What will the repeal of Prop 13 do to the market?

[ILoveRegulation]

Flu,

Go fvck yourself.

[UCGal]

I’ve been hesitant to join in this discussion. I think some people who post here know… I’m one of those evil heirs who has my parents prop 13 rate on my home. I paid my father market value for the home (in 2003).

The tax savings are only partial. As many of you know we built a handicap accessible granny flat for my inlaws to live in. That new dwelling is taxed at the market value of the completion… well, not really since they deducted for the parts that were specifically addressing the wheelchair accessiblity – we got deductions for the bathroom and the grading/paving for the wheelchair ramps.

We pay more in property tax for the 700sf granny flat than for our home.

In our case my dad had a choice of transferring his prop 13 to his new home, or letting us have it. On the books we kept the rate with this home. Off the books we pooled the two property tax bills and split them with my dad. That was fair in our minds. Seniors who want to downsize have the option of transferring their rate to their new home as long as it is of lesser value and the new home is in a CA county that offers this. (not all do.)

Would we have bought this house without the prop 13 pass through… I’m not sure. The house is in a great neighborhood, great location… but it was expensive. To be fair to my siblings, we paid market rate. (The equity was part of their inheritance also). The lot was also attractive because it was large enough to qualify for building a companion unit… Something new construction didn’t offer. But the tax rate was the deciding factor. We’re extremely conservative, financially and are concerned about fixed costs going forward. We might have relocated back out of this expensive area if the numbers hadn’t worked out.

I live in a neighborhood, heck even my block that has several prop13 heirs. In all but one case – the parent didn’t die – the surviving parent sold the home to the child when downsizing. I’ve talked to 2 of my neighbors who indicate this was a deciding factor for buying from their parents since they already had an established prop13 rate and to start over at new market rate would have broken their budget.

Whether this is fair or not… I can see where people would find it unfair. Would I turn it down? Obviously no.

The fact is – the Prop 13, 60, and 90 all applied when I purchased. The tax rate was a significant factor in deciding to purchase. Any additions impact the tax rate at current value at time of occupancy/inspection sign off.

[UCGal]

I’ve been hesitant to join in this discussion. I think some people who post here know… I’m one of those evil heirs who has my parents prop 13 rate on my home. I paid my father market value for the home (in 2003).

The tax savings are only partial. As many of you know we built a handicap accessible granny flat for my inlaws to live in. That new dwelling is taxed at the market value of the completion… well, not really since they deducted for the parts that were specifically addressing the wheelchair accessiblity – we got deductions for the bathroom and the grading/paving for the wheelchair ramps.

We pay more in property tax for the 700sf granny flat than for our home.

In our case my dad had a choice of transferring his prop 13 to his new home, or letting us have it. On the books we kept the rate with this home. Off the books we pooled the two property tax bills and split them with my dad. That was fair in our minds. Seniors who want to downsize have the option of transferring their rate to their new home as long as it is of lesser value and the new home is in a CA county that offers this. (not all do.)

Would we have bought this house without the prop 13 pass through… I’m not sure. The house is in a great neighborhood, great location… but it was expensive. To be fair to my siblings, we paid market rate. (The equity was part of their inheritance also). The lot was also attractive because it was large enough to qualify for building a companion unit… Something new construction didn’t offer. But the tax rate was the deciding factor. We’re extremely conservative, financially and are concerned about fixed costs going forward. We might have relocated back out of this expensive area if the numbers hadn’t worked out.

I live in a neighborhood, heck even my block that has several prop13 heirs. In all but one case – the parent didn’t die – the surviving parent sold the home to the child when downsizing. I’ve talked to 2 of my neighbors who indicate this was a deciding factor for buying from their parents since they already had an established prop13 rate and to start over at new market rate would have broken their budget.

Whether this is fair or not… I can see where people would find it unfair. Would I turn it down? Obviously no.

The fact is – the Prop 13, 60, and 90 all applied when I purchased. The tax rate was a significant factor in deciding to purchase. Any additions impact the tax rate at current value at time of occupancy/inspection sign off.

