CA lets your kids inherit the tax treatment and allows corporations the same benefit. Once you do those things, it’s off in a whole other realm than normal homestead exemptions.
The rapid run-up of home values in the US has led other states to follow, but they generally have higher caps on increases and limit the treatment to your primary residence.
Both should probably be pegged to the inflation rate nationally each year, which would probably bring them up a few ticks, but otherwise seems reasonable to me. For owner occupied of course, -not- landlords.
> Both should probably be pegged to the inflation rate
Yes I agree...but not the CPI, it should be tied specifically to housing prices. You could even have the state hire appraises to figure out the value of each specific property and peg the rate of increase to that for each property owner.
I know this comment is tongue in cheek, but I still disagree. When you purchase a house, you look at principal, taxes, PMI, and insurance before making a decision. If you're responsible, I guess.
If your little city blows up, and your property value in the market is now 3x what it was, why should you be punished and even forced out if you can't afford the new taxes? New buyers do the same math, and decide they can afford it.. Yes they're paying more, but voluntarily on a likely overpriced asset.
I'm not saying the original owners should just pay less and that's fair, screw the new buyers. I just think the increase should be capped realistically.
The fair way to handle this would be to reduce the tax rate across the board in response to housing inflation. Somehow. Governments around the world are more than happy to see housing prices rise, as are existing property owners, so I am not exactly holding my breath for this to happen.
