OT: Taxes. Farck

[pdonk]

Originally Posted by saab2000

Where do you live?

Toronto. So it's really only 750k usd.

Our property taxes are stupidly low. Similar values homes in nearby places have taxes in the 15k range.

[oldpotatoe]

Originally Posted by sfscott

more evidence of people routinely voting against their self-interest based on aspirations.

I'll bet the 'big boys', like those with 7 and 8(and 9!!) figure incomes don't have to worry about the 'new' tax laws..people on main street get screwed again..

[seanile]

Originally Posted by NHAero

Are you saying that CA property taxes are different on two homes of the same value, depending on when the owner bought it?
If so, that hasn't been challenged in the courts?

My understanding of prop 13 is as follows:
If you bought it in the 80s, housing was cheap, then the taxes were 1% of the assesed value. The yearly escalation of that tax amount, is limited to 2% annually. So if you owned the house back in the 80s, and your house has appreciated a great deal since, your taxes have only gone up 2% year-over-year. Whereas if you bought recently, your taxes are set at 1% of the currently assessed value at the time you bought it.
Thus the statement of the new owners carrying the burden of the property tax disproportionately.

It was deemed constitutional in the Supreme Court in the late 70s..
The wiki for prop 13 is well written

[MikeD]

Originally Posted by pdmtong

Having a high property value is useless to me since I am living where I want to live. I do not have any interest in cashing out and moving somewhere else. The good news is my daughter will be fine long after I am gone. The bad news is I intend to live for awhile longer.

no kidding. most people moving in around here now are paying $30-60....

Property taxes in California are a little over 1% of assessed value https://www.investopedia.com/walkthr...rty-tax-guide/, much better than states like NY to be sure.

Housing costs in CA are too high, and deductions for property taxes and mortgage interest are just driving prices higher. Maybe they should be eliminated completely and prices would drop.

[Ken Robb]

I became a Realtor in 1972 which was pre-Prop 13. Property values were just starting to shoot up. I got a number of complaints from people who owned homes near places I had sold for a lot more than anyone had paid. Each new sale at higher prices provided "comps" for the Assessor to use to raise everyone's assessment and thus their tax bills. Many folks on fixed or relatively fixed incomes were being taxed out of homes they had owned for many years.

Prop 13 was a real blessing then and it still is because inflation isn't going away in the long run so even though today's buyers may pay more taxes than their neighbor who bought a similar home 5 years ago (or more) the new buyer can still project and budget for his housing expense in the future.

Anyone who thinks raising taxes on commercial or rental properties won't result in higher rents for tenants won't result in higher prices for goods/services provided by tenants is dreaming.

[weaponsgrade]

Originally Posted by NHAero

Are you saying that CA property taxes are different on two homes of the same value, depending on when the owner bought it?
If so, that hasn't been challenged in the courts?

Yes, I'm not complaining (too much) since I bought somewhat early. My neighbor right next to me though lives in the same house he grew up in and his taxes are pocket change.

[jlwdm]

In my county property taxes run from about $2.30 to $2.90 per $100 of valuation. So a million dollar home is $23-29k. So the $10,000 deduction is going to have a big impact.

Jeff

[bigbill]

Last summer I moved to AZ from Texas for a new job, got divorced, sold a house, sent a kid to the Naval Academy, and moved/combined 401K's. I also got a relocation package with my new job. I knew the divorce was coming so I changed withholdings to single/0 back in March so I've probably overtaxed myself, I'll see in a few weeks when the rest of my documents are available. My son started the academy before the end of June so I provided support for less than half a year and for tax purposes, he's in the Navy. He'll file his own. The upside is that the divorce finalized last November so I'll be able to deduct spousal support for the next 4 years that I pay it.

The downside is the state tax in Arizona versus none in Texas. The new job pays much better than the Texas job so that works out. My overall cost of living is much less and for now have no intention of buying a house. Next year will be better after I maximize my 401 contributions. I'd been holding off until after the divorce finalized.

[GregL]

Originally Posted by oldpotatoe

I'll bet the 'big boys', like those with 7 and 8(and 9!!) figure incomes don't have to worry about the 'new' tax laws..people on main street get screwed again..

That's because the "big boys" and girls got a proportionally greater break on their tax rates. And most of those same folks make their money on investments that are taxed at the historically low rate of 15%. Goodbye democracy, hello oligarchy...

Greg

[mdeth1313]

Originally Posted by SpokeValley

...and any other high tax, high property value state. There are several.

Yes, in most cases the ones that send more federal tax dollars in and receive far less in return.

[GonaSovereign]

Originally Posted by pdonk

Toronto. So it's really only 750k usd.

Our property taxes are stupidly low. Similar values homes in nearby places have taxes in the 15k range.

Yes, like mine. Sigh.
Ps: income taxes are much higher here as well. I give up a much larger percentage of my take-home than my US colleagues (although those in CA take home less than those in AZ, for example.) in Canada those who make more pay a significantly higher percentage than those at lower marginal rates.

Honestly, i get a lot for my taxes and am happy to pay them. Things cost money. I want things like roads and hospitals and sewer systems. I'm familiar with places that have neither taxes nor infrastructure...it's not better.

[pdmtong]

Deleted.

[MikeD]

Deleted.

[joosttx]

Originally Posted by GonaSovereign

Yes, like mine. Sigh.
Ps: income taxes are much higher here as well. I give up a much larger percentage of my take-home than my US colleagues (although those in CA take home less than those in AZ, for example.) in Canada those who make more pay a significantly higher percentage than those at lower marginal rates.

Honestly, i get a lot for my taxes and am happy to pay them. Things cost money. I want things like roads and hospitals and sewer systems. I'm familiar with places that have neither taxes nor infrastructure...it's not better.

kinda the way I feel about it too.

[oldpotatoe]

Originally Posted by shinomaster

Why should you pay taxes? Does our fearless leader?

Nobody knows...maybe vlad’s tax guy but......