[UCGal]

I’ve been hesitant to join in this discussion. I think some people who post here know… I’m one of those evil heirs who has my parents prop 13 rate on my home. I paid my father market value for the home (in 2003).

The tax savings are only partial. As many of you know we built a handicap accessible granny flat for my inlaws to live in. That new dwelling is taxed at the market value of the completion… well, not really since they deducted for the parts that were specifically addressing the wheelchair accessiblity – we got deductions for the bathroom and the grading/paving for the wheelchair ramps.

We pay more in property tax for the 700sf granny flat than for our home.

In our case my dad had a choice of transferring his prop 13 to his new home, or letting us have it. On the books we kept the rate with this home. Off the books we pooled the two property tax bills and split them with my dad. That was fair in our minds. Seniors who want to downsize have the option of transferring their rate to their new home as long as it is of lesser value and the new home is in a CA county that offers this. (not all do.)

Would we have bought this house without the prop 13 pass through… I’m not sure. The house is in a great neighborhood, great location… but it was expensive. To be fair to my siblings, we paid market rate. (The equity was part of their inheritance also). The lot was also attractive because it was large enough to qualify for building a companion unit… Something new construction didn’t offer. But the tax rate was the deciding factor. We’re extremely conservative, financially and are concerned about fixed costs going forward. We might have relocated back out of this expensive area if the numbers hadn’t worked out.

I live in a neighborhood, heck even my block that has several prop13 heirs. In all but one case – the parent didn’t die – the surviving parent sold the home to the child when downsizing. I’ve talked to 2 of my neighbors who indicate this was a deciding factor for buying from their parents since they already had an established prop13 rate and to start over at new market rate would have broken their budget.

Whether this is fair or not… I can see where people would find it unfair. Would I turn it down? Obviously no.

The fact is – the Prop 13, 60, and 90 all applied when I purchased. The tax rate was a significant factor in deciding to purchase. Any additions impact the tax rate at current value at time of occupancy/inspection sign off.

[UCGal]

I’ve been hesitant to join in this discussion. I think some people who post here know… I’m one of those evil heirs who has my parents prop 13 rate on my home. I paid my father market value for the home (in 2003).

The tax savings are only partial. As many of you know we built a handicap accessible granny flat for my inlaws to live in. That new dwelling is taxed at the market value of the completion… well, not really since they deducted for the parts that were specifically addressing the wheelchair accessiblity – we got deductions for the bathroom and the grading/paving for the wheelchair ramps.

We pay more in property tax for the 700sf granny flat than for our home.

In our case my dad had a choice of transferring his prop 13 to his new home, or letting us have it. On the books we kept the rate with this home. Off the books we pooled the two property tax bills and split them with my dad. That was fair in our minds. Seniors who want to downsize have the option of transferring their rate to their new home as long as it is of lesser value and the new home is in a CA county that offers this. (not all do.)

Would we have bought this house without the prop 13 pass through… I’m not sure. The house is in a great neighborhood, great location… but it was expensive. To be fair to my siblings, we paid market rate. (The equity was part of their inheritance also). The lot was also attractive because it was large enough to qualify for building a companion unit… Something new construction didn’t offer. But the tax rate was the deciding factor. We’re extremely conservative, financially and are concerned about fixed costs going forward. We might have relocated back out of this expensive area if the numbers hadn’t worked out.

I live in a neighborhood, heck even my block that has several prop13 heirs. In all but one case – the parent didn’t die – the surviving parent sold the home to the child when downsizing. I’ve talked to 2 of my neighbors who indicate this was a deciding factor for buying from their parents since they already had an established prop13 rate and to start over at new market rate would have broken their budget.

Whether this is fair or not… I can see where people would find it unfair. Would I turn it down? Obviously no.

The fact is – the Prop 13, 60, and 90 all applied when I purchased. The tax rate was a significant factor in deciding to purchase. Any additions impact the tax rate at current value at time of occupancy/inspection sign off.

