smackaholic wrote:Skimmed through the wiki blurb on it and it is pretty much what I figured. And while it works pretty damn well for someone that bought their home in 1971 and never moved, it is a disaster for everyone else. People should not be tied to a property because it would mean financial suicide through taxation if they move.
Basically you pay about 1% of the value of the home when you bought it and the assessment doesn't go up unless the house is sold or a major addition is built. You could get a re-assessment for a bedroom addition or a pool or whatever. Prop 13 was passed basically protect people from the skyrocketing property values in CA. There were old people who bought a home 30 years ago, paid it off, retired and then found themselves unable to stay in their home because of the suddenly huge tax bills. There are some special ways to increase the bill in new home developments like local school district bond issues called Mello-Roos.
Businesses benefitted too but it created some huge inequities between long time owners and younger new buyers, even in the same neighborhood. New buyers found themselves paying 3 or 4 times the property taxes as their older neighbors. It sort of put a damper on first time home buyers in the rising market.
The thing is the California real estate market has gone through probably four or five boom and bust cycles since then, so there have been opportunities to buy low and keep your taxes relatively low. Our taxes aren't cheap but my stepdaughter in New Jersey pays probably twice as much or more on a house that's worth maybe a little more than ours.
My ground mounted solar electric system, BTW, is exempt from any increased property assessment. Thanks to all the smackaholics in CA for continuing to finance my electric bill.