The Real Reason We Don’t Build in Palo Alto (or Any High Cost Part of California)
Eric Kingsbury
358

Agree with everything you’ve written! Well done! For folks interested in Prop 13 reform, check out the Evolve campaign: http://www.evolve-ca.org/. Unfortunately, Prop 13 is even more insidious than just its effects on zoning. Prop 13 actually capped taxes not just for residential property, but for commercial property, too. And because commercial property never actually has to change hands (it’s easy to restructure ownership by adding and taking away owners from a corporation without triggering reassessment), our property taxes have also turned upside down. Corporations used to pay the bulk of property taxes, but now 75% are paid by residential properties and places like Disney literally pay as much in property taxes as a reasonably-sized single family home. As you can imagine, this gives a strong advantage to incumbent corporations and a bigger hurdle for start-ups to overcome.

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