New Prop 13 Tweak Could Save Homeowners Thousands
The SF Business Times reports that changes may be afoot for California's Prop 13. Prop 13, as you may recall, essentially freezes a property owner's tax bill to approximately the level it was when the property was purchased. It was put in place to assure people that as property values soared, they would not be forced to move.
The problems this creates is that adjacent homeowners pay for the same government services, but some homeowners pay 15 to 20 times what their neighbors do. Indeed, those that are getting the lower tax bill are causing those that come later to pay artificially high tax bills to make up the difference. The other consequence is more about the housing crisis - many seniors, how would like to move to lower density, smaller, cheaper housing can not afford to do so. Some tweaks to the law have allowed some seniors to move to some counties.
A new ballot measure (has the signatures, but not on the ballot at this writing) would allow California homeowners 55 or older to sell their home and maintain their current tax base provided by Prop 13. These homeowners would be allowed to do this as many times as they wish within the state.
The theory here is that those who retire would like to downsize and move further away from the hustle and bustle of their working lives, freeing up housing for those who need to live amongst the hustle and aforesaid bustle.