The fear that old folks will be taxed out of their long-time homes, as house values rise, is easily handled.
Simply allow the property tax payments to be deferred until the home's owner (and spouse) pass away, then the tax is paid from the sale of the house. Easy.
I don't think one group of homeowners should subsidize the other group.
Prop 13 did huge damage to California's finances, by reducing a stable source of revenue (property taxes) and forcing the state to rely more on volatile sources (as explained above). This makes the state more vulnerable in recessions.
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Originally Posted by Jim Bremner
Hmm, did my income double plus in the last ten years? no, so I should pay more tax?
In the early 79's when my house was built the value was $60k If I was a 40 year old guy back then and retired in the '90s with a house worth 500k should I be taxed out of my home when my retirement budget doesn't cover it?
Now, since my wife is a disabled person we have another thing with prop 13.
She and I can sell our home and move anywhere in the state and carry the prop 13 rate with us as long as our next house is less than the value of our last home. We will pay the same as our old 1996 tax value
8 percent of our income goes to the State, 9% of what we spend for goods goes to the state, 2% of the worth of our vehicles goes to the state, (when you buy a car you pay the sales tax, + the 2% for "registration" ) and 1.2% of the value of our house goes to the state. We bought our house for $306,500 BUT we pay tax on $360,000 due to the county assessor rated the house higher than what we paid.
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