California Gives New Home Buyers $100 Million
Are our Californian politicians screwed up or what? Can you believe that just days after passing a budget, the California legislature passed and Gov. Schwarzenegger signed, on February 20, 2009, a tax credit bill (Senate Bill 15) for taxpayers who purchase a principal residence any time after March 1, 2009, and before March 1, 2010. The allowed credit is for 5% of the purchase price or $10,000, whichever is less. The state of California allocated $100 million for this credit.
Although obviously well-intentioned, personally I cannot see how after raising the sales tax for the entire state, the state income tax, and the car registration fees, the state can turn around in just a few days and give away $100 million. In San Diego alone, $100 million had to be cut from the City school budget. Perhaps not giving away this new home buyer’s credit could have avoided any city school cuts!
As a Realtor, I am happy with any program that will increase sales,. As a California taxpayer I think it's unconscionable that at a time of fiscal deficits throughout the state, that this program is being instituted.
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