Is anyone leaving California or wanting to leave?? (Los Angeles, Oakland: low income, apartment)
Please register to participate in our discussions with 1.5 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Location: Miami, Florida / Marina del Rey, California
146 posts, read 174,764 times
Reputation: 93
Born/reared Florida east coast small town. Drove to LA in 1989 seeking greener grass... Worked every job out there, even painted curb numbers for donations. Did some acting. In 1996 left LA drove back Florida got in real estate, semi-retired 2004. 2008 officially retired at 44. I like So. Florida but sometimes miss my high & dry days in SoCal.
I could buy a $2M Crib in Malibu if I wanted.... instead own a modest Condo in the best area of Miami. I travel and enjoy life....
Prop 13 has nothing to do with age... although tenure is generally a benefit. Prop 13 is based on Fair Market
Age is not explicitly a factor, rather implicitly. Prop 13 allows one's property tax rate to decrease as a percentage of market value over time. Older residences that have owned their homes for decades pay ridiculously low property taxes. For example, I have an older relative in LA that pays $600. What would a young family pay if they purchased the house? Around $4,000.
Quote:
Originally Posted by Ultrarunner
Prop 13 is simple... the property tax paid is based on your purchase price plus an annual factor added for inflation yearly and voter approved debt.
Except that the annual factor is lower than the average rate of inflation...
Property taxes are the best form of taxation, but rent seekers will always prefer increases to productivity taxes. It allows them to continue to suck blood from the productive components of society.
Prop 13 is a joke and a big source of problems for California.
Age is not explicitly a factor, rather implicitly. Prop 13 allows one's property tax rate to decrease as a percentage of market value over time. Older residences that have owned their homes for decades pay ridiculously low property taxes. For example, I have an older relative in LA that pays $600. What would a young family pay if they purchased the house? Around $4,000. .
All we can do is go with the best information at the time... I have years of earning ahead of me whereas an older person doesn't. The older person paid for the very infrastructure I use for free before I purchased property... the streets, parks, libraries, etc... where all paid for those that have lived here many years before I bought my 55 year old home.
It's about choice, no one forced me to buy and no one should force an older person out of their home of decades either over property taxes.
Property Value established by any means other than a bonifide fair market transaction is nothing more than an opinion... I would never want a return to the system where the Assessor's opinion set Property Taxes... too much room for corruption as was the problem in several counties at the time Prop 13 became law... one Assessor even commited suicide and several where sent to prison over sweetheart tax deals... no thank you.
Thankfully, the voters of California realized this more than 30 years ago and swept Prop 13 into law.
Quote:
Except that the annual factor is lower than the average rate of inflation...
Except that Prop 13 provides the mechanism for increasing taxes above any baseline limit... my tax rate is nearly 50% higher than Prop 13 minimum because the voters made it so... and I also pay more than my neighbors because I choose to pay more for my home. As for inflation... buyers today are paying less then buyers paid 5 years ago in some cases... appreciation isn't a given... yet Prop 13 provides for a 2% yearly increase even in times of deflation.
Quote:
Property taxes are the best form of taxation, but rent seekers will always prefer increases to productivity taxes. It allows them to continue to suck blood from the productive components of society.
Prop 13 is a joke and a big source of problems for California.
Property Taxes are the worst form of Taxation because people need food shelter and clothing... the three essentials of life... California doesn't tax food because people need to eat... well people need shelter too.
As a rent seeker, I have tenants that have been with me for over 20 years and I have not raised rents on any of my residents for years... even though taxes and added City Fees continue to increase.
I tell prospective tenants that I do not arbitrarily raise rents and they can expect years of no increases as long as they don't abuse the property, become a problem in the community and meet their rent obligation.
Over 30 years... I must be doing something right.
Sucking Blood from the productive of society defines oppressive taxation... in some cases confiscatory, to the point of forcing elderly from their homes of many years.
Last edited by Ultrarunner; 02-21-2010 at 10:11 AM..
I would never want a return to the system where the Assessor's opinion set Property Taxes... too much room for corruption as was the problem in several counties at the time Prop 13 became law... one Assessor even commited suicide and several where sent to prison over sweetheart tax deals... no thank you.
Is this (assesor opinion) a big problem in other states?
This will depend greatly on when you purchased your CA home. Prop 13 allows older residents to unfairly keep rather low tax rates at the cost of younger residents. Also, you're living in the desert. Homes are much cheaper out there than where the majority of people are living. You can't compare the costs in the California desert to San Antonio. Its apples to oranges, compare it to the Texas panhandle.
Regardless, you should be comparing your total tax burden not just property taxes. Texas has no income tax where as California has a rather high income tax.
Ah, yes - fairness. The socialistic mentality that is destroying our state and country.
Prop 13 allows people to stay in their homes that they've paid for. Otherwise, politicians, who can't seem to stop spending money, would constantly raise taxes to pay for their inability to run the state efficiently.
I'm so sick of people blaming Prop 13 for this state's problems, instead of putting it at the feet of the real problem - spending money we don't have.
I have a question about "fairness", since you brought it up? Do you think it's "fair" that state workers retire with paychecks that are the same as what they made when they were working? Paychecks that they get after having paid in a fraction of their worth? Just curious.
Ah, yes - fairness. The socialistic mentality that is destroying our state and country.
Prop 13 allows people to stay in their homes that they've paid for. Otherwise, politicians, who can't seem to stop spending money, would constantly raise taxes to pay for their inability to run the state efficiently.
I'm so sick of people blaming Prop 13 for this state's problems, instead of putting it at the feet of the real problem - spending money we don't have.
I have a question about "fairness", since you brought it up? Do you think it's "fair" that state workers retire with paychecks that are the same as what they made when they were working? Paychecks that they get after having paid in a fraction of their worth? Just curious.
Having lived in CA all my life excluding the last five years in AZ, I have heard the cries of greedy tax and spend politicians wanting to get rid of Prop 13 for too many years. It saved my folks from having to leave their home many years back. Get rid of Prop 13 and you will soon be another New Jersey with $14,000 a year property tax bills on a 1,500 sq ft shack. It may be time for a tax revolt.
Please register to post and access all features of our very popular forum. It is free and quick. Over $53,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 1.5 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
