Quote:
Originally Posted by jyl
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 (OR MOVE) 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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Prop 13 is a tax on new homeowners and a subsidy to existing homeowners.