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View Diary: California: Back in the black with progressive governance (134 comments)

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  •  I would suggest the people who brought us Prop 13 (28+ / 0-)

    didn't care about senior citizens being taxed out of their homes, but cynically used that fear to push through corporate immunity to property reassessment.

    Yes, I said immunity.  By using shell corps and multiple partners, corporations can avoid property reassessment on sale.  It's fairly routine.  For example, the Gallo company bought thousands of acres of vineyards from another wine corp and it wasn't reassessed by having a group of a dozen family members as partners.  Thus the 50% ownership change rule wasn't triggered, even though the original owners sold 100% of their property.

    The term for decoupling commercial from residential property on Prop 13 is split roll.  Right now residential property taxes are the majority paid, it used to be 50/50 with commercial.

    •  yes, because it also applied (5+ / 0-)
      Recommended by:
      Capt Crunch, KenBee, Leap Year, IM, chickeee

      to commercial properties - that's the main reason. Otherwise it did work to keep seniors in homes - it used to be impossible. I knew these schoolteachers in LA who had to move from their neighborhoods, had owned their houses like forty years and could not keep up with taxes. Which is why prop 13 passed so handily.  

      Home change ownership more frequently and rich people with lawyers are better at working angles.

      I am proud of my state.  They started collecting sales tax from businesses that made purchases on line before they were able to get sales tax on all internet purchases.  They're looking for money and their work was rewarded when the state passed a tax increase.  

      But businesses are the ones that made the most profit from Prop 13, for sure.  

      "oh no, not four more years of hope and change?" Karl Christian Rove

      by anna shane on Sun Jan 13, 2013 at 05:43:48 PM PST

      [ Parent ]

      •  Being forced to sell your home because you owe tax (2+ / 0-)
        Recommended by:
        KenBee, Leap Year

        is unconscionable. With coastal California's high home valuations property taxes, even with Prop 13, are already high. My property taxes are more than my mother's mortgage on her house in AZ.

        "The two pioneering forces of modern sensibility are Jewish moral seriousness and homosexual aestheticism and irony." Susan Sontag

        by Shane Hensinger on Sun Jan 13, 2013 at 05:49:55 PM PST

        [ Parent ]

        •  I don't think it's fair to compare (0+ / 0-)

          your coastal house tax rate to your mother's mortgage in... Arizona.
          California coastal house prices are astronomical - compare that to hosing costs in Arizona. That's just not comparing apples to apples.
          Plus anna was making a case for the Split Roll approach which would leave the approach to residential housing taxes unchanged.

        •  That's because you bought too recently (2+ / 0-)
          Recommended by:
          anna shane, madhaus

          If you were working on a 1977 tax valuation, your beach house might have taxes as low as $1k a year.

          I pay about 10x what my neighbor does, and his property is much larger.

          Fry, don't be a hero! It's not covered by our health plan!

          by elfling on Mon Jan 14, 2013 at 08:29:39 AM PST

          [ Parent ]

        •  That's actually a silly comparison (0+ / 0-)

          Look at the property tax rates, not the totals.  Property tax in California starts at 1% but then all these little agencies start adding in various pieces on top of the 1%.  If you live in Southern California, most of the newer homes have those horrendous Mello-Roos taxes which aren't even deductable, and they're high.  They're basically the builder passing on the cost of facilities (schools, utilities, etc) to the owners as a forced bond payment.

          Here in Silicon Valley you rarely find Mello-Roos taxes on homes, because we're mostly built out.  Lots and lots of old crap.  Expensive old crap.

          Now go to some places in New York and New Jersey if you want to see high property taxes.  It's not the total, it's the percentage of the home sale price that makes property taxes "expensive."

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