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0 pointscameldrv5y ago0 comments

The solution is to let people run a tab with the government. Make the minimum payment the Prop 13 rate, but if there's a change in ownership, you have to pay back the difference plus a fair rate of interest.

This ensures that no one has to move because their home appreciated, but it also ensures that no one gets to pay taxes like their home never appreciated, but then pocket appreciation at sale time.

0 comments

danhak5y ago

This seems like it might introduce a different perverse incentive for people to remain in their homes indefinitely even if they’d prefer to downsize / move. Might further exacerbate supply / demand issues.

cheriot5y ago

That's the status quo. People avoid moving because buying a house worth the same amount means paying far higher taxes.

At least with paying taxes on a sale then everyone is paying their fair share. It also reduces the incentive to vote in favor of a housing shortage.

deepakhj5y ago

You can allow people to carry it with them if they purchase another home. They should not be able to pass it to their children. It should also only apply to a primary residence. No investment properties or 2nd homes+.

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