Comment by dv_dt
2 days ago
> Prop 13 has completely distorted the housing market; it is, perhaps unintuitively, a co-cause of CA's housing unaffordability issues. (Prop 13 discourages new development, and is an enabler of housing NIMBYism.)
I have heard this assertion with no proof or backing data a lot. There is an assumption but no explanation how kicking long time residents out of their homes due to tax pressure is a benefit to the community, or real estate market prices. Real estate agents and other service companies might benefit from more transactions.
There is also usually no mention that the main problem of Prop 13 is that it applies to commercial and industrial properties, not just individual primary residences. Individuals have a limited impact scoped to their life, but tax implications applied to long term corporations is what has an outsized effect.
The nonexistence of Prop 13 in other states should be pretty clear evidence that there are more options besides Prop 13 or kicking out lifelong residents.
California already has property tax deferment.
Sure, Florida doesn't have prop 13 and experiences 10x the property tax forclosure rate of California. It's not a desirable thing.
Florida also doesn't have swarms of homeless people like CA does.
I find that forcing the elderly out of multimillion dollar homes and into apartments or even smaller homes is infinitely preferable to the human catastrophe plainly obvious on the streets of LA and SF.
> There is an assumption but no explanation how kicking long time residents out of their homes due to tax pressure is a benefit to the community
One benefit of an equal property taxation system would b having workers close to the city centres where they work rather retirees.