
Landlords and Heirs: Why Prop 13 isn’t just unfair, it’s un-American - philsnow
https://medium.com/@michaellevinson_64108/landlords-and-heirs-why-prop-13-isnt-just-unfair-it-s-un-american-20a8597cb37b
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rrauenza
I don't completely understand his argument that raising prop tax on landlords
wouldn't increase rent prices --

> It’s important to note that the tenants aren’t seeing any of those tax
> savings. They pay $8,000/month, full market rate. Landlords charge whatever
> rent the market bears — older investors receiving large Prop 13 subsidies
> simply enjoy a higher profit margin than younger ones who do don’t.

Doesn't that still affect the market, though? Wouldn't some landlords' lower
overhead still drive the price down a little?

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TheCoelacanth
The landlords' costs shouldn't affect rent prices, except when it decreases
the supply of rental units. The property tax increase primarily affects
buildings that were constructed decades ago, has a very small effect on
buildings that were constructed recently and has absolutely no effect on newly
constructed buildings. The landlords can't go back in time and decide not to
build the building and removing the existing building from the market does not
let them escape the property taxes, so there shouldn't be any effect on
supply.

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sagarm
Repealing prop 13 might actually increase the supply of rentals, as it
incentivizes renting out currently underutilized real estate.

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Gibbon1
I looked up the house I grew up in which my dad still owns. He paid $2400 in
property tax last year. The people that bought my best friends house paid
$14,000.

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dorfsmay
Calculate property tax on revenue and you solve both problems.