[UCGal]

I’ve been hesitant to join in this discussion. I think some people who post here know… I’m one of those evil heirs who has my parents prop 13 rate on my home. I paid my father market value for the home (in 2003).

The tax savings are only partial. As many of you know we built a handicap accessible granny flat for my inlaws to live in. That new dwelling is taxed at the market value of the completion… well, not really since they deducted for the parts that were specifically addressing the wheelchair accessiblity – we got deductions for the bathroom and the grading/paving for the wheelchair ramps.

We pay more in property tax for the 700sf granny flat than for our home.

In our case my dad had a choice of transferring his prop 13 to his new home, or letting us have it. On the books we kept the rate with this home. Off the books we pooled the two property tax bills and split them with my dad. That was fair in our minds. Seniors who want to downsize have the option of transferring their rate to their new home as long as it is of lesser value and the new home is in a CA county that offers this. (not all do.)

Would we have bought this house without the prop 13 pass through… I’m not sure. The house is in a great neighborhood, great location… but it was expensive. To be fair to my siblings, we paid market rate. (The equity was part of their inheritance also). The lot was also attractive because it was large enough to qualify for building a companion unit… Something new construction didn’t offer. But the tax rate was the deciding factor. We’re extremely conservative, financially and are concerned about fixed costs going forward. We might have relocated back out of this expensive area if the numbers hadn’t worked out.

I live in a neighborhood, heck even my block that has several prop13 heirs. In all but one case – the parent didn’t die – the surviving parent sold the home to the child when downsizing. I’ve talked to 2 of my neighbors who indicate this was a deciding factor for buying from their parents since they already had an established prop13 rate and to start over at new market rate would have broken their budget.

Whether this is fair or not… I can see where people would find it unfair. Would I turn it down? Obviously no.

The fact is – the Prop 13, 60, and 90 all applied when I purchased. The tax rate was a significant factor in deciding to purchase. Any additions impact the tax rate at current value at time of occupancy/inspection sign off.

[bearishgurl]

[quote=UCGal]I’ve been hesitant to join in this discussion. I think some people who post here know… I’m one of those evil heirs who has my parents prop 13 rate on my home. I paid my father market value for the home (in 2003).

The tax savings are only partial. As many of you know we built a handicap accessible granny flat for my inlaws to live in. That new dwelling is taxed at the market value of the completion… well, not really since they deducted for the parts that were specifically addressing the wheelchair accessiblity – we got deductions for the bathroom and the grading/paving for the wheelchair ramps.

We pay more in property tax for the 700sf granny flat than for our home.

In our case my dad had a choice of transferring his prop 13 to his new home, or letting us have it. On the books we kept the rate with this home. Off the books we pooled the two property tax bills and split them with my dad. That was fair in our minds. Seniors who want to downsize have the option of transferring their rate to their new home as long as it is of lesser value and the new home is in a CA county that offers this. (not all do.)

Would we have bought this house without the prop 13 pass through… I’m not sure. The house is in a great neighborhood, great location… but it was expensive. To be fair to my siblings, we paid market rate. (The equity was part of their inheritance also). The lot was also attractive because it was large enough to qualify for building a companion unit… Something new construction didn’t offer. But the tax rate was the deciding factor. We’re extremely conservative, financially and are concerned about fixed costs going forward. We might have relocated back out of this expensive area if the numbers hadn’t worked out.

I live in a neighborhood, heck even my block that has several prop13 heirs. In all but one case – the parent didn’t die – the surviving parent sold the home to the child when downsizing. I’ve talked to 2 of my neighbors who indicate this was a deciding factor for buying from their parents since they already had an established prop13 rate and to start over at new market rate would have broken their budget.

Whether this is fair or not… I can see where people would find it unfair. Would I turn it down? Obviously no.

