Earlier quoted context omitted.
California has structural obstacles that don’t fit into partisan politics. Proposition 13 limits property tax collection, which warps housing development and many other factors. Also, California has high incomes, which means Californians pay more federal income tax, and the state receives less back in federal benefits, to the tune of almost $100 billion a year. Those are significant headwinds that the state would sti…
You really think california localities have a revenue problem? Prop 13 dos not limit property tax collection: it changes the distribution of it. It means I pay 40x more than my neighbor and that is very dumb, but whenver the city needs more revenue they just raise the rates.
1. People are disincentivized to move - the longer you've lived in a home, the larger the effective subsidy (vs average property tax payer) becomes.
2. New homes are on the other end of that - you pay much more in taxes than the average. So the cost of new homes is higher.
3. The average home pays less than it costs the local government. This is largely true everywhere because of the cost of public schools, but Prop 13 makes it more pronounced in CA. So local governments have a huge disincentive to approve any housing, especially larger apartments or condos where school aged children could live.
4. Govs make up for the lower tax per home by charging very high development fees for new construction, which raises prices and lowers rates.