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Politics : Bill Clinton Scandal - SANITY CHECK -- Ignore unavailable to you. Want to Upgrade?

To: MulhollandDrive who wrote (4695)	9/22/1998 2:21:00 PM
From: Lizzie Tudor	Read Replies (1) \| Respond to of 67261

bp, yes thats true. What happened, (and there are others here that have a better perspective on this I think) is in the late 70s real estate started to escalate here. And the legislature was out of control and kept lumping every single item that ever came up onto property taxes. And some people were more or less pushed out of their homes because of it, this was 1978. There was a tax initiative called Jarvis-Gann (aka proposition 13) which locked property taxes down at the purchase price of the house except for a 1%/year increase. Well that was fine for about 5 years, but as the 80s came and property values increased there are huge discrepancies between what I would pay in taxes vs. someone who bought a house in 1983 etc. In essence, there is no supply on the mkt in California because of this law. And many people are millionaires because of it, landlords etc. even though they have relatively small incomes. Its a gross inequity. Michelle

To: MulhollandDrive who wrote (4695)	9/23/1998 1:20:00 AM
From: Zeuspaul	Respond to of 67261

OFF TOPIC are you saying that older residents on fixed incomes are not selling their properties because of their current real estate taxes are "grandfathered" and are therefore resistant to buying new property as it opens them up to much higher tax rates? If true, that does seem counterproductive. Not necessarily true. I am not sure of the specifics but in many Southern California counties the law has been modified. A 55+ year old homeowner can take his/her tax basis with them if they stay in the same county. This would affect the type of housing situation that Michelle describes. In fact the elderly in a million dollar house would have an incentive to leave the Oracle rich territory, pocket the cash and buy a nicer house at a lower cost in a different location and keep their original tax basis. The tax base does not increase one percent per year, The tax base increases two percent per year. Regards Zeuspaul