Because if prop 13 is repealed..after 15-20 years of work, the retired tech employees can’t afford annual increase in taxes either.
Or is this just to get seniors to leave Bay Area by making it unaffordable for them?
Somehow in the 49 other states that don't have Prop 13, people aren't priced out of their homes from taxes.
There are other options. There are home equity lines, reverse mortgages, or even freezing tax payments and adding them as liens on the property at time of transfer.
But even if you're worried about that, you should still support repealing prop 13 on anything that isn't an owner occupied single family home.
There is no reason a rental property should have tax protection, or a commercial property.
Allow me to introduce you to the great state of New Jersey. People here are absolutely priced out because of the property taxes, especially older retired couples and low earners who may have a house but hit hard financial times. A $400k house will probably have property taxes over $10k.
Houses that were 50K 10 years ago are now 400K with a 2.5% property tax rate. If they are renters, then their rent went up to cover the taxes.
In my area houses are up to 1m+ which results in property taxes of 25K/year so even middle class families and retirees are getting taxed out.
The city is trying to approve density city wide and the NIMBYS are trying to block it. Ill laugh when they all get taxed out 10 years from now.
An example: Consider a 75 year old senior couple on fixed retirement income living in their fully paid 40 year old home. They paid the 300k mortgage and the house is worth 1 million.They raised their kids who attended public schools for 12 years each.
Property taxes are used for public school education. 45% of California budget is for schools. Property taxes go into a common pot and distributed to different school districts. It averages between 10-15k per student.
Schools have taken over nannying and provide more than basic education. They take on services that are generally the area of social services and social workers.
For example, if there are more non native English speaking families with children in school, the district gets extra funding. But more often than not, the children who know English as second language don’t come from high income areas..that is..their homes don’t contribute a lot of property taxes to the pot. Renters get the best deal because they don’t have to pay property taxes in the best school districts and often these are older properties that enjoy low taxes.
The problem here is that homes are roofs over our heads. It’s not speculative investments. They are not funding sources for the waves of new migrants and their children.
To ask 75 year old retirees to pay more taxes on property they haven’t profited from is heartless. That you need senior citizens to educate this working generation’s children’s education is shameful. It just means that the current generation doesn’t know how to manage their finances. It’s like someone living off their ageing parents pensions even when they are earning fat pay checks because they think their parents don’t need the money.
In my observation..those who ask for prop 13 to be repealed are usually : 1. First time house owners or renters 2. Transplants to California from other states that are usually economically depressed..almost always suffering from CA sticker shock 3. In their first high paying jobs 4. Don’t have parents living in California 5. Don’t have parents who were home owners in California 6. Really bad at financial management.
It boggles my mind when I see 25-30 year old Silicon Valley tech workers crying for prop 13 repeal and want you make seniors on fixed pensions homeless. They are people who are looking into other people’s homes and coveting what they think they are entitled to...
Most of the property taxes are going to fund public schools. If you want affordable housing, turn your ire towards parents who have kids and are not willing to pay for their own kids education...Instead of demanding from seniors who have paid their dues and have built the public schools and roads and infrastructure of California with their taxes when most of us weren’t even born.
I am deeply ashamed to be part of Silicon Valley that is disrespectful to the senior citizenry. On one hand, they want homeless people from all the states and undocumented immigrants to get free services and be taken care of..just when you think that such charity is laudable...on the other hand they are demanding to repeal prop 13 which will create more homeless seniors and retirees will end up without a nest egg for their safety net making them more vulnerable and even dependent on the state for services. How is this in any way logical or rational..even setting aside the fact that it’s definitely not ethical or moral.
Example: a 1 million dollar home rents for about 3500-4000/month in my Bay Area city. 10% goes to management company. And insurance is another expense, it’s not a lot.
Assessed value of a million dollar at current rates would be around $12k without parcel taxes or special special taxes added which can be another 3-6k extra.
It leaves about 2000-2500 as income. Assuming the home is completely paid off. If there is a mortgage or if it’s refinanced, there won’t be much of an income.
Rental income is considered income and subject to income tax.
Rents will RISE making housing even more affordable if people 13 is repealed. Any form of taxation is only designed so the house..aka the govt...wins. The house always wins.
Lobbies with housing interests are simply making home owners the villains...while the problem is lack of public transport, infrastructure and proper city planning and commercial zoning.
It’s easy to make seniors(who have no PR companies or lobbies) the villains or hard working people who have one or two rental properties as income nest eggs because they don’t have pension funds or stock options.
The Silicon Valley tech workers act like they are sharing and passing around a single brain cell amidst themselves when it comes to housing issues in the Bay Area. It’s mind boggling how easy it is to manipulate people into a mob when a nameless faceless villain who can’t be identified is painted to be the victimizer.
Your taxes go up, but so does your debt service. I live in a secondary market of a very high tax state (NY). My effective property tax rate is about 1.8%, almost double what you see in NYC. But... my housing value is much lower. My home in NYC would be well over $1.5M, and is a fraction of that. It’s better to pay the tax.
In terms of old people, the answer depends. Usually people sell because they cannot maintain the home, want to be near family, or have medical issues. I’ve never heard of anyone (other than a farmer) who moved because of property tax.
If people 13 is repealed, older people will have to move because they can’t pay their taxes on their fixed retirement incomes.
NY is not CA. We are a different market.
People won’t realize this until they get older or have lived with older family members/friends. Older family members are also a great source of support and mentorship for the younger generation. It is not always about money.
A million dollar check won’t speak to you or hold your hand. Most of the million dollars will go to taxes and then barely paying for the next roof in a not well serviced and strange new zipcode. It’s a downgrade. Why would anyone want to downgrade their lives and walk into uncertainty when they are old and vulnerable?
