Quote:
Originally Posted by Rtrorkt
Prop 13 basically upset the normal flow of money. In most states, as I understand it, 1/3 of revenue comes from income tax, 1/3 from sales tax and 1/3 from property tax. In CA with prop 13, the property tax is less than 20% of the budget due to the rules. Those rules say your property tax can never go up once you own your house. And I know why, with folks getting taxed out of their homes. However, the burden then fall disproportionally on new home buyers, like me. The previous owners of my house paid less than 1/2 of what I am paying. The system ends up with a two class system.
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The taxes on the house I bought in SoCal are about 4x what the previous owner paid. He bought the house new in '65. The taxes are on par with what I pay in DC on my condo, and noticeably less than what I would be paying if I still lived in Northern VA. One of my colleagues in NoVA commented to me that as home prices fell during the home price burst, the millage rate increased to hold property taxes, in dollars, at least constant. Now isn't that special?