Tax reform impact on CA housing market (Sacramento: home, income)

[kettlepot]

Originally Posted by CA4Now

Not good.

Senate plan to scrap income AND property tax deductions would be a blow to Californians:
Senate plan to scrap income and property tax deductions would be a blow to Californians - LA Times

The columnist in the LA Times ignores the main poster child that helped enact Prop 13 in the first place, the elderly granny being forced out of her home of 50 years by out of control property taxes. Lower income taxes which she isn't paying on her modest retirement income wouldn't help her compensate for the higher property taxes that would force her out of her home.

Perhaps allowing for deferred payment of the increased property taxes upon sale of the house, or a radically increasing (10x to 15x) the homestead deduction could minimize the problem.

However, changes to Prop 13 would need to be phased in over a generation. Too many mortgages are based on appraised values sustained by the current system. A radical and swift change to Prop 13 to could repeat the banking panic of 2008.

[CA4Now]

Originally Posted by kettlepot

...changes to Prop 13 would need to be phased in over a generation. Too many mortgages are based on appraised values sustained by the current system. A radical and swift change to Prop 13 to could repeat the banking panic of 2008.

And we know that'll never happen....even a gradual phase out. There would be another taxpayer revolt.

[expatCA]

Originally Posted by kettlepot

The columnist in the LA Times ignores the main poster child that helped enact Prop 13 in the first place, the elderly granny being forced out of her home of 50 years by out of control property taxes. Lower income taxes which she isn't paying on her modest retirement income wouldn't help her compensate for the higher property taxes that would force her out of her home.

Perhaps allowing for deferred payment of the increased property taxes upon sale of the house, or a radically increasing (10x to 15x) the homestead deduction could minimize the problem.

However, changes to Prop 13 would need to be phased in over a generation. Too many mortgages are based on appraised values sustained by the current system. A radical and swift change to Prop 13 to could repeat the banking panic of 2008.

How about the Counties and Cities learn how to better use the tax money they currently get?

[Ultrarunner]

Originally Posted by CA4Now

And we know that'll never happen....even a gradual phase out. There would be another taxpayer revolt.

Not 100% true... the threshold for School Bonds went my 2/3 to 55% and had voter support.

[expatCA]

Originally Posted by Ultrarunner

Not 100% true... the threshold for School Bonds went my 2/3 to 55% and had voter support.

True, Prop 13 still exists but it is being circumvented anyway it can be.

[1AngryTaxPayer]

Originally Posted by expatCA

True, Prop 13 still exists but it is being circumvented anyway it can be.

At least we have options. Shaking down current home owners in CA to fund things many don't even use is ridiculous when half of the people living here don't pull their own weight.

[CaliRestoration]

Originally Posted by 1AngryTaxPayer

At least we have options. Shaking down current home owners in CA to fund things many don't even use is ridiculous when half of the people living here don't pull their own weight.

More to come. Just wait until Gavin Newsom gets into office (Kevin De Leon is another option but he's stuck in his sexual harassment scandal at the moment and may lose too much face from that).

I think I may sell every asset I still have in California and just never look back.

[majoun]

Originally Posted by CA4Now

And we know that'll never happen....even a gradual phase out. There would be another taxpayer revolt.

Doubtful. California's changed a lot since 13. The people of the state nowadays never met a tax increase they don't like and the public unions are securely in control.

I do think 13 will be gone not long after Brown's gone but I don't think it'll be done the right way, i.e. cutting other taxes, or even putting a value cap on how much someone could benefit from 13.(I'd be fine with 13 only applying to properties under $400K, but I have a feeling it'll be all or nothing)

[CA4Now]

Originally Posted by majoun

Doubtful. California's changed a lot since 13. The people of the state nowadays never met a tax increase they don't like...

Nope. I think that even new homeowners would revolt.

https://www.nytimes.com/video/us/100...?smid=pl-share

[phantompilot]

Originally Posted by majoun

Doubtful. California's changed a lot since 13. The people of the state nowadays never met a tax increase they don't like and the public unions are securely in control.

I do think 13 will be gone not long after Brown's gone but I don't think it'll be done the right way, i.e. cutting other taxes, or even putting a value cap on how much someone could benefit from 13.(I'd be fine with 13 only applying to properties under $400K, but I have a feeling it'll be all or nothing)

Thats just because of the artificial demographics the left has deliberately engineered by importing every moocher they could find into the state, people who are happy to leech benefits off the system and never pay enough in to cover what they cost. A lot of the immigrants come from total Third World crapholes where even California is a major improvement.

If the immigration laws we have right now were actually enforced, it would erode a lot of the support for these socialist schemes.