Not quite. A working family living in a city for generations shouldn’t be displaced by taxes on unrealized gains. If the city wants to tax at current prices, they should guarantee that price for 5 years.
Those homeowners seem to have a majority in the area. Seems moronic to run a trillion dollar company at odds with the local government.
NYC has an income tax. I bet SF will have one within 5 years.
For inheritances, you re-assess and consider it a sale. If the price went up lots, the kids can pay the tax and keep it, or they can sell the property and pay off the taxes.
But governments that try to get between families will end up on the loosing end. What inevitably happens is that the rich get loopholes and the middle class pays. At least in California everyone gets the same deal.
If you can get all the Google engineers to go on strike unless Mountain View agrees to build 50,000 homes, it will be done over night.
I'm not trying to explain housing prices here. I'm talking about the innate behaviour of Prop 13.
Why? What entitles someone to being in a certain location?
Also you get paid an enormous amount of money to move when the property value gets so high that you can't pay the percentage in taxes.
Go buy three houses somewhere else and don't pretend you're oppressed.
If we were regularly pushing people out with huge paydays, and then putting in denser housing, they'd be able to afford to move right back in with the only downside being a smaller yard to offset their pile of cash. And people that didn't win the housing lottery would be able to move in too.