The fact is – the Prop 13, 60, and 90 all applied when I purchased. The tax rate was a significant factor in deciding to purchase. Any additions impact the tax rate at current value at time of occupancy/inspection sign off.[/quote]

Thank your for your candid post, UCGal. My “rants” were NOT about you. There are hundreds of thousands of “yous” in CA. I just literally bump into them everywhere. These people all own properties that COULD HAVE BEEN assessed at market rate on date of death/date of filing “familial transfer-deed” and taxed 2% more every year in accordance with Prop 13. You are aware that you currently have the right to leave your house to your young children someday, as do your “heir-neighbors.” If the pass-thru provision is not repealed, your child(ren) will also enjoy your below-market tax treatment. And your higher-taxed (I presume “legal”) granny flat can be rented for an income should your in-laws pass away or move out.

I never stated these “heirs” were “evil.” I stated that their families took advantage of a valuable tax loophole because they CAN! If it was available to me, I probably would have taken advantage of it. My close neighbors have lived the vast majority of their adult life with preferential property tax treatment. The many, many thousands of dollars I have spent in property tax over these “heirs” probably went into their retirement accounts. Both have added on and almost doubled the size of their dwellings. But this didn’t affect their minuscule assessment very much. Like UCGal suggested, I believe many, many of them would have to relocate to a cheaper area if their parents’ Prop 13 orig tax basis had not been available to them.

I’ve always maintained here that longtime homeowners in CA’s finest neighborhoods aren’t necessarily “wealthy” or particularly “educated.” Many have little assets except for their house, which they will no doubt attempt to pass down, if they have children (to keep its orig Prop 13 assessment), either before or after death.

[bearishgurl]

[quote=UCGal]I’ve been hesitant to join in this discussion. I think some people who post here know… I’m one of those evil heirs who has my parents prop 13 rate on my home. I paid my father market value for the home (in 2003).

The tax savings are only partial. As many of you know we built a handicap accessible granny flat for my inlaws to live in. That new dwelling is taxed at the market value of the completion… well, not really since they deducted for the parts that were specifically addressing the wheelchair accessiblity – we got deductions for the bathroom and the grading/paving for the wheelchair ramps.

We pay more in property tax for the 700sf granny flat than for our home.

In our case my dad had a choice of transferring his prop 13 to his new home, or letting us have it. On the books we kept the rate with this home. Off the books we pooled the two property tax bills and split them with my dad. That was fair in our minds. Seniors who want to downsize have the option of transferring their rate to their new home as long as it is of lesser value and the new home is in a CA county that offers this. (not all do.)

Would we have bought this house without the prop 13 pass through… I’m not sure. The house is in a great neighborhood, great location… but it was expensive. To be fair to my siblings, we paid market rate. (The equity was part of their inheritance also). The lot was also attractive because it was large enough to qualify for building a companion unit… Something new construction didn’t offer. But the tax rate was the deciding factor. We’re extremely conservative, financially and are concerned about fixed costs going forward. We might have relocated back out of this expensive area if the numbers hadn’t worked out.

I live in a neighborhood, heck even my block that has several prop13 heirs. In all but one case – the parent didn’t die – the surviving parent sold the home to the child when downsizing. I’ve talked to 2 of my neighbors who indicate this was a deciding factor for buying from their parents since they already had an established prop13 rate and to start over at new market rate would have broken their budget.

Whether this is fair or not… I can see where people would find it unfair. Would I turn it down? Obviously no.

The fact is – the Prop 13, 60, and 90 all applied when I purchased. The tax rate was a significant factor in deciding to purchase. Any additions impact the tax rate at current value at time of occupancy/inspection sign off.[/quote]

Thank your for your candid post, UCGal. My “rants” were NOT about you. There are hundreds of thousands of “yous” in CA. I just literally bump into them everywhere. These people all own properties that COULD HAVE BEEN assessed at market rate on date of death/date of filing “familial transfer-deed” and taxed 2% more every year in accordance with Prop 13. You are aware that you currently have the right to leave your house to your young children someday, as do your “heir-neighbors.” If the pass-thru provision is not repealed, your child(ren) will also enjoy your below-market tax treatment. And your higher-taxed (I presume “legal”) granny flat can be rented for an income should your in-laws pass away or move out.

