Right now, Prop 13 beneficees have an assessed value of, say $300,000, on a $1,000,000 house. They can sell the house for $1,000,000.
If Prop 13 were actually about keeping people in their homes, then after taking advantage of below-market taxes for so long, they wouldn't be allowed to sell for more than a small percentage more than the tax assessed value.
But Prop 13 is not about keeping people in their homes, it's a selfish grab to not pay taxes, drive up home values, and profit on both ends.
> they wouldn't be allowed to sell for more than a small percentage more than the tax assessed value
This just has a bad smell to it - not only you're inviting corruption and avoidance into the deal (the buyer is asked to bring the check for the assessed value and a suitcase of cash to the deal), the actual revenue collected by the state would fall, and the federal government is likely to contest this setup as it stands to lose out on capital gains.
> Right now, Prop 13 beneficees have an assessed value of, say $300,000, on a $1,000,000 house.
Assuming a very healthy and robust real estate market that grows gangbusters 15% every single year and never falls, it would take 9 years for a $300,000 property to grow into $917,706. It would go over the $1,000,000 sticker during year 10.
Of course, this is assuming ever-lasting 15% valuation increase and no price correction whatsoever, but even in this ideal market the owner has lived there for 9+ years and does not fall qualify for your definition of "keeping people in their home"?
Even when he sells, the cash he has on hand is enough to (surprise!) buy a comparable house, so this crazy speculation scheme is only doable once in life.
This wouldn't solve the problem of state revenue. Of course, it would solve YOUR problem of being able to afford a house because house prices would be fixed, right? Except that there would be way too much competition because now everyone could afford house prices that were fixed to 1960s levels, and you probably still wouldn't be able to get your house.
Right now, Prop 13 beneficees have an assessed value of, say $300,000, on a $1,000,000 house. They can sell the house for $1,000,000.
If Prop 13 were actually about keeping people in their homes, then after taking advantage of below-market taxes for so long, they wouldn't be allowed to sell for more than a small percentage more than the tax assessed value.
But Prop 13 is not about keeping people in their homes, it's a selfish grab to not pay taxes, drive up home values, and profit on both ends.