[quote=edna_mode]OK, I bring examples, and analysis in the form of an open letter to Warren Buffett by a Menlo Park resident who researched the effect of Prop 13 on not only resident properties, but commercial properties:
I wonder what a similar analysis for San Diego would look like. Maybe the ire of all these homeowners is misdirected at each other, and they should be looking more deeply into what the inherited mom-and-pop shops are paying for fire, sewer, water, police, courts, and an educated work force.
Deconstruct away.[/quote]
Yes, I’m aware of the problems with Prop 13 and commercial RE, and agree with the letter writter here.
Again, I strongly favor Prop 13 for **primary residences** ONLY where residential properties are concerned (and some possible exemptions for multi-family dwellings where the owner agrees to some sort of rent control — sharing the benefit of Prop 13 with the tenants instead of having taxpayers subsidizing the investors’ profits).
I’m mixed on commercial RE. I’d like to see it in effect for a single commercial property per SS number (or the SSN behind the EIN/TIN used for ownership of the building) or something, but not for multiple buildings belonging to a single family or entity.
It’s not as easy to deconstruct as one might initially think, and I staunchly support private property rights, so have a big problem anytime someone thinks a family (even heirs) should be taxed out of **their own** homes. IMHO, transferring assets within a family is a private matter, and should not trigger any kind of reassessment. That being said, if they want the benefit of their parents’ cost basis for property taxes, then they should not be able to step-up the cost basis at death/transfer for capital gains purposes. It should be one or the other. Perhaps people should have a choice when they inherit to either step up the cost basis for all purposes, or leave it at the original cost basis for all purposes.
Yes, you’re right about some of the deadbeat kids taking over mom and dad’s house after they die, then letting it fall apart. We’ve seen the same ourselves, and it’s a shame. Perhaps that could be dealt with in some other fashion (code enforcement?). IMHO, they deserve a home, too, and there is no reason for me or anyone else to feel entitled to take away their right to live in their own family’s home.
