I can see different sides of it. I own properties that I will pass on to my kids and see how this could impact them. But I think this guy’s position is really only justified if he’s passing most of his tax break on to his lower income tenant.
Tax revenue has to come from someone, and I don’t think it would not be fair if these extremely low rates could be passed down for generations.
This is all about greed and entitlement. This guy inherited a boatload of real estate. If he’s not happy with the taxes he can sell with a stepped up basis and reinvest somewhere else with better cap rates. Prop 13 was a great thing and I support most of it. With our prices going crazy I like the idea that long time owners should not get priced out. But commercial property owners and investment properties for heirs? Not so much with this high class problem. My kids are gonna inherit millions in real estate. If they elect to live in it and Prop 19 increases their taxes, they will be in paid off homes with monthly taxes that are still less than the cost of a 1BR rental in the area. If they cant afford that between what they make and what I leave behind they should go. If they rent the properties out, let them pay market rate taxes. They will still be massively cash flow positive as they will be paid off. Im not gonna cry for my kids making less massive profits and Im not gonna cry for someone else’s kids either. Or they can sell em but either way it will be a massive generational wealth windfall. Im good and they will be also
I believe this passing on of low taxes endlessly was a major cause of the lack of affordability here and it needs to improve. If this guy wants to help his struggling rentals Im sure he’d be just fine with one less 5* vacation
Thought Prop 19 didn’t change property tax for children/grandchildren that use the property as the primary residence.
I do support different options to raise the property tax over time. Such as a 5% or 10% adjustment until the the tax reaches the 1% as defined by Prop 13. Then you don’t get this immediate tax shock to individual properties – this is especially true for commercial prop if Prop 13 is ever remove on those property types.
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