Lizzie, the way I usually see the argument framed is that people fear all property taxes would go to the highest level currently being paid if prop. 13 were revoked. That and the fear that granny loses her home. You're right that grandfathering the windfall to relatives would be a mistake and just prolong the inequity. That the transference of the low rates to others isn't allowed is probably the saving grace of a stupid proposition. Still, this is but one piece of the puzzle, not the whole reason for the housing costs here.
A very common sense solution would be to adjust tax rates so that they do not increase the overall intake from the current level, but raise the rates on those getting ridiculously low assessments and lower them on the new, incredibly high assessments, so that it's more fairly administered across the board. Then cap the annual increases for all, as we do now. They say this would force people out of their homes. Well, what about those who will never be able to afford a home here now ? The long time owners with low taxes could sell their house at a huge profit, take the tax free gains, and downsize as they get older. They've been free riding on the backs of newer buyers for quite awhile now. I'd much rather be the senior who has to decide to sell my paid-off house, walk away with huge tax free capital gains, and move to a smaller place paid for all in cash, than the 20-somethings looking at $500-$600,000 starter houses plus higher assessments now.
Not likely to happen, though. Long time homeowners have too much voting clout.
By the way, California just passed a new law in January to facilitate the removal of roadblocks to building in-law units on existing properties. Cities are starting to review it, and will re-write some zoning codes to implement, but in different ways that work within the cities' overall codes, I presume. I talked to a local planner about it, said they're just starting to review, and would be awhile before they undertake specific changes to address this. I think it's a step in the right direction though. |
