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.
I agree with you completely.
We've had 30 years of rampant price appreciation in California homes, thanks in large part to this law (imo). The inequity of the system now is so extreme it is difficult to defend... and the worst part is, it is affecting the natural flow of home ownership which would take care of some of the property issues we have- lack of inventory, etc. |
