I have issues with caps on property tax given what Prop 13 has wrought in CA, but other than that I agree. I think capping property tax inhibits the movement of properties that makes housing freely available. If you cap taxes, you should cap home values. It makes no sense to say a person with a million dollar house only has to pay the 19…
I have issues with caps on property tax given what Prop 13 has wrought in CA, but other than that I agree. I think capping property tax inhibits the movement of properties that makes housing freely available. If you cap taxes, you should cap home values. It makes no sense to say a person with a million dollar house only has to pay the 1984 tax value. Why on earth would they ever move? Why would they be open to anything that would lower their home value?
Sorry, I should have been clearer: the year-over-year increases should be capped, so that landlords can’t point to those as an excuse to hike rents too quickly.
That said, I’m just spitballing and don’t have a ton of attachment to the idea. After all, eventually the level will get high enough to drive less affluent people out, I should imagine, so it doesn’t exactly solve the problem it’s trying to solve so much as slow it down.
I have issues with caps on property tax given what Prop 13 has wrought in CA, but other than that I agree. I think capping property tax inhibits the movement of properties that makes housing freely available. If you cap taxes, you should cap home values. It makes no sense to say a person with a million dollar house only has to pay the 1984 tax value. Why on earth would they ever move? Why would they be open to anything that would lower their home value?
Sorry, I should have been clearer: the year-over-year increases should be capped, so that landlords can’t point to those as an excuse to hike rents too quickly.
That said, I’m just spitballing and don’t have a ton of attachment to the idea. After all, eventually the level will get high enough to drive less affluent people out, I should imagine, so it doesn’t exactly solve the problem it’s trying to solve so much as slow it down.
Gotcha, yeah that makes more sense.
Prop 13 in fact caps the increases in valuation, just at such a low rate that they fall behind actual prices immediately and can never catch up.
(Signed, affluent Bay Area homeowner paying 10x the property taxes of all my neighbors.)