[quote=AN][quote=CA renter]Also, please specify exactly what you’re referring to on the bolded part. Thanks![/quote]45% of Californian are renters and do not benefit from prop 13. They’re subsidizing the 55% of Californian home owners. Renters are usually a lot less well off than home owners. But they have to pay the tax differences through their income and sales tax. So yes, they are subsidizing the home owners’ prop 13.[/quote]
Yes, they are indirectly paying the property taxes for their landlords in most cases. This is exactly the group I want to help by freeing up more for-sale inventory at better prices. Most renters want to own, but are not able to because of inventory constraints due partly to Prop 13 and also the hordes of speculators who bid-up housing prices so they can have renters pay their mortgages/taxes/insurance/profits for them.
Though this isn’t related to Prop 13, I would also disallow GSE/FHA financing for investment properties and second homes, and eliminate the mortgage interest deduction for investment properties (all MID, actually).
I would also favor changing the rules regarding “stepping-up” the cost basis of housing upon the death of an owner (for the benefit of the heir/beneficiary), and exchange that for an inflation adjustment to the cost basis for all real estate sold by anyone, not just lucky heirs. This would free up a lot of RE that people are holding onto in order to avoid the tax consequences of selling before the death of the original or long-term owner.
