilized property stay low, allowing owners to hold onto valuable property without selling, which further limits development and supply.

Wealth Disparity: While it protects seniors and long-term owners from tax spikes, it creates a scenario where new homebuyers pay significantly higher taxes than neighbors in similar homes.

While intended to prevent people from being forced out of their homes by rising taxes, this 1978 amendment to the California Constitution is widely recognized as a factor in the state's housing shortages and high costs.

"Ponzi Scheme" Arguments

Critics argue Proposition 13 resembles a "ponzi-like" structure because it requires ever-increasing, high-priced sales to new buyers to generate sufficient property tax revenue for local governments.

Unequal Tax Burden: New buyers, often younger or diverse, subsidize public services for long-term owners.

Revenue Strain: Municipalities, limited in property tax growth, often rely on increased fees for new construction, further raising housing costs.

Corporate Benefits: Many corporations have maintained 1970s tax assessments on valuable, high-turnover land.

If any other State in US ever looking for evil CA Prop 13 to implement into their own state, they essentially decided to burn down their own state.

Blue says

Corporate Benefits: Many corporations have maintained 1970s tax assessments on valuable, high-turnover land.

Private mom-and-pop landlords put their property into LLCs, too. That way, they sell the LLCs and not the property - as that still remains owned by said same LLC. LLC sales are also business transactions and so don't involve Realtards nor their commissions.

Blue says

Critics argue Proposition 13 resembles a "ponzi-like" structure because it requires ever-increasing, high-priced sales to new buyers to generate sufficient property tax revenue for local governments.

This passed as tax revolt when seniors who worked all their lives were losing housing because government kept hiking taxes to pay the government unions and various government/corporate corruption.

You really want to give CA horrible government more tax dollars? I don't know anyone who wants to give CA government more money. IMO all property taxes in CA on primary residences should just be abolished. Just hike up sales taxes to make the difference. That's the most fair version. Secondary/vacation/rental homes, those get a tax hike. There is absolutely no reason to keep low taxes on business and secondary properties used as rentals. Prop 13 was to keep seniors in their homes, not be a permanent business subsidy.

I'm going to be inheriting a CA property soon, and will be selling it. I know it's stupid to sell, because I will be able to rent it out at inflated Section 8 rate, and collect 6-7% appreciation annually, while keeping taxes very low. I will still sell anyway, just because I don't want anything to do with CA government. Will make some jackass realtor happy I guess.

FortWayneHatesRealtors says

Just hike up sales taxes to make the difference.

Are you aware that sales tax rates are already ~11%?

FortWayneHatesRealtors says

Just hike up sales taxes to make the difference.

Are you aware that sales tax rates are already ~11%?

FortWayneHatesRealtors says

Prop 13 was to keep seniors in their homes, not be a permanent business subsidy.

Wrong. It was meant to use the excuse of seniors to cut the government at the knees. Classic starve the beast. Howard Jarvis admitted to this before he died.

MolotovCocktail says

FortWayneHatesRealtors says

Just hike up sales taxes to make the difference.

Are you aware that sales tax rates are already ~11%?

Yes. And waiters ask for tips at 20%. We clearly got wiggle room.

FortWayneHatesRealtors says

Yes. And waiters ask for tips at 20%. We clearly got wiggle room.

Tips are not required upon pain of imprisonment.

MolotovCocktail says

Blue says

Corporate Benefits: Many corporations have maintained 1970s tax assessments on valuable, high-turnover land.

Private mom-and-pop landlords put their property into LLCs, too. That way, they sell the LLCs and not the property - as that still remains owned by said same LLC. LLC sales are also business transactions and so don't involve Realtards nor their commissions.

Deposing of property either LLC or any tax benefit arrangement for any gain still needs to be filed at tax time. Defer and deprecate is all we can do on the inevitable.

MolotovCocktail says

FortWayneHatesRealtors says

Just hike up sales taxes to make the difference.

Are you aware that sales tax rates are already ~11%?

FortWayneHatesRealtors says

Prop 13 was to keep seniors in their homes, not be a permanent business subsidy.

Wrong. It was meant to use the excuse of seniors to cut the government at the knees. Classic starve the beast. Howard Jarvis admitted to this before he died.

Cutting government funding as best we can is all we can do to limit the state government and keep it in its constitutional box. Jut because a group of people say we want the government to provide this or that “services” doesn’t mean that should occur. Or that we need to pay more taxes to support it.

beershrine says

Deposing of property either LLC or any tax benefit arrangement for any gain still needs to be filed at tax time. Defer and deprecate is all we can do on the inevitable.

The property is not being deposed. Only the LLC.

https://www.usdebtclock.org/state-debt-clocks/state-of-california-debt-clock.html

California
Debt to GDP ratio: 15.5%
Debt per resident: $16,000

Colorado (aka: Calirado)
Debt to GDP ratio: 17%
Debt per resident: $14,000

Free State of Florida
Debt to GDP ratio: 10%
Debt per resident: $6,500

Massachusettes (aka: Taxachusettes)
Debt to GDP ratio: 15%
Debt per resident: $15,500