The effective California property tax as a percentage of personal income has increased since 1979. So prop 13 did not stop the property tax from growing faster than our income. Clearly it’s not a revenue problem, it’s a spending problem.
A fixed property tax rate of 1% is very dangerous for Califonia citizens. That means that property tax doubles without prop 13 during the last 5 years when your income is far from doubling. This is exactly why prop 13 came into existence.
So the reason for ever increasing state income/sales tax is not prop 13, it’s just the government spending increases faster than the aggregate personal income
Personal income in California — an approximate measure of the size of the state’s economy — has grown at an average annual rate of 6.3 percent since 1979,” Taylor’s 2012 report says. “Over the same period, revenue from the 1 percent property tax rate has grown at an average annual rate of 7.3 percent.”
I am glad I moved to San Diego. Here they won’t vote for a property tax increase unless it is absolutely necessary. My property tax rate in San Jose was 1.327. Here it is 1.125 and there are no proposals for more taxes in the near future. In San Jose they vote for every tax increase put in front of them, probably because they make such good salaries.
Even with 1.25% rate of property tax, the owner pays the equal amount of purchase price (if someone bought home at 1M) in 40 years ( 100% divided by 1.25% = 40 years).
This is almost like interest free 40 years loan from government that he/she needs to pay.
Property tax is much worse than mortgages. Tax lasts forever and you will need to pay property tax even if you are 200 years old, that’s 150 years after your mortgage payoff
If you bought a 150k house in 1979, your property tax was $1875 per year. But today your property tax would become $25k without Prop 13 protection. For most middle class seniors, $25k property tax would be more than their income from social security.
Without prop 13, retired middle class homeowners would lose their home by paying huge amount of property tax to support nice pensions and medical care for retired government employees
Well, once the tax reform is passed and property tax can’t be deducted anymore, people will think a little harder before voting yes on property tax increases.
There’s some ignorance when it comes to property taxes. We, including me, think that is just paying PTs. No, it involves so many “propositions” to pay for whatever in our communities. And, as you see, this administration is bent on not helping your school system for whatever reasons. Our PTs are in some amount, going to help schools and municipal expenses to help people.
So, before you vote on property taxes, vote thinking who are the ones in Washington DC hurting you.
The assessed value of the property goes up by 2% every year. It would double in just 36 years due to compounding like interest. At 1.25% property taxes, it would take only 49 years for you to pay the value of taxes that you paid for the property. But then think about the value of a property you could have bought 49 years ago and what it is worth now and it is still a great deal.
Sheriff is smart to account for the exponential growth of property tax. There has to be some tax limiting measures to avoid a collapse of our democracy. An irresponsible tax growth will eventually cause work ethic decay and economic stagnation or decline
