Quote:
Originally Posted by snide
What is Prop 13?  |
Prop 13 limited the rise in assessed value of properties for taxation purposes. There were cases where long-term resident were being taxed out of their homes, even when they had tiny mortgages. Assessments can be adjusted when the property is sold or rebuilt. While this seems good in general, it has driven all sorts of weird behavior; transfer of properties for the 55 plus crowd, remodels that leave a single element in place but totally change the rest of the property, and others.
At some point, there will be more renters than owners in the state, and the law will almost certainly be repealed. There are some throttles on any likely repeal, but nothing like the current 2% max in place that was based on 1976 value, or at the time of build if after 1978. I believe the initiative this year is against commercial/industrial properties of a minimum value, not residential. Given this is a democratic dominated state, it's only a matter of time...