Property taxes are paid on the sale price. It is not a punitive tax to fund new entrants.
An example:
Consider a 75 year old senior couple on fixed retirement income living in their fully paid 40 year old home. They paid the 300k mortgage and the house is worth 1 million.They raised their kids who attended public schools for 12 years each.
Property taxes are used for public school education. 45% of California budget is for schools. Property taxes go into a common pot and distributed to different school districts. It averages between 10-15k per student.
Schools have taken over nannying and provide more than basic education. They take on services that are generally the area of social services and social workers.
For example, if there are more non native English speaking families with children in school, the district gets extra funding. But more often than not, the children who know English as second language don’t come from high income areas..that is..their homes don’t contribute a lot of property taxes to the pot. Renters get the best deal because they don’t have to pay property taxes in the best school districts and often these are older properties that enjoy low taxes.
The problem here is that homes are roofs over our heads. It’s not speculative investments. They are not funding sources for the waves of new migrants and their children.
To ask 75 year old retirees to pay more taxes on property they haven’t profited from is heartless. That you need senior citizens to educate this working generation’s children’s education is shameful. It just means that the current generation doesn’t know how to manage their finances. It’s like someone living off their ageing parents pensions even when they are earning fat pay checks because they think their parents don’t need the money.
In my observation..those who ask for prop 13 to be repealed are usually : 1. First time house owners or renters 2. Transplants to California from other states that are usually economically depressed..almost always suffering from CA sticker shock 3. In their first high paying jobs 4. Don’t have parents living in California 5. Don’t have parents who were home owners in California 6. Really bad at financial management.
It boggles my mind when I see 25-30 year old Silicon Valley tech workers crying for prop 13 repeal and want you make seniors on fixed pensions homeless. They are people who are looking into other people’s homes and coveting what they think they are entitled to...
Most of the property taxes are going to fund public schools. If you want affordable housing, turn your ire towards parents who have kids and are not willing to pay for their own kids education...Instead of demanding from seniors who have paid their dues and have built the public schools and roads and infrastructure of California with their taxes when most of us weren’t even born.
I am deeply ashamed to be part of Silicon Valley that is disrespectful to the senior citizenry. On one hand, they want homeless people from all the states and undocumented immigrants to get free services and be taken care of..just when you think that such charity is laudable...on the other hand they are demanding to repeal prop 13 which will create more homeless seniors and retirees will end up without a nest egg for their safety net making them more vulnerable and even dependent on the state for services. How is this in any way logical or rational..even setting aside the fact that it’s definitely not ethical or moral.