Originally posted in the San Jose Mercury News letters section:
Reason no one moves: awful property taxes
Taxes are the main reasons Californians are staying where they are. Proposition 13 has caused a steady shift of the property tax burden from commercial and industrial to residential property. This locks in outdated assessments, thus denying the community the additional tax revenues that would be paid by new homeowners.
Seniors over 62 should be allowed to move anywhere in California without paying increased property taxes, as long as they are moving to a less expensive residence.
State and federal capital gains taxes should be eliminated for sale of a home by seniors over 62. There are millions of California homes that have appreciated more than the outdated $250,000 per person capital gain exemption that won’t sell because of the state and federal (24.3 percent) tax rate.