> What is most unfair about prop 13 is that the lower tax rate can be transferred to your descendants
That’s mostly gone now with Prop 19. It used to be that children could inherit apartment buildings, multiple houses, commercial buildings, with no new tax assessment. Now, children can only inherit a parent’s primary residence without a new tax assessment. Even then, they can only avoid a tax increase up to the first $1m in value and only if the children live in the property. If they keep it as a rental, they lose the benefit.
The change should result in more properties being sold after inheritance, which will increase market supply and lower prices.
That’s mostly gone now with Prop 19. It used to be that children could inherit apartment buildings, multiple houses, commercial buildings, with no new tax assessment. Now, children can only inherit a parent’s primary residence without a new tax assessment. Even then, they can only avoid a tax increase up to the first $1m in value and only if the children live in the property. If they keep it as a rental, they lose the benefit.
The change should result in more properties being sold after inheritance, which will increase market supply and lower prices.