First, prices being where they are is at least partially a consequence of taxes staying the same which encouraged NIMBYism to build free equity instead of building.
Second, people who now have 2 million in equity with a 100k cost basis can take out financing for a portion of that to cover taxes into perpetuity and still have a huge equity appreciation.
Third, none of this precludes a slow path to getting people to paying FMV taxes by, for instance, capping tax increases at 10% per year. It'll take 20 years to catch up, but that's better than now. And it should probably accelerate if you hand the property down to the next generation.
Fourth, why does Prop 13 exist for people who rent out their homes or for commercial property? That's just a subsidy to the existing.
Second, people who now have 2 million in equity with a 100k cost basis can take out financing for a portion of that to cover taxes into perpetuity and still have a huge equity appreciation.
Third, none of this precludes a slow path to getting people to paying FMV taxes by, for instance, capping tax increases at 10% per year. It'll take 20 years to catch up, but that's better than now. And it should probably accelerate if you hand the property down to the next generation.
Fourth, why does Prop 13 exist for people who rent out their homes or for commercial property? That's just a subsidy to the existing.