Painted Ladies and Prop 13
The Painted Ladies, iconic Victorian homes in San Francisco, highlight the significant disparities in property taxes caused by California's Proposition 13. This law, enacted in 1978, caps property tax increases at 2% annually, keeping taxes low for long-term homeowners while newer buyers pay much higher rates. For instance, one Painted Lady owner pays $1,100 in taxes due to a 50-year ownership, while a neighboring house bought in 2020 incurs a $44,000 tax bill. This discrepancy is due to Prop. 13’s provision that taxes homes based on their purchase price, not current market value. This results in long-term homeowners benefiting from substantial tax breaks, while new buyers and those undertaking major renovations face significantly higher taxes.
SF’s iconic Painted Ladies are a prime example of Prop. 13’s unjust legacy. If an individual is getting a $43K tax break, can you just imagine how much big corporations are getting? This situation underscores the need for reform in California's property tax system. Prop. 13’s protections for long-term homeowners exacerbate inequality and reduce public funding, particularly affecting education. It's crucial to address these inequities and close corporate loopholes to ensure a fairer tax system for all Californians.
S.F.’s Painted Ladies: Why does one pay $1,000 in property tax and another $44,000?
By Nami Sumida| SF Chroncicle| May 24th, 2024