There's been gunshots here twice this week so far, and it's only Tuesday.

In a Nutshell you have state revenues based on mid 1970s valuations, but all your state expenses are based in 2010 and go up each year because of inflation. Your property tax system created a bubble. If I am correct, I believe the valuation of real estate in CA dates all the way back to 1975. (I am not going to look it up but that is close) For several years you had a huge boom as people built a lot of new homes due to the housing shortage caused by your property taxation system. But as you get further and further away from 1975 with more and more people paying less than market value in property taxes and with less new construction to offset this the more your budget shortfall is going to grow. If the state could pay people the same salaries, the same construction costs for new buildings, and anything else they buy at 1975 rates they would be fine, but they can?t. Further compounding that situation is the state now has to try to make up for the shortfall by charging excessive fees and or other taxes further decreasing you tax base as you drive new residents and business away.

Gotcha, makes sense.

But I think what makes California unique compared to other states is our 20 fold property appreciation value's compared to other states. Following what everyone is saying would mean that in the San Francisco Bay area where the average home price is $500K+, i would see non stop major property tax increases for life.

I just don't think it's right that elderly people get forced out of there paid off home cause of property tax. This should be the time of their life to relax and not stress. Declining health is enough to worry about. Now they would need to worry about loosing there home with each passing years property appreciation.

There has to be a better solution.

Actually, I and others have been saying that for a while, and not just about California, but the entire United States is going to do it. Further, because they can't afford to let rich people flee, they will enact capital controls to try to prevent assets from being taken out of state or out of the country. This has already begun. It's going to get worse. Finally, the rich will resort to selling their assets and trying to move out of the country -- like I did, since I saw this shit coming years ago.

No one should have an absolute,unlimited right of land ownership. Not the native americans or european immigrants or anyone else.

The earth belongs to everyone. Eliminate the income and sales tax and replace it with land and water taxes. Income taxes and sales taxes lead to government spying on its citizens. Income and sales can be hidden or not reported while land is seemingly impossible to hide from tax collectors.

People who own more land or water or natural resouces, should pay more to the government and military for the defense of their land,water and the right to exclude all others from staying on their land.

Higher land taxes (and reducing other taxes) will encourgage landowners to share (sell) their land to non-land owners. Land,water, and natural resources are not created by man's labor. They simply exist and are claimed. Just because you came first (or killed the previous owner) is a poor excuse to own some land for eternity.

I would like to see an ebay style auction system where anyone can bid on any land plot in the country (and world). The person who agrees to pay the most taxes on the land wins the land for 1-5 years or so, until the next auction. If no one bids on a parcel of land, then no taxes are paid and the previous owner retains the title.

Yes, but all other taxes are ridiculously high.

California has plenty of money coming in via taxes. The problem is that the government is spending too much money.

That's my take on this whole thing and why I'm not thrilled to hear everyone answer is even higher taxes on my property to the point where I'm guaranteed NOT to own a home when I'm old.

No it?s a simple math problem each year they get less and less revenue from property taxes. To try and cover this decline they raise taxes and fees on everything else. Fix the property tax system and the taxes and fees in other areas can be lowered.

They have cut their funding to state prisons so much that the Federal Court system sized control of them as they didn?t meet minimal constitutional standards. So unless they want to set all of their prisoners free, close all their universities, close all their parks, fire all of their teachers, firemen and policemen they are at the end of their rope on cutting spending.

Your not special. No Guarantees in life. Not even right now with this administration in office. What about people right now who have lost there jobs and can't get a job and lost there homes. Im not talking about people who went and bought homes the could not afford but small dinky town homes for 80k. Its just getting worse.

Gotcha. So then do you think we should eliminate social security? After all nothing is guaranteed in life and when you get old you're not allowed to be secure & happy, you need to downgrade and be practical.

Explain to me how Social Security and property taxes are even remotely similar? People pay into Social Security their whole life, they are owed that. Property taxes are an expense that people have to pay in order to maintain their home. Are you suggesting that a 70-year-old with 15 years left on their mortgage should not have to pay that either?

Property Taxes are the Government's way of reminding you... they own everything. You are still just a renter.

If the only income you have to rely upon is SS...you have already downgraded.

How else are they supposed to maintain roads, highways, and every other public thing you interact with, though? Taxes are a neccesary evil. The more city workers/beaurocrats make, the higher taxes will be. the more the concrete company charges, the higher the taxes will be. The more the worker at the concrete factory makes, the higher taxes will be.

If a place wants to be expensive to live in, expect to get raped by taxes :( You aren't just paying for the nice smooth road in front of your house, you're paying the wages of 50 people down the line that were somehow involved with that road :\

Oh I know, I don't disagree. :)

Good point that people pay into social security and are entitled to it back. My reply was more or less about "there's no guarantees in life".

I still think people are failing to realize how quickly and high our appreciate is in Cali. And i'm not talking just small areas. The Bay Area is huge. Everything here doubles in price every 10 years. Even with the current downturn I know full well it'll pick up again.

No one is going to convince me that it's perfectly reasonable to raise property taxes yearly to keep up with home values to the point that no one older & retired can ever afford any longer.

Exactly...many of the people in California...seem oblivious to the plight of the State...since next years deficit may go to 37 billion.

My Mom lives on Social Security and has a modest savings account/mutual funds.

If tomorrow her property taxes jumped to match the homes worth she would be forced to sell. I'm sure a lot of her friends are in the same boat.

you're not the only one.

http://mises.org/daily/4511

What taxes do you want raised then...as it is taxes that are required to pay for the services that the State provides. Or what services do you want terminated if you prefer to go that route.

How about we spend the existing taxes correctly?

Agreed.

I don't see why they can't just raise the property taxes but exempt all of those who are over 65 and/or collecting SS from the increase.

LOL. They did. Those are all gone. What now?

Btw, what IS the average % nation wide for property tax?

Step 3. Spend more.

<1>
Not just your government btw. That goes for all goverments worldwide these days it seems.
We are cows. To be milked. If there is no milk >> slaughterhouse. And then milk the offspring too untill milkless & <goto 1>

The existing taxes have been spent...and leaves a current deficit of 19 billion dollars and a predicted deficit next year of 37 billion dollars...so I repeat what taxes do you want raised or what services do you want terminated. Those are the only two choices that exist.

To be honest, I will never see any social security. The day social security was passed and presented to us as Americans, the massive deficit started. The days of receiving social security is over. Its bankrupt.

Unfortunately, I agree that by the time us younger fellas are at the retirement age we will need to depend on our own retirement plans and savings.

150 system failures :)