Skip to comments.California Homeowners Getting A Break (Property taxes to fall)
Posted on 12/31/2007 7:31:54 AM PST by BJungNan
In California, thousands of homeowners are having their assessments reduced under a decades-old state law, and lower tax revenue because of the weaker housing market is likely to start placing a strain on state and local governments.
A study last month by the U.S. Conference of Mayors predicted that California would...
(Excerpt) Read more at desertlocalnews.com ...
Wonder how long it’ll take Arnie and the rest of the CA socialists to overturn this law.
Prop 13 has stood up well over time. There has been some nibling away at it, but over all it has held up.
Property owners are the taxpayers of last resort because they can’t pick up their property and run.
When programs which were cheerfully mandated in fatter times and are now regarded as entitlements create an “alligator” which gobbles up the budget.
When “sin” taxes will no longer bear more strain.
Then the flood of red ink gets dumped on the property owners.
Contrary to the addition to the title, the article isn’t about property taxes.
California, you see, charges a sales tax on home sales.
The author of the brief article is under the misimpression that lower government *appraisals* of homes winds up lowering the sales tax on said homes, however, so the confusion is understandable.
Anyway, the net result is that California government entities like towns and counties should expect less sales tax income in 2008 because fewer homes will be sold, and those that do sell will go for lower prices.
I disagree. Prop 13 established that property taxes are tied directly to the sales price at time of acquisition. Past that time, there are severe limits on any increases in property taxes as long as the ownership of the property doesn't change.
But another law permits homeowners to ask for a re-appraisal if the market value of their property significantly declines.
I know a person who purchased a condo mid last year for $375k. The market value appears to have declined with similar condos now selling for $300k.
The annual property tax on such a condo will be $3750 initially. A re-appraisal at $300k would immediately lower the rate to $3000. The new rate would only be permitted to rise at about 2% or so per year, I believe, not even matching inflation.
Unlike in my relatively stable rural locale, most homes get new owners about every five years, I think. That would mean a considerable loss of property tax revenue which might already include nearly half of all homes in the state and increasing to include an even greater number in the next two or three years.
This is not going to be a good time to be a liberal in Kalifornia. Lots of chickens are coming home to roost. If you can't live on the eggs, it will be time to add chicken to the menu.
Lower property taxes?Now we can’t have THAT can we?
True,tho,mine went down about 100$ this year.
Not much,but I’ll take it over the past ten years or so increases.
The flip side of the equation is that my condo has declined in marketable value.
Declined? Only declined? Compared to many, you are doing good. Some home values have dropped so much that people are paying to give their home away.
Great buys out there. A home nearby that sold for $510,000 is now on the market at $320,000 and the realtor said to put in the offer at $280,000.
Well,one bedrooms here in Oakland were around 300,000 dollars last year.Now they are in the mid or low 200’s.
Yet I have no plans to move or sell.Where would I go?My family,job and roots are all here in the Bay.I lived in New Orleans for several years but now my once favorite town is”no place to be somebody”.
I agree with you. The market price of a house only counts when you are buying and selling. Inbetween, it is a place to live.
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