Prop 30: Southern California vs Texas

[Diego Mamani]

[quote=bearishgurl]I’ve been trying to interest my youngest to attend college out of state in any of three “flyover” states where they are either eligible for in-state tuition or nearly a “full-ride” scholarship for all four years.[/quote]BG, it looks like you’ve done your homework. Would you mind sharing a few school names that you particularly like?

[bearishgurl]

[quote=Diego Mamani][quote=bearishgurl]I’ve been trying to interest my youngest to attend college out of state in any of three “flyover” states where they are either eligible for in-state tuition or nearly a “full-ride” scholarship for all four years.[/quote]BG, it looks like you’ve done your homework. Would you mind sharing a few school names that you particularly like?[/quote]

Diego, I can’t at this time because the scholarships have to do with my kid’s heritage. These schools would be prohibitively expensive for all other out-of-state applicants.

[Diego Mamani]

[quote=EconProf]U haul truck prices are based on supply and demand.
It costs 983 to take a truck from San Antonio to San Francisco, and 1693 to go the other direction.[/quote]Thanks much! We love data here. This price difference may be due to either of these two (or a combination of them):

1. More people are moving from southern TX to the Bay Area than the other way around.
2. There’s more demand for trucks for intra-regional moves in southern TX than for the Bay Area. (Hence, U-Haul charges you a premium if you want to remove its trucks from there.)

#1 would argue that the Bay Area economy is growing faster than the one in southern TX. #2 would argue the exact opposite.

[desmond]

Diego, yes, the kids were born and raised here in SoCal, both attended college in Texas. My son worked in L.A. right after college for a year and transferred to Texas as soon as a territory opened. For young people starting out it is ideal with plenty of opportunities. Our daughter lived out there year round once she started college and stayed when she graduated last May.

[sdduuuude]

[quote=cvmom][quote=CDMA ENG]I also use to have a friend that said that you could deduce the true cost of living in a city by only looking a the cost of a jug of milk.[/quote]

Reminds me of the Big Mac index that the Economist uses to compare cost-of-living.[/quote]

From this I can conclude that the cost of living in an airport or professional sports venue must be incredibly high.

[paramount]

In California the only people who matter are gov’t workers and their subjects.

A policy of confiscation applies to everyone else.

[CDMA ENG]

[quote=sdduuuude][quote=cvmom][quote=CDMA ENG]I also use to have a friend that said that you could deduce the true cost of living in a city by only looking a the cost of a jug of milk.[/quote]

Reminds me of the Big Mac index that the Economist uses to compare cost-of-living.[/quote]

From this I can conclude that the cost of living in an airport or professional sports venue must be incredibly high.[/quote]

I take if you are refering to the Micky Ds and not the jug of milk.

CE

[gzz]

“Real-estate tax on either commercial or residential properties is essentially a regressive tax.”

That’s not right.

The following taxes are regressive:

Sales tax
Auto registration fees
Excise taxes (on alcohol, gas, tobacco)
Flat state fees (for driver licenses etc)
Flat “per property” assessments for special districts

The following taxes are mildly progressive:
Income
Residential property

The following taxes are very progressive:
Commercial property
Capital gains
Inheritance
Taxes on 2nd residential properties.

Businesses can only pass on increases in their “marginal” taxes. Commercial property taxes are not marginal. At worst, it will discourage investment in commercial property. Offsetting this, however, is that commercial property will become cheaper, facilitating new investments. People sitting on vacant commercial property that is taxed at 1% of a 1975 assessment may also decide to develop it rather than waiting around forever.

[CA renter]

Exactly right, gzz. Thank you for your post.

[CA renter]

[quote=paramount]In California the only people who matter are gov’t workers and their subjects.

A policy of confiscation applies to everyone else.[/quote]

Are you on auto-record or something? You never say anything useful; you just keep regurgitating these talking points without ever addressing facts that counter your nonsensical blather.

Address the problems caused by Prop 13, especially as it applies to commercial property owners, residential investors, and owners (including owners like Pardee) who are sitting on vast tracts of incredibly valuable land, yet are not paying market property taxes. Why are taxpayers (and public sector workers!) expected to continue subsidizing the profits of these entities?

[bearishgurl]

[quote=CA renter][quote=paramount]In California the only people who matter are gov’t workers and their subjects.

A policy of confiscation applies to everyone else.[/quote]

Are you on auto-record or something? You never say anything useful; you just keep regurgitating these talking points without ever addressing facts that counter your nonsensical blather.

Address the problems caused by Prop 13, especially as it applies to commercial property owners, residential investors, and owners (including owners like Pardee) who are sitting on vast tracts of incredibly valuable land, yet are not paying market property taxes. Why are taxpayers (and public sector workers!) expected to continue subsidizing the profits of these entities?[/quote]

CAR, you forgot about the thousands of SF landowners (comm’l AND residential) who have multiple holdings in the country’s most expensive city for which they are paying =<$400 to about $1600 annually in property taxes, all due to these parcels' "eligibility" to be assessed pursuant to Props 13, 58 and 193. Next stop .... Santa Monica .... where multiple aging beachfront towers have been subject to "rent control" for decades. How much would you estimate the assessments are on those?? Does an average of $15K per unit sound about right?

Then we move down to that cute 1100 sf Birdrock cottage with a “peek view” of whitewater … currently owned by a single 62 yo “heir.” She’s actually paying $368 annually in property taxes.

And everything in between and beyond in CA’s finest coastal communities …. I could go on … and on :=0

Do you think CA’s cities, counties and Sacramento are actually getting their “fair share” from all of their longtime and/or “native” residents (whose families used and continue to use the exact same services as the rest of us)?

Think again.

[CA renter]

BG, I don’t even think we need to worry about the inherited aspect of Prop 13, as long as it was for a **single primary residence,** but do think that we need to allow people to EITHER:

-retain the Prop 13 basis and disallow the stepped-up cost for cap gains upon sale

OR

-allow the heirs to step up the cost basis for cap gains, and use this value for property taxes.

It has to be one or the other. It is totally wrong that heirs get to use their ancestors’ cost basis for property taxes, and then use the stepped-up value for cap gains.

————

I know an owner of an older, mid-sized apartment complex in LA, and their property taxes are less than $12,000/year!

[spdrun]

Frankly, in an ideal state, R.E. taxes would approach zero, and all revenue would be from income and sales tax.

[bearishgurl]

[quote=CA renter]…I know an owner of an older, mid-sized apartment complex in LA, and their property taxes are less than $12,000/year![/quote]

Do you know how many units are in this complex and their approximate composition (ie 40-1br, 30-2 br and 16 3-br units)?

This would shed some light on the per-unit breakdown of that $12K tax bill.

Thx.

[bearishgurl]

[quote=spdrun]Frankly, in an ideal state, R.E. taxes would approach zero, and all revenue would be from income and sales tax.[/quote]

If a system like this were in place, Gen Y (that’s YOU, spdrun) would be SCREWED.

Retirees no longer have W-2 wages to pay “income tax” with and don’t “consume” anywhere near what younger generations do, so don’t pay much sales tax, either.

[Author]

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