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A simple change I would suggest (for which I wouldn't shed a single tear) would be to say you can only get the Prop 13 benefit for your primary residence. This has a bunch of implications: (1) businesses can't get Prop 13 benefits, (2) your rental property or second beach home can't get Prop 13 benefits, and (3) you have the claim (and pay income tax) as an in-state resident (since it is your "primary residence").
The way the current laws work, not only do the kids inherit a house "for free," but they also inherit the super-low property tax on the house — the property tax is based on the price of the house when the parents bought the property (quite possibly before the child was even born).
I'm surprised Prop 13 and other tax issues haven't been re-visited with the top-to-bottom democrat state government.
The tax basis of any inherited property, but not just house, gets stepped up to the current market value if the original owner dies. Prop 13 has nothing to do with this.
Not sure why you are getting so jealous of homeowners. There are states that don't have any income tax. California has high income tax and sales tax both.
SunnyvaleCA saysThe way the current laws work, not only do the kids inherit a house "for free," but they also inherit the super-low property tax on the house — the property tax is based on the price of the house when the parents bought the property (quite possibly before the child was even born).
The tax basis of any inherited property, but not just house, gets stepped up to the current market value if the original owner dies. Prop 13 has nothing to do with this.
SunnyvaleCA saysI'm surprised Prop 13 and other tax issues haven't been re-visited with the top-to-bottom democrat state government.
Not sure why you are getting so jealous of homeowners. There are states that don't have any income tax. California has high income tax and sales tax both. On top of that you want to increase the property tax as well ...
Because of Prop 13 families and communities are financially segregated and brought back slavery in full force to serve entitlements to neighbors.
My issue with Prop 13 is that its effects are wildly uneven and it creates distortions in the market.
If, for example, property tax were 0.5% of actual market value, I'd pay about what I'm paying now, but I wouldn't be penalized (tax wise) if I chose to sell this house and buy a different one (to downsize, for example).
How about we talk about illegals who pay 0 taxes working for cash?
Welfare abusers who pay no taxes?
pwagner saysMy issue with Prop 13 is that its effects are wildly uneven and it creates distortions in the market.
I am not sure what you mean by this.
If you sell your current house for a profit and use the money to buy another house then you can do a 1031 exchange without incurring tax penalty.
If you are 50+ year old, then it is also possible to transfer your property tax basis from the old house to the new house.
I would rather get rid of property taxes. Once you buy an asset, you buy it and shouldn't have to pay rent on it.
Prop 13 is downright criminal
Prop 13 is downright criminal
BayArea saysProp 13 is downright criminal
Be careful what you wish for. Coem to Illinois and pay 15k for 350k house ayear and then there is no cap on taxes. The pigs here want to increase income taxes also.
lostand confused saysBayArea saysProp 13 is downright criminal
Be careful what you wish for. Coem to Illinois and pay 15k for 350k house ayear and then there is no cap on taxes. The pigs here want to increase income taxes also.
What does that have anything to do with prop13 in CA?
The distortions means that people are (partially) making decisions on tax avoidance and that those decisions are creating other problems that were unintended when the tax changes were made
The other two houses are owner occupied by single old women (husbands have both died); they can't take care of their own houses, they have no need for such large houses (i.e.: 3 or 4 bedrooms, 2 bathrooms, and 2 car garage for a single person with one car), and they don't gain any benefit from their location.
One neighbor's husband used to work at the HP complex that is now the spaceship so could walk or bicycle to work. That's great, but now her living there is hogging that house and keeping someone else from having a nice, short, commute that would help reduce road traffic and pollution.
I'd love to flee and escape the capital gains.,
lostand confused saysBayArea saysProp 13 is downright criminal
Be careful what you wish for. Coem to Illinois and pay 15k for 350k house ayear and then there is no cap on taxes. The pigs here want to increase income taxes also.
What does that have anything to do with prop13 in CA?
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