Agreed.
Propositions regarding taxes suck. Gives the goobers in Congress an easy out.
Prop 19
- Thread starter kuksul08
- Start date
Agreed.
Propositions regarding taxes suck. Gives the goobers in Congress an easy out.
Eldritch
is insensitive
Yeah, that is still common practice in a lot of other States.
berth
Well-known member
A major factor of Prop 13 was seniors on fixed incomes getting assessed out of their homes. Prop 13 limited increases to 2%. Before they could swing more wildly. Pity the poor senior during the run up to 2008 were it not for Prop 13. Pity the poor senior in the Bay Area.
I didn't vote for Prop 19, but that doesn't mean there isn't an issue. I just didn't care for 19.
Another loophole in 13 is corporations buying other corporations, but keeping the other entity alive as a holding company for their real estate, so the property never "changes hands", and the tax rate stays. Honestly, that stinks.
I would agree with the early article, that children keeping inherited homes as income properties shouldn't necessarily benefit from the reassessment exception.
That's tricky, because we all get that benefit today. Buy a house, keep it, rent it out, buy another, you get the exemption on the first house.
Maybe there should be an exception for income properties. Mind, this has a similar impact to what Prop 13 originally tried to assuage -- the impact of seniors, among other things.
If an income property is subject to crazy assessments, well those taxes would just be past on to senior RENTERs, instead of owners. Mind, landlords can do that anyway, some may, some may not. But if they were subject to the assessments, I would imagine it would happen more now than it has been.
When I rented an apartment years ago, I was there 7 years, and my landlord never up'd my rent. He was just an old contractor that owned a few apartments. He built my complex basically as a way to house his workers.
Now, all that said, I can see it being "fair" if when someone switches a property from a primary residence to an income property, THAT is a "assessment event", rather than just ownership.
Inherited properties might get a grace period for a child to make it their primary residence (year or two). But, when you change it from "grandma in her bungalow", to "Bob, the budding slum lord", I don't think that would be a bad idea.
I didn't vote for Prop 19, but that doesn't mean there isn't an issue. I just didn't care for 19.
Another loophole in 13 is corporations buying other corporations, but keeping the other entity alive as a holding company for their real estate, so the property never "changes hands", and the tax rate stays. Honestly, that stinks.
I would agree with the early article, that children keeping inherited homes as income properties shouldn't necessarily benefit from the reassessment exception.
That's tricky, because we all get that benefit today. Buy a house, keep it, rent it out, buy another, you get the exemption on the first house.
Maybe there should be an exception for income properties. Mind, this has a similar impact to what Prop 13 originally tried to assuage -- the impact of seniors, among other things.
If an income property is subject to crazy assessments, well those taxes would just be past on to senior RENTERs, instead of owners. Mind, landlords can do that anyway, some may, some may not. But if they were subject to the assessments, I would imagine it would happen more now than it has been.
When I rented an apartment years ago, I was there 7 years, and my landlord never up'd my rent. He was just an old contractor that owned a few apartments. He built my complex basically as a way to house his workers.
Now, all that said, I can see it being "fair" if when someone switches a property from a primary residence to an income property, THAT is a "assessment event", rather than just ownership.
Inherited properties might get a grace period for a child to make it their primary residence (year or two). But, when you change it from "grandma in her bungalow", to "Bob, the budding slum lord", I don't think that would be a bad idea.
As you mentioned earlier, Prop 19 was funded by a special interest group. Are you referring to a money grab by that special interest group and others endorsing Prop 19?
scootergmc
old and slow
Last edited:
:thumbup :laughing
wazzuFreddo
WuTang is 4 the children
Actually it would be the State Assembly. Congress has nothing to do with state taxes.
CABilly
Splitter
Prop 19 directly fucked me in the ass. It's another assault on future generations that benefits and protects only the elderly who enjoyed the protections for the last 5 decades. Story of our lives.
m0t0_ryder
RYD!
I believe that is mentioned in the video I put up in post 13.
If you did not watch that video I encourage you to do so.
It explains Prop 13, Prop 19 and how it eliminated prop 58.
If you just want his "suggestions" on what to do by Feb 16'th jump to about 7:30.
Eldritch
is insensitive
Well, what is your situation? Are you trying to give assets to your children that will not increase in tax value?
HappyHighwayman
Warning: Do Not Engage
Luckily I have no kids to leave it to 
i_am_the_koi
Be Here Now
Being I don't own any INDUSTRIAL OR COMMERCIAL properties over 3mil...
Tax the fuck out of them.
No change to residential property taxes for my future inheritance. .
Tax the fuck out of them.
No change to residential property taxes for my future inheritance. .
kuksul08
Suh Dude
Man... realtors association lobbied 50 million dollars to make this happen. Says a lot right there what the intentions are.
On one hand - I am happy that this will incentivize people to sell multiple homes they inherited rather than renting them out at exorbitant prices, continuing the renter culture (which is a hugely negative thing for society IMO). However it has negatives in terms of keeping a home in the family. It sounds like there is an exclusion if the children/grandchildren make the home their primary residence up to $1M but still.
scootergmc
old and slow
Ah, the simple have/have not mentality.... Also, that was prop 15.
kuksul08
Suh Dude
It affects ALL property
kuksul08
Suh Dude
No, I'm the kid. My parents don't care! LOL
scootergmc
old and slow
There are thresholds, limits, etc.
Eldritch
is insensitive
Then there is nothing you can do. Plan to sell if you can't afford the new tax.
If your parents change their mind, you can look at moving the property into a trust where you will never be the true owner. If you are the sole trustee, it should not be a problem.
Killroy1999
Well-known member
I was looking at my property taxes in Santa Clara County for my townhome that I have had since 2007.
The estimated market rate for my place is $612k, but my assisted value is only $490K.
Property taxes are equivalent to $562 a month, but I my place was reassessed at market rate, then it would jump to $637 a month. It's a jump, but not too big.
If I owned the property for another 10 years, then the assessed value would only be $323K and property tax would only be ~$366 a month. That would be nice.
The estimated market rate for my place is $612k, but my assisted value is only $490K.
Property taxes are equivalent to $562 a month, but I my place was reassessed at market rate, then it would jump to $637 a month. It's a jump, but not too big.
If I owned the property for another 10 years, then the assessed value would only be $323K and property tax would only be ~$366 a month. That would be nice.