Posted on 01/09/2012 3:59:34 PM PST by So Cal Rocket
As many as 5 million California property-tax payers who have been taking the entire amount they pay off their state income taxes could see a major cut in their deductions when they file next year.
Beginning with the 2012 tax bill (the one due in April 2013), the state Franchise Tax Board will require property owners to break down their property taxes into deductible and non-deductible portions.
That means property owners who have been deducting their Mello-Roos fees — often running into thousands of dollars — will no longer be able to deduct those or any other special assessments like vector control or mosquito abatement.
(Excerpt) Read more at economy.ocregister.com ...
so no one will fix up their property so the taxes don’t increase and pretty soon that tax base will crumble too. So, if no one is making any income because there are no jobs, and the property tax goes down because no one keeps up their property, pretty soon the government won’t have any revenues to count on. And people will keep driving their beaters so they don’t have to pay big car taxes, geez I think the bureaucrats have outsmarted themselves.
LOL!
Has there yet been ANY spending cuts to save the California budget?
CA has been swirling around the toilet bowl for years. It’s really a shame that the Sacramento, LA and San Fran stink gets on everyone out there.
I think the bureaucrats have outsmarted themselves.
You could be very right. The time comes when a parasite finally devours enough of its host and the host dies. California was and is still beautiful in many places, too bad that beauty doesn’t translate into common sense or even fiscal sense.
A simple fix. Just use Geitner’s Turbo Tax—roll in the dough!
“He said the new scrutiny of property taxes is not due to any political pressure to increase tax revenues to close the state’s gaping budget deficit.”
Yeah, right! The bureaucrats here in California are going to squeeze the taxpayer any way they can figure out how to do. In doing this, they are going to force some marginal homeowners to go under( just look at the sample tax bill with about half now not deductible). So when the homes go to foreclosure, who’s going to pay the taxes? If you want less of something, tax it more and your prayers will be answered. No one in government wants to focus on the need to substantially reduce government’s take, but it’s going to happen irrespective of what they want. It just has to.
“The difference between deductible and non-deductible property taxes is not a new rule. Mello-Roos fees, which pay for roads, schools, fire stations and other public facilities in new developments, have not been deductible from state income taxes since the legislature authorized the special assessments 30 years ago.”
If you weren’t cheating on your taxes you will see no change.
All your money are belong to us!
Mello-Roos is tax deductible in some cases but not in others.
Many communities requiring new schools and infrastructures such as public parks and roads impose Mello-Roos. While property tax is assessed as a percentage of the value of the home, Mello-Roos is independent and could rise or lower and is not subject to Proposition 13.
Smells like a property tax to me!
An end-run around the famous Prop 13, I am surprised that was found constitutional. (lower case for the state)
The Tax Man commeth. I prefer to see him goeth far, far away.
So simple .... sometimes it’s deductible sometimes it is not. But it’s the same tax ... but you don’t understand, it’s always deductible except when it’s not .... got that or do we have to do a follow up frontal?
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