Lawmaker to introduce property tax slowdown for Savannah businesses

[pink caddy]

I would love to spend more time on B street but the thought of parking just for lunch is a bummer. I'm working on a five month project right now four blocks away so yesterday and today I just walked over leaving my truck on the project site. Yesterday it was for Fed X. Great place. Today lunch at Kyat. Even greater place... Lol. So I'm going to B street when and while its in my favor.

[ajc100890]

My family has been here about 50 years. Somewhere around 2000, we started shopping downtown again. Slowly over the next decade, as the malls became increasingly subpar and Broughton Street bounced back to life, we increasingly shopped downtown. 6 years into the new decade, I can count on two hands the number of times I have been into either mall.

Now, my parents cringe at the thought of going to the Southside. A day/night out on the town for our family may include going to a program at one of the museums or theaters, dining at a local restaurant, and getting ice cream from Leopold's. If we need to buy someone a gift, it comes from a local store: Savannah Bee, Paris Market, etc.

I quite enjoy our local options, but I enjoy some of the national convenience. For instance, I like J. Crew and Banana Republic's clothing. It's consistent, and I know what I'm getting from either of those stores. And, I still shop at the local men's stores.

Recently, we were in 24e. and the sales associate asked where we were from. We told her Savannah and she seemed shocked. I guess we're atypical locals.

[Newsboy]

Originally Posted by ajc100890

My family has been here about 50 years. Somewhere around 2000, we started shopping downtown again. Slowly over the next decade, as the malls became increasingly subpar and Broughton Street bounced back to life, we increasingly shopped downtown. 6 years into the new decade, I can count on two hands the number of times I have been into either mall.

Now, my parents cringe at the thought of going to the Southside. A day/night out on the town for our family may include going to a program at one of the museums or theaters, dining at a local restaurant, and getting ice cream from Leopold's. If we need to buy someone a gift, it comes from a local store: Savannah Bee, Paris Market, etc.

I quite enjoy our local options, but I enjoy some of the national convenience. For instance, I like J. Crew and Banana Republic's clothing. It's consistent, and I know what I'm getting from either of those stores. And, I still shop at the local men's stores.

Recently, we were in 24e. and the sales associate asked where we were from. We told her Savannah and she seemed shocked. I guess we're atypical locals.

I'm with you about Downtown. And I get the same thing from a lot of workers downtown. "Where are you from?" Here! I don't do a lot of shopping but I do enjoy walking the streets, going into stores and chatting up employees, stopping by to see friends at various places of business ... and most of all, meeting tourists and engaging them in spirited conversations. Seriously, the VERY BEST thing about living here is just hanging out downtown and engaging strangers and meeting people. It really is true: Savannah is one of the friendliest cities in the world because it makes people feel good.

[Ultrarunner]

Originally Posted by bellhead

Completely disagree.

Other states that have these type of laws strongly favor businesses and owners who have been at the same place for a long time giving them an unfair competitive advantage due to their much lower tax bills. The results are properties are not offered for sale very often and distort the prices of the properties which do come on the market.

The biggest market of this effect is from California and their proposition 13. Here is an example...

The Lock-in Effect of California's Proposition 13

As a result of Proposition 13, there are obvious distortions in the real estate marketplace. For example, in 2003 financier Warren Buffett announced that he pays property taxes of $14,410, or 2.9 percent, on his $500,000 home in Omaha, Nebraska, but pays only $2,264, or 0.056 percent, on his $4 million home in California. Although Buffet is known as an astute investor, the low property taxes on his California home are not attributable to his investment prowess, but rather to Proposition 13.

California's Proposition 13

Their is another example of a Grocery store in Hollywood which had been at the same location for 50 years paying 10k a year in taxes while a new store close by was paying 100k a year.

Please realize Prop 13 is silent as to purchase date...

I bought 13 years ago and paid much more than my new neighbor that bought in 2012... and his home is newer and larger... his taxes are less.

Prop 13 is based on value at the time of transfer... nothing more or less.

It also requires voter approval for new property assessments.

I fully intend to be one of those sitting pretty in 30 or 40 years.

The thing about Prop 13 is it applies to each and every assessed property in the State...

Again... matters not that the grocery store has had the same owner for 50 years because Prop 13 became law in 1978

[bellhead]

Originally Posted by Ultrarunner

Please realize Prop 13 is silent as to purchase date...

I bought 13 years ago and paid much more than my new neighbor that bought in 2012... and his home is newer and larger... his taxes are less.

Prop 13 is based on value at the time of transfer... nothing more or less.

It also requires voter approval for new property assessments.

I fully intend to be one of those sitting pretty in 30 or 40 years.

The thing about Prop 13 is it applies to each and every assessed property in the State...

Again... matters not that the grocery store has had the same owner for 50 years because Prop 13 became law in 1978

How much has it screwed up the state fiscally in the long run?

A lot of people argue that it has led to the decline of the state's school system from one of the best in the nation to a mediocre run of the pack system. Or the state's college system?

[Ultrarunner]

I'm in the SF Bay Area and admissions to the local Universities is at an all time high... Berkeley, UCSF, San Jose State and Cal State Eastbay are turning away students...

The thing to remember is California has the big 3 taxes... Property, Sales and Income.

Neighboring States don't... Oregon is Sales Tax Free and Nevada and Washington have no personal Income Tax.

The Government Unions have been the most outspoken against Prop 13 with the Teacher's Union leading the fight and public safety right behind... it's really about pension funding.

Twelve friends from High School went into Law Enforcement and all are retired... all have over 100k retirements plus lifetime medical... one retired from Oakland at age 52 with 180k pension and lifetime medical... got bored and went to work for the Sheriff for another 130k.

There seems to be plenty of money in this State with a never ending stream of people moving to the SF Bay Area...

I pay the highest Property Tax for the smallest and oldest house on my street... I knew going in what my taxes would be based on my purchase price... Property Tax went from $1200 to $8800 the first year... many of my neighbors built their homes in the 1950's and they make the area the great place that it is...

Mom lives nearby... she lives on 24k social security... owns her home, a 15 year mint Toyota... is able to do as she pleases... her tax is 2k... if she sold it would be close to 12k.

Prop 13 sets the Statewide Rate at 1% of assessed value... my city and country add another .7% so my tax rate is 1.7%... part of the extra tax goes to stadium concessions for the Oakland Raiders who want to leave with taxpayers on the hook for 15 more years the cost to build Mount Davis, the name we call the expansion of the stadium.

I've owned my 1725 square foot 1958 ranch style home 12 years and my "Low" prop 13 property tax is just under 10k... still has 1958 everything including the Formica Counters and Lino Floors.

Thankfully the US Supreme Court ruled Prop 13 did not violate the constitution...

Washington State had a similar measure called I-747 which voters passed and was later tossed out... my assessment there increased 80% in one year from what I paid for the place a year prior... an 80% property tax on a home you plan to retire is a nightmare scenario... back to California for me!

There was also a lot of corruption in the Tax Offices with some committing suicide or going to prison for under the table deals... Prop 13 reduced volumes of tax code to a few simple paragraphs and eliminated "Opinions" of value.

Voters can always approve taxes higher than Prop 13 and for schools it requires 55% voter approval.