I never stated these “heirs” were “evil.” I stated that their families took advantage of a valuable tax loophole because they CAN! If it was available to me, I probably would have taken advantage of it. My close neighbors have lived the vast majority of their adult life with preferential property tax treatment. The many, many thousands of dollars I have spent in property tax over these “heirs” probably went into their retirement accounts. Both have added on and almost doubled the size of their dwellings. But this didn’t affect their minuscule assessment very much. Like UCGal suggested, I believe many, many of them would have to relocate to a cheaper area if their parents’ Prop 13 orig tax basis had not been available to them.

I’ve always maintained here that longtime homeowners in CA’s finest neighborhoods aren’t necessarily “wealthy” or particularly “educated.” Many have little assets except for their house, which they will no doubt attempt to pass down, if they have children (to keep its orig Prop 13 assessment), either before or after death.

[bearishgurl]

[quote=UCGal]I’ve been hesitant to join in this discussion. I think some people who post here know… I’m one of those evil heirs who has my parents prop 13 rate on my home. I paid my father market value for the home (in 2003).

The tax savings are only partial. As many of you know we built a handicap accessible granny flat for my inlaws to live in. That new dwelling is taxed at the market value of the completion… well, not really since they deducted for the parts that were specifically addressing the wheelchair accessiblity – we got deductions for the bathroom and the grading/paving for the wheelchair ramps.

We pay more in property tax for the 700sf granny flat than for our home.

In our case my dad had a choice of transferring his prop 13 to his new home, or letting us have it. On the books we kept the rate with this home. Off the books we pooled the two property tax bills and split them with my dad. That was fair in our minds. Seniors who want to downsize have the option of transferring their rate to their new home as long as it is of lesser value and the new home is in a CA county that offers this. (not all do.)

Would we have bought this house without the prop 13 pass through… I’m not sure. The house is in a great neighborhood, great location… but it was expensive. To be fair to my siblings, we paid market rate. (The equity was part of their inheritance also). The lot was also attractive because it was large enough to qualify for building a companion unit… Something new construction didn’t offer. But the tax rate was the deciding factor. We’re extremely conservative, financially and are concerned about fixed costs going forward. We might have relocated back out of this expensive area if the numbers hadn’t worked out.

I live in a neighborhood, heck even my block that has several prop13 heirs. In all but one case – the parent didn’t die – the surviving parent sold the home to the child when downsizing. I’ve talked to 2 of my neighbors who indicate this was a deciding factor for buying from their parents since they already had an established prop13 rate and to start over at new market rate would have broken their budget.

Whether this is fair or not… I can see where people would find it unfair. Would I turn it down? Obviously no.

The fact is – the Prop 13, 60, and 90 all applied when I purchased. The tax rate was a significant factor in deciding to purchase. Any additions impact the tax rate at current value at time of occupancy/inspection sign off.[/quote]

Thank your for your candid post, UCGal. My “rants” were NOT about you. There are hundreds of thousands of “yous” in CA. I just literally bump into them everywhere. These people all own properties that COULD HAVE BEEN assessed at market rate on date of death/date of filing “familial transfer-deed” and taxed 2% more every year in accordance with Prop 13. You are aware that you currently have the right to leave your house to your young children someday, as do your “heir-neighbors.” If the pass-thru provision is not repealed, your child(ren) will also enjoy your below-market tax treatment. And your higher-taxed (I presume “legal”) granny flat can be rented for an income should your in-laws pass away or move out.

I never stated these “heirs” were “evil.” I stated that their families took advantage of a valuable tax loophole because they CAN! If it was available to me, I probably would have taken advantage of it. My close neighbors have lived the vast majority of their adult life with preferential property tax treatment. The many, many thousands of dollars I have spent in property tax over these “heirs” probably went into their retirement accounts. Both have added on and almost doubled the size of their dwellings. But this didn’t affect their minuscule assessment very much. Like UCGal suggested, I believe many, many of them would have to relocate to a cheaper area if their parents’ Prop 13 orig tax basis had not been available to them.

