patrick.net

We desperately need a prop 13 tax overhaul. Owners who bought a long time ago or inherited are not paying their fair share. They need to start paying 1.25% of current market value. That’s what we have to pay in case we decide to buy an overpriced crapshack.

P N Dr Lo R says

In other words work kind of like a sales tax--on a $300K home you'd owe another $24,000 if the sales tax was 8%. That would just be a cost you'd have to factor into the price. Already cars are costing what houses used to cost--a new Navigator can cost $72,000, which adds another $5,700, what used to buy a luxury car maybe 40 years ago.

That's how I'd see it. I think the U.S tax system is overly complex, wasteful, and just enlarges government.

What do you guys think?

Goran_K says

That's how I'd see it. I think the U.S tax system is overly complex, wasteful, and just enlarges government.

What do you guys think?

Absolutely agree.

Corporations and individuals that own single family homes for rental should not be "protected" under prop 13. That was not the intent of the law.

There is a blight of neglected rentals all over the bay area. Landlords just collect rent and do minimal maintenance. Tenants don't complain because someone else will pay more for less.

I was driving through Alameda (the island city) the other day and saw block after block of glorious old victorian houses. Restored jewels here and there but many were in states of disrepair from faded paint to nothing put curled paintchips on bare weathered wood.

Slumlords don't need taxbreaks. Neighborhoods need pride of ownership.

willywonka says

You see, without Prop 13, Granny, who owns her home outright, and may live for another 10-20 years, can't afford to pay taxes on her million dollar crapshack. If only she knew about home equity loans.

Granny should move someplace with a lower cost of living. I doubt that the move has to be all that great either (1-2 hour drive from previous location for most people). I can't comment about CA, but if it were DC, there is affordable housing on the Delmarva peninsula, West Virginia, Southern MD, and I'm sure in places in VA too, just not near DC.

Ca is fubar. Supply very low, demand through the roof.

zzyzzx says

willywonka says

You see, without Prop 13, Granny, who owns her home outright, and may live for another 10-20 years, can't afford to pay taxes on her million dollar crapshack. If only she knew about home equity loans.

Granny should move someplace with a lower cost of living. I doubt that the move has to be all that great either (1-2 hour drive from previous location for most people). I can't comment about CA, but if it were DC, there is affordable housing on the Delmarva peninsula, West Virginia, Southern MD, and I'm sure in places in VA too, just not near DC.