Comment by sbuttgereit

6 days ago

This is in California.

The hand-wavy explanation is that in the late 70's when this initiative passed (Prop 13), home values were rising rapidly due to an influx of people moving to the state and higher inflation rates of the times. Many people that owned homes, including those that had purchased their homes and retired, were getting priced out of their homes on the property tax rates. There are other rationales or rationalizations depending on where you come down on it. But Prop 13 was intended to slow property tax growth while you owned the property, with assessment reset to full market value at sale time.

4 comments

sbuttgereit

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pc86  5 days ago

It's not in California, there are several states that do this. California is not actually the worst because at least my understanding with California is that there is a public formula you can run based on lot size, sale price, and/or assessment value to figure out your tax liability. So basically you can figure out what your taxes will be like for any offer you make.

  • sbuttgereit  5 days ago

    It's just market value.

    > *SECTION 1. (a) The maximum amount of any ad valorem tax on real property shall not exceed One percent (1%) of the full cash value of such property. The one percent (1%) tax to be collected by the counties and apportioned according to law to the districts within the counties.*

    (https://leginfo.legislature.ca.gov/faces/codes_displayText.x...)

    At sales time basically the sales price establishes the assessed value for taxes.

    Again, this isn't a precise reading, but the general idea.

MichaelZuo  6 days ago

Isnt this a bit circular?

By definition if it hasnt been overturned yet, then the opponents havent mustered enough political capital to overturn it.

So its complaining they are disadvantaged by policies due to having inferior political capital, no duh!

(Presuming the original motivation wasnt entirely random)