I’ve always maintained here that longtime homeowners in CA’s finest neighborhoods aren’t necessarily “wealthy” or particularly “educated.” Many have little assets except for their house, which they will no doubt attempt to pass down, if they have children (to keep its orig Prop 13 assessment), either before or after death.

[bearishgurl]

[quote=UCGal]I’ve been hesitant to join in this discussion. I think some people who post here know… I’m one of those evil heirs who has my parents prop 13 rate on my home. I paid my father market value for the home (in 2003).

The tax savings are only partial. As many of you know we built a handicap accessible granny flat for my inlaws to live in. That new dwelling is taxed at the market value of the completion… well, not really since they deducted for the parts that were specifically addressing the wheelchair accessiblity – we got deductions for the bathroom and the grading/paving for the wheelchair ramps.

We pay more in property tax for the 700sf granny flat than for our home.

In our case my dad had a choice of transferring his prop 13 to his new home, or letting us have it. On the books we kept the rate with this home. Off the books we pooled the two property tax bills and split them with my dad. That was fair in our minds. Seniors who want to downsize have the option of transferring their rate to their new home as long as it is of lesser value and the new home is in a CA county that offers this. (not all do.)

Would we have bought this house without the prop 13 pass through… I’m not sure. The house is in a great neighborhood, great location… but it was expensive. To be fair to my siblings, we paid market rate. (The equity was part of their inheritance also). The lot was also attractive because it was large enough to qualify for building a companion unit… Something new construction didn’t offer. But the tax rate was the deciding factor. We’re extremely conservative, financially and are concerned about fixed costs going forward. We might have relocated back out of this expensive area if the numbers hadn’t worked out.

I live in a neighborhood, heck even my block that has several prop13 heirs. In all but one case – the parent didn’t die – the surviving parent sold the home to the child when downsizing. I’ve talked to 2 of my neighbors who indicate this was a deciding factor for buying from their parents since they already had an established prop13 rate and to start over at new market rate would have broken their budget.

Whether this is fair or not… I can see where people would find it unfair. Would I turn it down? Obviously no.

The fact is – the Prop 13, 60, and 90 all applied when I purchased. The tax rate was a significant factor in deciding to purchase. Any additions impact the tax rate at current value at time of occupancy/inspection sign off.[/quote]

Thank your for your candid post, UCGal. My “rants” were NOT about you. There are hundreds of thousands of “yous” in CA. I just literally bump into them everywhere. These people all own properties that COULD HAVE BEEN assessed at market rate on date of death/date of filing “familial transfer-deed” and taxed 2% more every year in accordance with Prop 13. You are aware that you currently have the right to leave your house to your young children someday, as do your “heir-neighbors.” If the pass-thru provision is not repealed, your child(ren) will also enjoy your below-market tax treatment. And your higher-taxed (I presume “legal”) granny flat can be rented for an income should your in-laws pass away or move out.

I never stated these “heirs” were “evil.” I stated that their families took advantage of a valuable tax loophole because they CAN! If it was available to me, I probably would have taken advantage of it. My close neighbors have lived the vast majority of their adult life with preferential property tax treatment. The many, many thousands of dollars I have spent in property tax over these “heirs” probably went into their retirement accounts. Both have added on and almost doubled the size of their dwellings. But this didn’t affect their minuscule assessment very much. Like UCGal suggested, I believe many, many of them would have to relocate to a cheaper area if their parents’ Prop 13 orig tax basis had not been available to them.

I’ve always maintained here that longtime homeowners in CA’s finest neighborhoods aren’t necessarily “wealthy” or particularly “educated.” Many have little assets except for their house, which they will no doubt attempt to pass down, if they have children (to keep its orig Prop 13 assessment), either before or after death.

[bearishgurl]

[quote=UCGal]I’ve been hesitant to join in this discussion. I think some people who post here know… I’m one of those evil heirs who has my parents prop 13 rate on my home. I paid my father market value for the home (in 2003).

