[triceratops]

The problem with Prop 13 is not about its effect on tax revenue.

Prop 13 is no different from rent control. It distorts the market and limits supply.

If a property owner can't afford the tax on their land, it means the land is under-utilized. SFHs should be replaced by townhomes which should be replaced by multi-family buildings and so on. That doesn't happen because people who bought a house 50 years ago for a few beads and pieces of gum don't have this market signal in the form of a higher property tax bill.

[encoderer]

Yeah it distorts the property market. It doesn’t create a budget crisis as suggested.

[triceratops]

Where was it suggested that it caused a budget crisis? This started from https://news.ycombinator.com/item?id=47938121 which said "Proposition 13 limits property tax collection, which warps housing development and many other factors."