Read marcus’ reply.
I posted a chart in the Prop 5 thread. Seniors can already do that. Prop 5 allows them to buy houses more expensive than their current home’s market value and keep the low tax basis.
So if someone bought a SF house for 500K 20 years ago, sell it for 2M and buy a mansion in PA for 4M, we should allow them to move the 500K tax basis over?
We need to remove Prop 13 and all its derivatives, not bolting on even more benefits.
3 Likes
Not in disagreement, but let’s be honest, I can take that stance and say we should then vote YES on 10. Like you said, why be short sighted. Give back to others… Come on!!! Either be an owner or step down I say!!!
If you said iprop 5 will increase and freeze up the supply of homes, then it’s a no on prop 5. The housing market is very week now , more inventory means price will drop further with interest rate keep increasing
No. There is a large body of academic research saying rent control is bad for the people it’s trying to help. It’s bad all around.
1 Like
Remove prop 13 and you’d get people who’s property tax bill is bigger than their mortgage. Does that sound like home ownership?
The other 49 states don’t have anything like Prop 13 and they manage. How?
That’s actually a lie. Many states have rules that limit property tax increases. They vary from limiting the increase in assessed value to exempting the first $xx of value from property taxes.
2 Likes
Prop 13 is good and reasonable to protect older home owners. But prop 5 is too much and seem unfair to all other age group accept home owner older than 55.
1 Like
You don’t know the obvious implication of my statement?
Here’s how I modeled it:
-
I doubt anyone that bought a long time ago in a prime area is going to take advantage of prop 5. There’s nothing in it for them (because of the tax implications). It would make sense for them instead to rent out their primary residence and buy something in lower cost area if they have an income issue
-
If you are someone who is really well off, you won’t sell. You can already take advantage of generational skipping trusts to pass your property to your childred/grandchildren and just buy what you need
-
if you are decently well off, this actually gives you a way to do new tax shenanigans. I will give a personal example on how I can use this to my advantage if this passes. I have a TH in SJ bought many years ago and my current primary. When I get close (in age) to qualify I would do the following. Move back into my TH and rent out my primary. Then after 2 years, sell my TH and buy a nicer primary which would be fixed at the lower tax base of my old TH. Nice I got to move to a nicer primary later in life when I might not have otherwise been able to because i don’t want to service the property tax
TL:DR; Prop 5 is written in a very appealing way that it will unlock the property market but from the different use cases I can see (for at least Bay Area residents) I don’t see how it will do it. If anything it will be taken advantage of to drive prices higher
2 Likes
You can limit but the limit has to be close to being reasonable. How about linking it to CPI ex housing?
There are also quite a few academic studies on Prop 13 and its effects have been disastrous. It’s a negative feedback loop. Prop 13 makes housing more expensive which in turn makes repealing it harder because of the sudden jump in property tax if repealed.
But at the minimum don’t add to it.
2 Likes
Go get your US citizenship already 
1 Like
How about just do a Prop 5 for everyone? Everybody pays super low property taxes and watch our state go to hell. Why restrict the fun to 55+?
3 Likes
Let’s vote NO on prop 10! Leave prop 5 alone
But Prop 10 technically is not doing away with rent control. All it technically says is put the control back into the local jurisdictions to decide. Why can’t someone argue that that is fair. Let the local jurisdiction decide on what’s best. See, you can’t have your cake on both people!!!
No, I don’t want local control. Just like I don’t want local control on zoning.
Because most voters are lazy, stupid or both. I am working on my ballot right now. Do you know how much research I need to do? I doubt many people will put that much effort into it.
These direct ballot measures are the main reasons of California’s problems. Dumb and lazy voters having too much power.
3 Likes
While we are on the election beat… Can the Republicans at least put forward some better looking candidates?
Dem:
Rep:
Another race. Dem:
Rep:
Come on people! These old geezers look like they are going to drop dead any minute…
1 Like
I repeat, if you are an owner you should vote pro-owner all the way. You are doing a disservice to those owners who might have a slightly different need from yours yet you stabbed them in the back because oh it doesn’t apply to you necessarily.
We all row in one direction together or we will fail…
It could be indexed to CPI instead. I don’t see how you think it’s robbing local government’s of income when even with prop 13 local property tax revenue is increasing at 5%+ a year. Even with prop 13, property tax revenue is increasing faster than CPI. You idea to abolish prop 13 and index to CPI would actually REDUCE local property tax revenue.
Demand greater than supply makes housing more expensive, and there’s lack of supply due to zoning and code restrictions. Other areas have had bigger population booms than SF, but their housing prices haven’t sky rocketed. SF has grown by 10% since 1950. That’s nothing. The US population has doubled, so why has SF housing increased so much more than the national average?