The tax savings are only partial. As many of you know we built a handicap accessible granny flat for my inlaws to live in. That new dwelling is taxed at the market value of the completion… well, not really since they deducted for the parts that were specifically addressing the wheelchair accessiblity – we got deductions for the bathroom and the grading/paving for the wheelchair ramps.

We pay more in property tax for the 700sf granny flat than for our home.

In our case my dad had a choice of transferring his prop 13 to his new home, or letting us have it. On the books we kept the rate with this home. Off the books we pooled the two property tax bills and split them with my dad. That was fair in our minds. Seniors who want to downsize have the option of transferring their rate to their new home as long as it is of lesser value and the new home is in a CA county that offers this. (not all do.)

Would we have bought this house without the prop 13 pass through… I’m not sure. The house is in a great neighborhood, great location… but it was expensive. To be fair to my siblings, we paid market rate. (The equity was part of their inheritance also). The lot was also attractive because it was large enough to qualify for building a companion unit… Something new construction didn’t offer. But the tax rate was the deciding factor. We’re extremely conservative, financially and are concerned about fixed costs going forward. We might have relocated back out of this expensive area if the numbers hadn’t worked out.

I live in a neighborhood, heck even my block that has several prop13 heirs. In all but one case – the parent didn’t die – the surviving parent sold the home to the child when downsizing. I’ve talked to 2 of my neighbors who indicate this was a deciding factor for buying from their parents since they already had an established prop13 rate and to start over at new market rate would have broken their budget.

Whether this is fair or not… I can see where people would find it unfair. Would I turn it down? Obviously no.

The fact is – the Prop 13, 60, and 90 all applied when I purchased. The tax rate was a significant factor in deciding to purchase. Any additions impact the tax rate at current value at time of occupancy/inspection sign off.[/quote]

Thank your for your candid post, UCGal. My “rants” were NOT about you. There are hundreds of thousands of “yous” in CA. I just literally bump into them everywhere. These people all own properties that COULD HAVE BEEN assessed at market rate on date of death/date of filing “familial transfer-deed” and taxed 2% more every year in accordance with Prop 13. You are aware that you currently have the right to leave your house to your young children someday, as do your “heir-neighbors.” If the pass-thru provision is not repealed, your child(ren) will also enjoy your below-market tax treatment. And your higher-taxed (I presume “legal”) granny flat can be rented for an income should your in-laws pass away or move out.

I never stated these “heirs” were “evil.” I stated that their families took advantage of a valuable tax loophole because they CAN! If it was available to me, I probably would have taken advantage of it. My close neighbors have lived the vast majority of their adult life with preferential property tax treatment. The many, many thousands of dollars I have spent in property tax over these “heirs” probably went into their retirement accounts. Both have added on and almost doubled the size of their dwellings. But this didn’t affect their minuscule assessment very much. Like UCGal suggested, I believe many, many of them would have to relocate to a cheaper area if their parents’ Prop 13 orig tax basis had not been available to them.

I’ve always maintained here that longtime homeowners in CA’s finest neighborhoods aren’t necessarily “wealthy” or particularly “educated.” Many have little assets except for their house, which they will no doubt attempt to pass down, if they have children (to keep its orig Prop 13 assessment), either before or after death.

[sdrealtor]

Stupid Prop 13 question as I dont completely understand the details. Does the ability to pass a tax basis to heirs only exist for pre-1978 purchases or does it apply to all homes?

[sdrealtor]

Stupid Prop 13 question as I dont completely understand the details. Does the ability to pass a tax basis to heirs only exist for pre-1978 purchases or does it apply to all homes?

[sdrealtor]

Stupid Prop 13 question as I dont completely understand the details. Does the ability to pass a tax basis to heirs only exist for pre-1978 purchases or does it apply to all homes?

[sdrealtor]

Stupid Prop 13 question as I dont completely understand the details. Does the ability to pass a tax basis to heirs only exist for pre-1978 purchases or does it apply to all homes?

[Author]

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