I’m not really twisting anything. What you said is that if prop 13 is repealed, rents will go up, because an increase in taxes will be passed on to tenants. There is a presumption in that claim that rents are determined based on a landlords expenses. Hence, the only reasonable conclusion would be that a landlord who bought many years ago, and has lower taxes, would charge lower rents than a landlord who just recently purchased and has higher taxes. If your claim was based on some other conclusion on the effects of a repeal of prop 13, please explain.[/quote]
Nailed it, again.
Landlords do not pass the tax subsidy to the renters in most cases (some exceptions with long-time tenants in SFHs with low tax rates where the LL tends to leave rents alone, instead of raising them every year).
It’s like corporations saying they will pass extra costs on to the customers. Hogwash. The market will pay only what it’s willing to pay. Margins can grow and they can shrink. That’s life in a “free market.”
