Public Employee Unions want to change Prop. 13 so busness property tax goes up & up more every year. (Oakland: new construction, gated)

[Csonka]

Originally Posted by TheFlats

So if you bought a house for 600K in 2007. In 2012 you would have trouble selling it for 300K. You should be taxed on the 600K value of the house instead of the "unrealized" 300K?

I said that property taxes should be based on the value of the property. You said that's what Prop 13 is. I said no. Now, using the last refuge of a losing argument, semantics, you're telling me that no one can truly define the value of a house? If that were the case then the HELOC industry would be in big trouble, haha.

Then you can appeal your assessment to have it lowered to $300,000

[mgforshort]

If property taxes rise substantially, my prediction is:

Owners of rental homes, also apartment buildings, will jack up the rents to cover their own costs.
If the rent increase isn't sensible due to market conditions, the owners will sell the property to get out of a difficult business before it becomes even more difficult.
Higher rents, less rentals, all will hurt the tenants, who are the most likely group to vote for any tax increases.
The only winners are the government employees in the form of a better paycheck and pensions.

[Ultrarunner]

Originally Posted by mgforshort

I have no complaint paying our current tax of $ 2,600-2,800 on a 1700 sq.foot, 60 year-old house, occupied by two people and a dog.
But I resent it that the tax is going up every year by 3-4 % while we don't receive 4% more services.

Heck, we don't receive anything more considering our income from social security never goes up, but it goes down, due to inflation and Medicare, health insurance and home insurance all rising much faster than the level of inflation.
The problem with prop 13 is that there is no protection from the added costs slapped on top of the tax, all coming from various bond measures to build athletic fields and low income housing, whatever the liberal, generous (with other people's money) dreamers can come up with.
We pay $ 172 for things not related to property taxation, and it goes up and up, as it is the most convenient way to cover things which might benefit a few, but paid by the home owners.

The protection is it does take 55% voter approval to build or renovate a school and 2/3 for everything else...

I do feel you pain as the voters in my city are very generous... the tax rate worked out to 1.8% due to generosity...

Still hard to imagine my East Oakland home that is 60 years old and 1700 square feet will soon have a $1000 a month tax bill

[Ultrarunner]

Originally Posted by Csonka

If R.E. taxes go up, prices will go down, and then everyone will be whining about that

If prices drop too much people in homes will start walking away as they did in droves in 2009-12

[expatCA]

Originally Posted by Ultrarunner

If prices drop too much people in homes will start walking away as they did in droves in 2009-12

Or no homes on the market because only someone stupid would sell for a loss.

[mgforshort]

"Still hard to imagine my East Oakland home that is 60 years old and 1700 square feet will soon have a $1000 a month tax bill." posted by Ultrarunner

For that kind of a payment they should wash your car and cut your lawn weekly, plus a free pizza on Friday nights.
Just being curious, are there potholes in Oakland or the streets are all paved with marble?

[CaliRestoration]

Originally Posted by TheFlats

Removing Prop 13 protections will not drastically reduce housing prices but it will most certainly not raise them. That's just a boogeyman argument and totally economically illogical.

Uh, not exactly.

Sure it would not have the effect of raising housing prices, but it would have the effect of putting inflationary pressure on rents. That's the demographic who usually gets hit the hardest with these type of taxes since, I as a landlord of multiple properties, will simply pass as much of the cost of those taxes to my tenants.

[Csonka]

Originally Posted by Ultrarunner

If prices drop too much people in homes will start walking away as they did in droves in 2009-12

Yep

A lot of people will jump a sinking ship

[Csonka]

Originally Posted by expatCA

Or no homes on the market because only someone stupid would sell for a loss.

Not necessarily a loss, but not as much as you may have been hoping.

A lot of homeowners are like me and bought some time ago and will see a gain either way.

[CaliRestoration]

Originally Posted by expatCA

Or no homes on the market because only someone stupid would sell for a loss.

Yup, it could constrain supply since some might decide to stick it out rather than move due to not having enough equity to jump away.

People think market actions like "repealing Prop 13" occur in isolation, the truth is they don't, and it's more like a row of dominos that touch and impact other market events.