Disparities in Property Taxes Created by Proposition 13

I read with interest the letters (Feb. 2) concerning Proposition 13. Frankly, I found both sides of the debate persuasive. On the one hand, it is unfair when two people living side by side in houses of the same value are paying drastically different taxes, based merely on when they bought their houses. On the other, if someone bought a house for $50,000 the fact that the house is now worth, on paper, $100,000 does not necessarily mean that the owner has the ability to pay a higher tax.

I think there is a very equitable solution. Taxes on property should rise along with the property value. However, an owner of property can decide to pay only the portion of that tax which would have been applicable at the time the property was purchased, increased by a maximum of 1% per year. The balance of the assessed taxes would be deferred until such time as the property owner either realized a profit on the sale of the property or died (in the case of a home owned by a husband and wife, when both die), at which time the balance due would be assessed against that profit or against the estate. The owner could, if desired, pay a greater portion or all of the tax when due, and avoid this later payment.

Owners of identical property will be liable for identical taxes, but no owner will be taxed out of property based upon a paper increase. Only when an owner actually sees the profit from increased value will that owner’s fair share of taxes become due.

JOHN HAMILTON SCOTT

Van Nuys