[kurthr]

I agree there is a cyclical taxation problem, especially since most of those store fronts are rented. High rents are only part of the problem with Prop13... which is that property owners don't care if their land is profitable or even occupied. In some cases that means a little mom&pop store (or a farm) stays open for a lifetime, but in many others it means that a giant mall is shuttered for decades in the middle of relatively vibrant economy in a sub-urban neighborhood. The owners see enough appreciation in value they see no reason to rent or even maintain it. Eventually homeless move in, because "housing costs are too high", and often there is fire damage. The use of prop13 by multi-generational trusts and perpetual tax avoidance by sale of company rather than transfer of title has led to significant blight in an economic boom lasting decades.

The solution to affordablity of property taxes could have been limited to humans (not trusts or corporations) with deferred taxes (lien) until probate. Instead, it will likely be with local municipalities fining ever larger amounts for unoccupied/rented properties based on market value (rather than assessed). Of course the risk that you would need to pay even 0.5%/yr to keep property would drive prices down, which would encourage people to sell or at least rent.