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Revising Prop 13 – Benefit Actual Owners
invite response
2008 Feb 25, 8:41am 24,462 views 223 comments
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bubblesitter
2011 Mar 3, 3:06am
bubblesitter
2011 Mar 3, 3:06am
I was surprised when I learned that Propostion 13 has a heriditary tax basis.
Another point to consider is that many people who pay very little tax under Propostion 13 still demand a lot of services from the state of California. This services cost money.
Yeah they should repeal it to add money to the state budget to pay those pensions to already retired or soon to be retiring state workers.
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We all know the problems caused by the Jarvis-Gann ‘Prop 13’ tax revolt CA constitutional amendment. It was sold to the voters as a measure to “keep granny in her family homeâ€, but in reality the prime beneficiaries have been major corporations, whose campuses pay inordinately low property taxes, and those boomers who never seem to move.
Let’s say that the US Supreme Court strikes down Prop 13 as being an infringement of the 14th Amendment “equal protection†clause. How could we replace it and still keep granny in her home?
I have a fiendish idea. Let any owner-occupied residential property be FULLY EXEMPT from all property taxes IF the home is owned free and clear. But if there is a mortgage, trust deed, HELOC, MEW withdrawal, or any other suchlike activity, then the owner must pay his or her fair share of property tax.
Granny in the paid-off family home would thus be exempt. So would responsible homeowners who bought a house compatible with their income and who paid it off.
Irresponsible home “owners†who either bought more house than they could afford or who kept withdrawing from the home ATM would get stuck paying property tax. Hey, you guys get a mortgage-interest deduction: just roll those tax-savings over into your property tax bill!
To me most of the “unintentional consequences†of this plan are positive. What are your thoughts about this reform?
-DennisN
#housing