patrick.net

New Jersey

HousingWatcher says

Who here still believe the nonsense that lower home prices are good because they mean lower proeprty taxes?

In California, pretty much everyone due to Prop 13.

shrekgrinch says

This is causing major budget problems for the State, too. Basically, about half the property tax revenues go to Sacramento while most of the rest goes to the school district.

Right ! Sac balooned their spending back in 98-99 on the belief that the tech stock bubble was legit even when some were saying it was going to fall .. So they ignored it expecting Capital Gains Tax to continue for several years. That ended badly.

The same happened again with the RE bubble. So in their wisdom kept spending more, instead of fixing their first mistake above. And all the while ignoring that RE prices were going to collapse and prop tax were going to fall..
After all, CAR was telling SAC there was no Bubble, and they believed it.. hook line and sinker!

In Mass Prop 2 1/2 was inspired by Prop 13. Property taxes can only go up 2 1/2 percent unless there is an override. Overrides have to be voted in. Add in some local town meeting and put it on tv and it can be funny.

But if they can't raise the taxes they'll raise the assessment and blame it on inflation for the cause.

thomas.wong1986 says

So they ignored it expecting Capital Gains Tax to continue for several years. That ended badly.
...
After all, CAR was telling SAC there was no Bubble, and they believed it.. hook line and sinker!

Yes, this is the reason for a lot of flush finances in California in recent years. For example, UC udergrad tuition barely went up from the mid-90s until 2002 or so, and didn't go up much until recent years. The professional students of course got bitten after the first bubble, and that wasn't enough, so they then had to get the undergrads. It was a last resort for the state assembly, since those boomer parents who pay those bills are actual voters, unlike the younger professional student crowd.

The structural problems of Prop 13 and the other misguided policies of California were effectively hidden or ameliorated for several years due to these two bubbles.

it sucks that the golden state of california has state income taxes, but my best mate in florida pays no state income tax.

however, property taxes are much higher per assessed value in the sunshine state, so that puts my burden at ease a bit. yay

The overall tax burden is pretty damn high in CA. but property taxes if you bought pre-bubble are not too bad and they will lower them if you protest.
My GF just had her's lowered (she bought in 2000) it wasn't too difficult a process and saves her quite a bit as even under prop 13 it creeps up each year. She is not thrilled that the value is now back to about what she paid in 2000.