As usual when discussing taxes, lots of strong opinions pop up. A few observations:
1. Renters DO pay property taxes, they just pay indirectly through their rent. Landlords’ costs include them and, over time, increases or decreases in property taxes will be reflected in rent levels.
2. A fair criticism of Prop 13 is how it limited increases to 2% per year for people who did not sell. This was more relevant during periods of rapid house price gains; less of a factor now. Besides, how common is that rare bird who has not moved since 1978?
3. The property tax is the closest we have to a wealth tax, although the correlation is pretty weak. The other two major categories tax consumption and income. I’d argue we need all three to some degree. A tax that depends on the value of one’s property is somewhat justified by the fact that that owner benefits from the local police, fire, streets, etc. and that benefit is greater the more valuable the property.
