CA: Property taxes to increase despite falling home values

San Diego Union - Tribune ^ | 3/16/09 | Roger Showley

[Eric in the Ozarks]

Its the Wellstone Principle.

[TCats]

“We don’t have a choice,”

LOL - The usual statement from one of the usual suspects. The words “Cut Spending” are not in their vocabulary.

[Oldexpat]

the Prop 13 system is ok. It locks the property tax into 1% of the purchase price and goes up a max of 2% a year.
At least you know going in what the tax will be so that you can make your decision. The POls don’t like it, becuase it is a firm system. In these times, the 2% increase is a given, but not unexpected.

[elpinta]

“That would produce a projected $91 million in additional revenue...”

Perhaps, but maybe not, as some people will just walk away if they don’t have any equity. Not sure what the banks would do.
Check Florida, specifically Fort Meyers area.

[OCCASparky]

As (still) out of whack property values are in CA, at least it's not the sticker shock we get sometimes in NH.

I've owned my home for two years up here, and in those two years I've averaged 8 percent increases each year. God help me when my property is reassessed in 3 years.

[HamiltonJay]

Property taxes in Cali are so far below what they should be because of this cap law, that property values would have to fall 75% before most homes would see their tax rates not go up in a given year. You can’t lock tax increases at 2% while the values are going up 40%, and think that when things start to go down taxes will too, you’ve set yourself up to where taxes are so far behind values that it doesn’t matter that values are falling, they are still far more than the value they are being taxed at.

[Joe Boucher]

Even if ya elect some butt head who says they plan on reducing taxes and insurance they get elected and poof, so much for those promises.
Right there Chrlie Crist?
Ya lying p.o.s.

[HamiltonJay]

Hahahaha.. its also part of the reason why California schools are ranked DEAD LAST in the nation.

You create an artificial taxing structure, that doesn’t tie remotely to reality, and then the services funded by it are woafully underfunded and continue to deteriorate.

While I hate pols, the prop 13 system is laughable, its not sustainable and never was.

[TCats]

Yeah, I lived in Ca and owned property. Jarvis-Gann was a Godsend. The spenders did their best to get around it, as the article says. Since there was a cap on Property Taxes they raised every other Tax/Fee they could. As stated, the words “Cut Spending” are not in their vocabulary.

[RC2]

If the values of homes has gone down, taxes should also go down. Taxes are based on the value of the homes. People need to contact their counties and demand that they lower their taxes.

[pepperdog]

“That would produce a projected $91 million in additional revenue to the county, cities, school districts and other jurisdictions.”

Bloody turnip!

[El Cid]

Property taxes in Cali are so far below what they should be...

Property taxes should be zero.
Either you have the ability to own your house, or you don't. The Property tax system sets up the Government as your landlord. Miss a payment, and the landlord evicts you... That is why Proposition 13 passed in the first place. Elderly homeowners could no longer afford to pay the Property taxes that the government was assessing on their houses.

The government can gouge what they want from Income taxes and/or sales taxes - but they should leave the primary home of residence alone.

[HamiltonJay]

Well, arguing what should be may make you feel good, but it isn’t going to change anything.

[bgill]

I’ve had 10% increases on my home in TX for the past dozen plus years. It’s not slowing down.

[A CA Guy]

This kind of makes sense.
Probably 75% of the homes or more did NOT change ownership and are under the old Prop 13 laws.

Basically Prop 13 was that you tax property at 1% of value starting with purchase price and you cannot clime the tax more than 2% of what was taxed last year.

One home I have was bought back when things were $45k.
Today if I bought it my yearly taxes would be $7000, but under Prop 13 they are going to be about $1100.
The $1100 next year goes to maybe $1140 and that would be the increase spoken of in this article.

[calcowgirl]

Well, arguing what should be may make you feel good, but it isn’t going to change anything.

I think you were the one arguing what taxes "should be."

Property taxes in Cali are so far below what they should be...

[444Flyer]

My property has fallen another 28% in the last year alone. I went through HE double hockey sticks last year at the Assessor's office getting mine reduced and the bureaucrat I dealt with still put my assessment at $40,000 over what it was actually was worth at the time even though I had PROOF stating otherwise. When I politely protested his incorrect assessment, he smugly told me if I had a problem with his number I could appeal it which could take up to a year to be heard by a board. I said sarcastically, “Yeah, the numbers always work in the favor of the House don't they?” By the look on his face I could see he knew what I meant by it.

I'll be going back to get another reassessment this Spring. I'll probably have to see “Mr. Wonderful” again who couldn't hold a job down outside of being a government jerk.

[RC2]

It would be interesting to see the value he placed on his own property. Besides, how do they come to a value on your property? Even if it took a year, go ahead and file a protest. I would bet they would reduce your property value so they don’t have to face you in public.

[OCCASparky]

Disagree—Prop 13 was sustainable. The spending in California is what’s 1—unsustainable, 2—killing California.