Posted on 02/21/2009 11:13:16 AM PST by Steelfish
Car dealers fear state tax increases will put the brake on sales
Dealers say tax hikes used to help close California's budget gap will raise the cost of buying a car and drive away customers.
The levies, imposed to help close a $42-billion projected state budget deficit, will add almost $400 to the price of the average new car.
By Ken Bensinger February 21, 2009
California's auto dealers are worried that the state's new budget will put an even bigger dent in already miserable sales.
Increases in the sales tax and vehicle license fees were key components of the measure signed by Gov. Arnold Schwarzenegger on Friday.
Both raise the cost of buying a car.
(Excerpt) Read more at latimes.com ...
Thanks for the heads’ up. The repair costs so far have been pretty minor for the mileage — fuel injector failure, wiper motor failure and failed seal on 4WD front hub.
To all of you who think about this:
Do NOT even consider coming to Massachusetts. Our governor makes the Governator look like an beginner. In a state that is partially dependent on a TOURIST trade, he is in the process of HUGELY raising the cost of driving here. Stay away, for your own sake.
California is screwed up.
I don't think you lose it, but California is claiming the right to levy state income tax on it, no matter where you move.
I did it a few years back and have not looked back.
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Good for you but times have changed. The new departure tax makes it almost impossible for most of us to leave.
Besides the tax there is a maximum amount of household goods one can remove from the state now and the child abuse laws are so far very fuzzy on the trama children suffer moving out of state. /s
Wealth Tax. Initiative Constitutional Amendment and Statute.
Summary Date: 01/28/09 Circulation Deadline: 06/29/09 Signatures Required: 694,354
Proponent: Paul McCauley
Imposes one-time tax of at least 55% on property in California exceeding $15 million if single, $20 million if married. Imposes one-time tax (between 36.5% - 54.3%) on income exceeding $10 million when resident dies or leaves California. Imposes additional 17.5% tax on total incomes of taxpayers with income exceeding $150,000 if single, $250,000 if married; 35% if incomes exceed $350,000 if single, $500,000 if married. Creates tax credits. Requires State to acquire shares of specified corporations to influence environmental practices. May exempt new revenues from education funding requirements. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local government: One-time increase in state revenues potentially in the low hundreds of billions of dollars from imposition of a wealth tax, and ongoing increase in state revenues potentially in the billions of dollars from imposition of the tax on certain people dying or leaving the state. This revenue would be allocated to accomplish various goals related to environmental protection. Potential annual net increase in personal income tax revenues in the tens of billions of dollars annually. At least $8 billion annually would be allocated to the state General Fund with additional revenue allocated for environmental protection. Unknown state and local revenue reductions—potentially in the tens of billions of dollars annually—due to changes in taxpayer behavior. (08-0020.) (Full Text)
All better.
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