Re:Governor Brown's housing proposal could mean sweeping Bay...
by ghaff on Wednesday May 18, 2016 @03:25PM
(#11724988)
You don't even need to bring Prop 13 into the discussion. Depending upon both existing demographics of a town and the expected demographics of a new project, the development can lead to tax increases. Because, in many cases (especially outside of cities) most property taxes go to the schools, a development catering to young families is going to put a lot of pressure on an existing tax base in a community tending toward singles and couples with their kids off to college and beyond.
Re:Governor Brown's housing proposal could mean sweeping Bay...
by adrr on Wednesday May 18, 2016 @03:32PM
(#11725070)
Community could always implement Mello-Roos tax which can be used to fund new infrastructure. Its how a lot of new communities pay for their schools and roads.
Re:Governor Brown's housing proposal could mean sweeping Bay...
by refurb on Wednesday May 18, 2016 @08:18PM
(#11727070)
This is a great point that a lot of people miss. Yes, Prop 13 limits the increase in property taxes, but there are other ways to raise taxes collected on homeowners.
When I was looking to buy a house in SF, I dug up a lot of the tax information and the Mello-Roos tax seemed pretty common.
Prop 13's property tax rate limitations made developer fees more important as a source of revenue to support city services (raising up-front property prices.)
Under Prop 13 -- both the rate limitations and the assessment increase limitations -- "everybody else" isn't paying for the (full, prorated costs of) services through taxes, new homeowners are paying full-freight from full-value assessment and direct taxes, and by paying (or, for new purchasers of existing houses, in effect reimbursing the prior owner) for the development fees. Homeowners that have held their property longer still paid (or reimbursed) the development fees when they bought the house, but pay reduced share through direct property taxes.