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Old 08-23-2008, 03:09 PM
 
Location: Malibu/Miami Beach
1,070 posts, read 2,884,898 times
Reputation: 427

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Quote:
Originally Posted by ndfmnlf View Post
Where I live in Illinois, most of the property taxes are used to fund the local public schools. I assume the same is true for California. The better the schools, the higher the value of the surrounding real estate. Homebuyers often look at the quality of the schools in their buying decisions. To the extent that higher property taxes improve the local schools, the homeowners benefit due to the higher values of their homes. So you do get something in return from paying such taxes.
OK.. My total annual property tax is $250,000,on two property's and my kids go to private schools which cost $60,000 per year.....exactly how do I benefit?
I still Love California.
I just consider it`s Charity with no Tax concessions.
And my kids will soon be at public school..because they want it!!
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Old 08-23-2008, 03:11 PM
hsw
 
2,144 posts, read 6,204,415 times
Reputation: 1507
State income tax rates and relative cost of housing are prob more relevant than property taxes for most buyers of $10MM+ houses...

CA and NY have prob highest income tax rates in US (and many of the 7-9-figure incomes).....but Manhattan/BevHills housing is generally 50% cheaper than London's W End...

Many in SiliconValley who sell much stock/co. in a given yr often relocate technically to LasVegas or to London to avoid CA income taxes...

Many hedge funds were set up in Greenwich, not Manhattan, to have CT's lower state inc tax (and lower housing costs and property taxes)....and some NYC guys, upon selling a firm, also relocate to London for a yr, to avoid state taxes on gains....

Unlike 10-20yrs ago, the affluent can more readily play legal tax arbitrage games...simply move businesses to low-tax areas...or retire for a yr or two (get that yr abroad missed in college)...gotta love the ever-more virtual world of tech and finance....and the reality that most who own $10MM+ houses tend to own 3-4 such houses in strategic, desirable locales....

BTW, high property taxes justified by good public schools is a middle-class argument...I suspect vast majority of those w/$10MM+ houses in BevHills/Woodside/Greenwich/Manhattan send their kids to private schools, no matter how allegedly good are the public schools....apparently, even BH public schools now have young criminals who are eager to develop their skills on their affluent classmates...gotta start those careers in violent crime early...reading/counting is over-rated...
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Old 08-23-2008, 03:17 PM
 
4,182 posts, read 5,662,308 times
Reputation: 1719
Quote:
OK.. My total annual property tax is $250,000,on two property's and my kids go to private schools which cost $60,000 per year.....exactly how do I benefit?
Did your property appreciate over the last few years? If so, what were the factors that made that happen? Is it reasonable to suppose that good public schools had something to do with it? Not saying that's what happened to you specifically....I'm just saying that as a rule, good schools help support local property values. And if good schools got that way through adequate funding from property taxes, then the homeowner did benefit from the taxes.

Besides, it's not like someone put a gun to your head for you to buy property on which you had to pay $250K in taxes, yes? It was your uncoerced decision to buy that much property.
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Old 08-23-2008, 03:26 PM
 
4,182 posts, read 5,662,308 times
Reputation: 1719
Quote:
BTW, high property taxes justified by good public schools is a middle-class argument...I suspect vast majority of those w/$10MM+ houses in BevHills/Woodside/Greenwich/Manhattan send their kids to private schools, no matter how allegedly good are the public schools....apparently, even BH public schools now have young criminals who are eager to develop their skills on their affluent classmates...gotta start those careers in violent crime early...reading/counting is over-rated...
It's not so much that people who buy those homes and pay those taxes would necessarily use the public schools. It's the perception of value that those schools give to potential homebuyers that helps support the real estate market. You could send your kid to private school and then say you don't really benefit from the property taxes you paid (and therefore you complain about being fleeced), but if your house appreciated in value because your tax dollars were able to enhance the quality of the local public school, you still benefited from them.

And by the way, what's with this "middle class argument" thingy? Is "middle class" supposed to be a slur?

Last edited by ndfmnlf; 08-23-2008 at 03:35 PM..
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Old 08-23-2008, 03:53 PM
 
Location: Malibu/Miami Beach
1,070 posts, read 2,884,898 times
Reputation: 427
Quote:
Originally Posted by ndfmnlf View Post
Did your property appreciate over the last few years? If so, what were the factors that made that happen? Is it reasonable to suppose that good public schools had something to do with it? Not saying that's what happened to you specifically....I'm just saying that as a rule, good schools help support local property values. And if good schools got that way through adequate funding from property taxes, then the homeowner did benefit from the taxes.

Besides, it's not like someone put a gun to your head for you to buy property on which you had to pay $250K in taxes, yes? It was your uncoerced decision to buy that much property.
As I stated I Love our lives here I just think that with greater insight this Country could be even better!
Why force individuals to seek out "creative solutions"?
Lump sum taxation works in Switzerland why not in the US?
Give the people options.
Not only to make money but to secure it.
Encourage spending and trade, America is no longer a free market economy it day by day creeps to total State control.
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Old 08-23-2008, 04:01 PM
 
4,182 posts, read 5,662,308 times
Reputation: 1719
Well, we could have a flat tax system here, which simplifies the tax code. The problem is, it will meet significant opposition from affluent homeowners who currently benefit from the mortgage interest and property tax deduction (a government subsidy to homeowners), which will be eliminated by the flat tax system.
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Old 08-23-2008, 04:15 PM
 
Location: Cincinnati
1,749 posts, read 7,549,930 times
Reputation: 758
People who buy $9m houses can afford the taxes. If they can't, they have no business buying a home that expensive. There are mind-blowing homes much less expensive. I know one for 3.2 in Malibu that's out of this world.
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Old 08-23-2008, 04:37 PM
 
Location: Hot Springs, AR
5,612 posts, read 13,247,655 times
Reputation: 3740
Quote:
Originally Posted by impala666 View Post
OK.. My total annual property tax is $250,000,on two property's and my kids go to private schools which cost $60,000 per year.....exactly how do I benefit?
I still Love California.
I just consider it`s Charity with no Tax concessions.
And my kids will soon be at public school..because they want it!!
How d oyou benefit? Let's see...based on the above information I'll surmise you live in an affluent area which means if you call the police, they'll actually come. Along with fire fighting services, beautifully manicured parks, working street lights. How do you think that all gets paid for?
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Old 08-23-2008, 06:40 PM
 
Location: So Cal
38,781 posts, read 37,969,142 times
Reputation: 39631
Quote:
Originally Posted by impala666 View Post
My motives for starting this thread was to inform people in the UK,who may be considering the move to the US that practices are different.
It is not considered unusual or risky in the UK to have almost all of your accrued wealth tied up in property as you can see from the property price rises from 1958 to the present it has been a very lucrative thing to do.
Historically, the stock market has out performed real estate as far as investments are concerned.
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Old 08-24-2008, 04:12 AM
 
Location: Malibu/Miami Beach
1,070 posts, read 2,884,898 times
Reputation: 427
Quote:
Originally Posted by Chowhound View Post
Historically, the stock market has out performed real estate as far as investments are concerned.
Like from March 2000 to October 2002.
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