User:Prop13Cabbage/sandbox

=Prop13 Tax Recapture On Sale=

A proposed change to prop 13 to retroactively recapture the lost tax revenue at the time of sale by summing the differences between the actual taxes paid each year and the taxes that would have been paid using assessed values calculated from a straight line between the original purchase price and the final sale price over the entire time the home was owned. This amount will be owed in taxes at the time of sale. This allows older homeowners to keep their homes, but recaptures the capital appreciation benefit they received from urban development and services paid for by tax dollars they did not contribute too.

Example
Below is an example of the calculation of taxes owed at the time of sale for a house purchased in 1959 for $47,000 and sold in 2012 for $720,000. A total of $162,123.66 will be owed in taxes at the time of sale.

Taxes Owed at time of sale (Sum of differences between taxes paid and taxes based on straight line) = $162,123.66