New California Real Estate Tax
New California Real Estate Tax proposal
New California Real Estate Tax
Well, saying that this is a new California real estate tax is not entirely accurate. What it is is a new proposal for a fee on all real estate sales in California.
Now, not being a lawyer, I’m not really sure what the difference is between a fee and a tax. But, the bottom line for this proposal is that if it is passed, every time a property transfers ownership, the state will collect this fee.
Pretty much my take on this is that every time California creates one of these new taxes or fees, they always start out low. Kind of like our gas tax and then slowly increase over the years.
Currently, California has the second highest gasoline tax in the nation! And there’s a new Cap & Trade tax that is scheduled to go into effect sometime this year. That would boost California’s gasoline tax to be the highest in the nation!
Yes, the new California taxes and fees start out low and they’ll also are usually named something so politically correct that who would not want to pay a little to support that cause or project?
A good example of this, was the proposed bond issue a couple years ago for California’s high-speed rail system. This ‘high-speed’ train project is anything but high-speed, and all the protections that were written into the original bond issue, that were a major part of the marketing of this bond to the California voters, were eliminated by the state legislature and for some reason it’s still moving forward and will undoubtedly be the biggest taxpayer boondoggle in the history of the country!
So, let’s go back to the new proposal for real estate tax and fee on the transfer of any property in California. This new tax/fee was announced by Toni Atkins to expand affordable housing in California by collecting a $75 fee to record real estate documents within the state.
Although this is a noble cause, I personally do not see why it should be totally born by real estate transactions. To me, this is just another method for transferring wealth on the backs of the middle class.
Actually, the way things have been going in California, it seems like it won’t be long before the middle class is so insignificant that California will be just the ultra-rich and the poor.
Perhaps a total elimination of all California fees/taxes for developers for building modest and low cost housing in California should be considered. I feel that this and new incentive fees and tax breaks to builders to encourage them to build low income and modest housing in California is a more sensible way to go.
Additional information about this can be viewed on Yahoo News.
New California Real Estate Tax
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A fee is supposed to be tied to the actual cost of whatever it is to be accomplished.
If this fee is to be increased, the monies collected should go back to the source of the revenue i.e. the counties.
The funds should not be placed into the general fund but placed into an account that is identified for real estate related issues.
The same goes for fuel tax, those taxes also should also be isolated for road and bridge upkeep and improvements rather than placed into the general fund where they can no longer be tracked.