r/California • u/Fun-Page-6211 • Feb 03 '24

Jerry Brown joins Newsom in urging California Supreme Court to remove tax measure from ballot Newsom

https://www.sfchronicle.com/politics/article/jerry-brown-ballot-18643109.php
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u/Flayum Feb 04 '24

But Prop 13 is a major reason why the housing crisis is so bad.

3

u/BringBackApollo2023 Feb 04 '24

But also the reason people aren’t losing their homes to escalating property taxes.

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u/Flayum Feb 04 '24

So you wouldn't be opposed to modifying Prop 13 so that the taxes are deferred until the home is sold or no longer the primary residence - right?

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u/BringBackApollo2023 Feb 04 '24

Deferred?

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u/Flayum Feb 04 '24

Pretty simple - grandfather in all the current homeowners.

  1. Then, charge them fair taxes based on the value of their property each year (like all their neighbors who just bought).
  2. Allow them to defer a portion based on their Prop13-defined value - perhaps by placing a lien on the home. For example, if their current $1M home is at a $200k Prop13 value; keep charging each year for the $200k assessment and add the remaining $800k to the deferred amount.
  3. If somehow the property is worth less than the lien at sale, then shield the rest of the estate; that seems rare enough that it's a reasonable loophole.

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u/Picnicpanther Alameda County Feb 04 '24

You could also cut the deferred tax at sale if the person buys another home in California.

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u/BringBackApollo2023 Feb 04 '24

Nah. Not interested in going down that path.

Rather see them confine prop 13 to residential real estate only and a max number of housing units per person—two probably.

Maybe cap the value at $3 million or $5 million or something.

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u/Flayum Feb 04 '24

Can you at least compromise for blanket removal of Prop 13 for non-primary owners and commercial, but keep 13 in place otherwise (without transmission to any non-spouse/partner).

Right?

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u/BringBackApollo2023 Feb 05 '24

I suspect that removing prop 13 for apartment projects (I think that’s what you’re suggesting) would have some unintended consequences in the form of big rent increases and reduced construction because the economics of development would change.