Re:Silicon Valley's housing crisis, in one sentence
by dragonwriter on Tuesday June 07, 2016 @05:54PM
(#11858260)
> Which was created to combat the problem of grandma kicked out of her house because she can't afford her property taxes. How do you get around that?
No, it wasn't created to combat that problem; if it was, it would have (even had the same general approach been used) been narrowly drawn to residential property, and maybe even only to properties that are primary residence of the owner.
> How do you get around that?
Lots of ways, including going to full value annual assessment of all property, but allow, for owner-occupied primary residences, deferment of taxes in excess of the lesser of the total tax due in the year of sale [0] increased by 2% per year since the sale or some function of the owner's income (the exact function is an implementation detailed) to be deferred until the property is sold [0], with the taxing authority acquiring a lien on the property.
[0] Note that you can expand "sale" to include the same kind of improvements that allow new assessments under Prop 13, as well.
No, it wasn't created to combat that problem; if it was, it would have (even had the same general approach been used) been narrowly drawn to residential property, and maybe even only to properties that are primary residence of the owner.
> How do you get around that?
Lots of ways, including going to full value annual assessment of all property, but allow, for owner-occupied primary residences, deferment of taxes in excess of the lesser of the total tax due in the year of sale [0] increased by 2% per year since the sale or some function of the owner's income (the exact function is an implementation detailed) to be deferred until the property is sold [0], with the taxing authority acquiring a lien on the property.
[0] Note that you can expand "sale" to include the same kind of improvements that allow new assessments under Prop 13, as well.