[quote=bewildering]Dumb question. Does prop 13 protect tax rates even if you move out and turn the house into a rental? I assumed you had to be an owner occupier to benefit. I thought prop 13 was meant to protect old people from having their fixed costs change.[/quote]
Actually, it gets better than that. Your kids get to keep the tax basis too if they inherit your property. And I believe there are rules if you want your grandkids to inherit it too.
One of my relative’s neighbor pay $1500/year in property taxes in LA for a home that they bought back in 1979.. That home is probably worth about $1.4m.
I think the rule would also apply to a home that is owned by a corporation… Don’t know, haven’t looked into it. I guess in that case, the property tax would be pegged indefinitely, so long as the corp lives on 🙂
