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You clearly do not know how Prop 13 works. First of all, new homeowners are not exempt. Secondly, it's not just homeowners, but all property owners, that fall under Prop 13.
How are new homeowners not exempt? You buy a home, the sale price establishes your assessment, and Prop 13 protects you as long as your home is not sold or transferred outside your family. Yes, it's all homeowners but historically homeowners got the primary benefits because business property on average was sold - and thus reassessed - more frequently than owner-occupied homes...until businesses adopted methods designed to afford their property the same protection as owner-occupied homes.
e.g. Five owners successively own and sell a commercial building; property is reassessed five times... One owner conveys commercial building to his corporate shell, the corporate shell is sold five times but the building is reassessed only once.
How are new homeowners not exempt? You buy a home, the sale price establishes your assessment, and Prop 13 protects you as long as your home is not sold or transferred outside your family. Yes, it's all homeowners but historically homeowners got the primary benefits because business property on average was sold - and thus reassessed - more frequently than owner-occupied homes...until businesses adopted methods designed to afford their property the same protection as owner-occupied homes.
e.g. Five owners successively own and sell a commercial building; property is reassessed five times... One owner conveys commercial building to his corporate shell, the corporate shell is sold five times but the building is reassessed only once.
You keep implying that it's just homeowners that get a perk. Per your example, a new homeowner OR commercial property owner is the same. The homeowner, in the same situation, gets NO additional tax break or exemption. NONE.
Location: Mableton, GA USA (NW Atlanta suburb, 4 miles OTP)
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Originally Posted by I_Like_Spam
It hasn't lagged behind Social Security, VA and SSI payments or the official federal COLA rates.
The federal minimum wage back in 1986 was $3.35, today its $7.25
The federal SSI payment back in 1986 was $336/month, today its $733.
Both up about 117% over the past 30 years.
Impoverished working people aren't falling behind any more than fixed income senior citizens, and are probably doing BETTER than them as old people spend a lot more on medical care which has risen by a greater amount than the cost of living in general
OK, that's a very Interesting comparison. Thank you.
Many of those older folks have other income to supplement their SSI payments, however, while many minimum wage earners do not. Even those who have multiple jobs get hit by the lack of hours and benefits that often accompany minimum wage positions.
Some older people are also working minimum wage jobs, so they get both. Younger people don't have that option.
You keep implying that it's just homeowners that get a perk. Per your example, a new homeowner OR commercial property owner is the same. The homeowner, in the same situation, gets NO additional tax break or exemption. NONE.
Before Prop 13, individual owners typically conveyed their non-homestead property to buyers (new owners) by selling the property directly. Prop 13 changed this by motivating owners to place their nonhomestead property in corporate shells in order to keep Prop 13 protection by selling the property indirectly through the shell rather than directly, which would trigger reassessment.
It hasn't lagged behind Social Security, VA and SSI payments or the official federal COLA rates.
The federal minimum wage back in 1986 was $3.35, today its $7.25
The federal SSI payment back in 1986 was $336/month, today its $733.
Both up about 117% over the past 30 years.
Impoverished working people aren't falling behind any more than fixed income senior citizens, and are probably doing BETTER than them as old people spend a lot more on medical care which has risen by a greater amount than the cost of living in general
I disagree. Most fixed income senior citizens enjoy stable, largely fixed housing costs. They have a very high homeownership rate (mortgage either retired or old and low), or are living in subsidized housing with stable housing costs tied to their income. Impoverished working people typically pay market rents in UNsubsidized housing. (Since half of all low-income renters spend at least half their income on shelter, we KNOW that a minority of low-income renters live in subsidized housing.)
Impoverished working people are falling WAY behind if they pay market rent in unsubsidized housing. In my area, rents went up 15 percent last year while there was no SS COLA.
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Younger people don't have that option.
