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I will pay more in property tax this year as a new owner than my next door neighbor has paid in TOTAL since they moved there in 1965. That's California's Prop 13. It's a massive wealth transfer from the young to the old, many of whom rent their homes and keep the profits

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Jesse Powell

@jespow

Jan 14, 2020

It's messed up. Same dynamic in effect as rent control. New buyers/renters pay disproportionate share to make up for those underpaying. Huge disincentive to sell/move because of reset, thereby constraining supply and raising price/tax obligation of new buyer/renter.

JD Ross

@justindross

Jan 14, 2020

Also disincentivized to ever allow more building. Restrict supply, get free appreciation forever

Jesse Powell

@jespow

Jan 14, 2020

Right. The cost to maintain all of the public services, security of the land, etc. continues to climb. If we can't charge market rate taxes to keep up, natural response would be build more housing to spread the burden. Can't have it both ways.

Replying to

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There should be some balance though. Just because I moved to X and now everybody wants to live near me, driving up prices, I shouldn't be immediately adjusted to the top and priced out. However, I should at least be covering my own base expenses as they rise with inflation, etc.

9:36 PM · Jan 14, 2020Twitter Web App

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Next door in Silicon Valley

Replying to

and

In most places, LOCALLY ELECTED officials decide on the city/school budget, and then the tax rate is set based the total current assessed values of all properties. Local control is good right? California had that, but then voters decided to go to a one-size fits all solution.

Replying to

and

I've thought about a fix where you allow market rate adjustment every 5-8 years but any increase phases in over 1-2 years. Protects people from sudden hikes in rent but also allows the market to properly adjust over time.