Re:How Property Taxes Shape Our Cities
by opportune on Tuesday July 03, 2018 @02:41PM
(#17452687)
Yeah but it’s extremely unfair to young people who want to buy homes and don’t have luck of coming from a family with a house locked into a low tax rate. Your “stabilization” is everyone else’s inability to buy a house
None of this would be a problem if the proposition had been sane. They could have just allowed primary home owners over a certain age (59.5, 65, etc) to have locked-in property taxes. The bullshit is that the “stabilization” applies to corporations with indefinite lifespans, and that the tax rates can be inherited. By corporations we’re not just talking big, actual business like Google. The way the proposition works incentivizes real estate funds to simply buy all the land they can as soon as possible to lock in a low rate that can be maintained indefinitely. This brings housing prices further up and disincentivizes actual land ownership over the long term (it makes it cheaper to rent from a group that structurally locked in a stupid low property tax rate).
It’s such a stupid fucking law. Clearly nobody bothered to think of the long term consequences
Re:How Property Taxes Shape Our Cities
by wedn3sday on Tuesday July 03, 2018 @03:40PM
(#17453066)
I disagree, I think large groups of highly paid lawyers spent a great deal of time looking at the long term consequences and got the legislature to do exactly what their CEOs wanted.
Re:How Property Taxes Shape Our Cities
by opportune on Tuesday July 03, 2018 @03:45PM
(#17453095)
Proposition 13 passed by referendum. However I do agree with the general sentiment: it was probably easy for interest groups to rally behind senior citizens to their own benefits
None of this would be a problem if the proposition had been sane. They could have just allowed primary home owners over a certain age (59.5, 65, etc) to have locked-in property taxes. The bullshit is that the “stabilization” applies to corporations with indefinite lifespans, and that the tax rates can be inherited. By corporations we’re not just talking big, actual business like Google. The way the proposition works incentivizes real estate funds to simply buy all the land they can as soon as possible to lock in a low rate that can be maintained indefinitely. This brings housing prices further up and disincentivizes actual land ownership over the long term (it makes it cheaper to rent from a group that structurally locked in a stupid low property tax rate).
It’s such a stupid fucking law. Clearly nobody bothered to think of the long term consequences