Taxes - Fed/State/Property/Sales
01-14-2025 | 06:30 AM
#101
Prime Minister/Moderator
Joined: Jan 2006
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From: Engines Turn or People Swim
The line is every year after prop 13 passed in the 70’s. This sounds more like your advocating hosing older folks that played by the rules and payed a highish pay roll tax for decades and now a high property tax in retirement. With zero thought on making whole. See the problem? The intent of Prop 13 was to keep people in thier homes in retirement. I agree like any other law there’s downsides.
You play by all the rules, pay taxes and mortgage for decades and then the government seizes your home at age 75 because some arbirtary website like zillow posts a very large number associated your address?
I'm sure there are ways to rationalize taxes for local services without taking away retirees homes. But without prop 13 you literally could not plan for your financial future (other than planning to move to to Reno).
This is one of the reasons that I'm like "Eff Dave Ramsey" on paying off the house early... there's only two entities who can ever actually "own" your house, and you are not one them. They'll just let you live there as long as you keep paying your "rent" (mortgage & property tax).
01-14-2025 | 07:26 AM
#102
Line Holder
Joined: Mar 2023
Posts: 232
Likes: 52
The way to deal with prop 13 is when grandma sells her house or dies. The tax man collects all the latent property taxes that were never (under) paid upon sale or inheritance. This would help moderate the price of homes (surely), would enable grandma to not get kicked out of her house, but would also prevent the forever-arbitrage situation that we have now, wherein people are collecting massive premiums on a property tax bill that has not been paid. It's one of the main things slowing me down from moving there: I don't want to pay someone else's tax bill from 1985.
I get the original intent of prop 13, but it's now having crazy knock-on effects and unanticipated consequences. It has turned CA into a real-estate cartel, and it's become a modern feudal state.
I get the original intent of prop 13, but it's now having crazy knock-on effects and unanticipated consequences. It has turned CA into a real-estate cartel, and it's become a modern feudal state.
01-14-2025 | 07:30 AM
#103
Banned
Joined: Sep 2016
Posts: 8,831
Likes: 499
Yeah prop 13 exists for a reason, and it's still a very good reason in 2025.
You play by all the rules, pay taxes and mortgage for decades and then the government seizes your home at age 75 because some arbirtary website like zillow posts a very large number associated your address?
I'm sure there are ways to rationalize taxes for local services without taking away retirees homes. But without prop 13 you literally could not plan for your financial future (other than planning to move to to Reno).
This is one of the reasons that I'm like "Eff Dave Ramsey" on paying off the house early... there's only two entities who can ever actually "own" your house, and you are not one them. They'll just let you live there as long as you keep paying your "rent" (mortgage & property tax).
You play by all the rules, pay taxes and mortgage for decades and then the government seizes your home at age 75 because some arbirtary website like zillow posts a very large number associated your address?
I'm sure there are ways to rationalize taxes for local services without taking away retirees homes. But without prop 13 you literally could not plan for your financial future (other than planning to move to to Reno).
This is one of the reasons that I'm like "Eff Dave Ramsey" on paying off the house early... there's only two entities who can ever actually "own" your house, and you are not one them. They'll just let you live there as long as you keep paying your "rent" (mortgage & property tax).
instead, you take advantage of low tax rates on the backs of younger people while enjoying immense real estate wealth.
01-14-2025 | 07:31 AM
#104
Banned
Joined: Sep 2016
Posts: 8,831
Likes: 499
The way to deal with prop 13 is when grandma sells her house or dies. The tax man collects all the latent property taxes that were never (under) paid upon sale or inheritance. This would help moderate the price of homes (surely), would enable grandma to not get kicked out of her house, but would also prevent the forever-arbitrage situation that we have now, wherein people are collecting massive premiums on a property tax bill that has not been paid. It's one of the main things slowing me down from moving there: I don't want to pay someone else's tax bill from 1985.
I get the original intent of prop 13, but it's now having crazy knock-on effects and unanticipated consequences. It has turned CA into a real-estate cartel, and it's become a modern feudal state.
I get the original intent of prop 13, but it's now having crazy knock-on effects and unanticipated consequences. It has turned CA into a real-estate cartel, and it's become a modern feudal state.
01-14-2025 | 07:58 AM
#105
Gets Weekends Off
Joined: Dec 2012
Posts: 2,769
Likes: 59
The way to deal with prop 13 is when grandma sells her house or dies. The tax man collects all the latent property taxes that were never (under) paid upon sale or inheritance. This would help moderate the price of homes (surely), would enable grandma to not get kicked out of her house, but would also prevent the forever-arbitrage situation that we have now, wherein people are collecting massive premiums on a property tax bill that has not been paid. It's one of the main things slowing me down from moving there: I don't want to pay someone else's tax bill from 1985.
I get the original intent of prop 13, but it's now having crazy knock-on effects and unanticipated consequences. It has turned CA into a real-estate cartel, and it's become a modern feudal state.
I get the original intent of prop 13, but it's now having crazy knock-on effects and unanticipated consequences. It has turned CA into a real-estate cartel, and it's become a modern feudal state.
Last edited by fcoolaiddrinker; 01-14-2025 at 08:21 AM.
01-14-2025 | 07:59 AM
#106
Gets Weekends Off
Joined: Dec 2012
Posts: 2,769
Likes: 59
sounds like a tough problem to pay taxes based on the size of your asset. i guess the “too bad, you should plan better” approach only applies to those born after existing homeowners.
instead, you take advantage of low tax rates on the backs of younger people while enjoying immense real estate wealth.
instead, you take advantage of low tax rates on the backs of younger people while enjoying immense real estate wealth.
01-14-2025 | 08:04 AM
#107
Banned
Joined: Sep 2016
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01-14-2025 | 08:09 AM
#108
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Joined: Dec 2012
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Likes: 59
01-14-2025 | 08:21 AM
#109
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the fact that there was a short period in a down market in which wages weren’t outpaced by housing costs doesn’t negate the fact that since prop13, there’s been an insane divergence of wages and housing cost.
01-14-2025 | 08:31 AM
#110
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Joined: Dec 2012
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have you ever heard the phrase, “the exception that proves the rule?”
the fact that there was a short period in a down market in which wages weren’t outpaced by housing costs doesn’t negate the fact that since prop13, there’s been an insane divergence of wages and housing cost.
the fact that there was a short period in a down market in which wages weren’t outpaced by housing costs doesn’t negate the fact that since prop13, there’s been an insane divergence of wages and housing cost.
This is true in the northeast as well and they don’t have a prop 13. I’m fairly confident that if prop 13 went away tomorrow and we kicked all the retirees to Reno it wouldn’t lower prices much. Maybe initially but in a short time they would be right back to higher than most states.
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