dark_stranger Posted May 4, 2004 Report Share Posted May 4, 2004 (edited) Hello all, I am currently in a real estate economics class here in SF. Last night one person did a short presentation on a law that the State of California has, known as 'Proposition 13'. This unlucky number refers to a law that limits the increase in property taxes to 2% per year. However, if the house is sold or otherwise transfers ownership, a new assessment is done, establishing a new baseline on which the 2% increase will apply thereafer. More on this law can be found here: http://www.calproptax.com/ This has led to a perceived inequity between the property taxes of those who have owned their houses for many years (before massive appreciation occurred) and those who buy houses now. It is my understanding that the law is meant to help senior citizens by reducing their tax burden, which if scaled to current value of their homes would in many cases exceed their mortgage payments. The question I pose is this: given that property taxes are wrong to begin with, is it a good idea, bad idea or neither to give certain people an exemption based on 'need' or timing of their home purchase? I have my own views on this, but I am curious to see what others think. P.S. - is this the right place for this discussion? Sorry if it is... I'm new! Thanks! Edited June 25, 2005 by softwareNerd Quote Link to comment Share on other sites More sharing options...
Scott_Connery Posted May 4, 2004 Report Share Posted May 4, 2004 I think that if you apply a violation of peoples rights unfairly. I.e you target only some people for violation (new home owners in this case) then the government is doubly wrong. They are not only treating everyone unfairly, but they are treating a specific group who have done nothing wrong especially unfairly. Quote Link to comment Share on other sites More sharing options...
felicity Posted May 4, 2004 Report Share Posted May 4, 2004 Even without this rule different people pay different amounts, depending on the value of their homes. A person who buys a $400,000 home pays less than the person who buys a $700,000 home. Using the date of purchase in the computation is simply, another such rule. Before discussing the fairness of any such rules one has to establish the basis for the payment / tax in the first place. In a particular city, the mafia takes protection money from street vendors. They are sift on some of the older vendors who have been around for many years. Are they being fair? Quote Link to comment Share on other sites More sharing options...
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