Comment by isubkhankulov
16 hours ago
Yes, your property tax is high ($17k) because of prop 13 - you are effectively subsidizing others who have sat on their residential and commercial property for 20-30+ years who are paying 25-50% of what you pay for any similar property in the same calendar year!
Your property tax goes up by 2% of your , guessing (relatively recent?) purchase price, and theirs goes up 2% of a much smaller base due to prop 13.
They have no incentive to move, downgrade. And they often use trusts to pass this tax base down to their kids. It’s feels like icky European feudalism.
Again i’m emphasizing that this goes for both residential and commercial buildings.
I agree with everything you’ve said, but one clarification: you don’t even need a trust to pass the tax break down to your kid when you die. Sure, a trust can streamline that process, but it’s not required. At least everyone lucky enough to inherit benefits, not just those whose parents had the foresight (and the means) to create a trust.
> It’s feels like icky European feudalism.
Pairs nicely with the permitting processes that basically boil down to "thou shalt pay the guild"