Considering a move back to California (pending on prop 30) (San Diego: sales, rent)

[downnice]

I lived on the west coast including California my whole life and considering moving away from Renton and am looking at all possibilities throughout the USA.

First I am leaving Renton because for the 27 years of my life 20 were in this area with 2 being in California and 4 being in Oregon. Nothing is wrong with it but need somewhere else to hang live with different climate. I'm looking for jobs in California and other states and I am considering the following places. Irvine, Anaheim, Huntington Beach, San Diego, and Palm Springs

I am looking in around 5 years to open a business and really are tolerant towards taxes but this prop 30 is scary the living hell outta here and is making me not to consider moving there. 13% is insane even for my liberal mind.


Also my price is 1500 per month on rent and to buy about $450,000


Looking for advice on those areas and other places you recommend!

Thanks =)

[pch1013]

Please tell me which part of the following is so utterly terrifying to you:

Proposition 30:

• Raises California’s sales tax to 7.5% from 7.25%, a 3.45% percentage increase over current law. (Under the Brown Tax Hike, the sales tax would have increased to 7.75%)[3][4]
• Creates four high-income tax brackets for taxpayers with taxable incomes exceeding $250,000, $300,000, $500,000 and $1,000,000. This increased tax will be in effect for 7 years.[3][5][6]
• Imposes a 10.3% tax rate on taxable income over $250,000 but less than $300,000--a percentage increase of 10.6% over current policy of 9.3%. The 10.3% income tax rate is currently only paid by taxpayers with over $1,000,000 in taxable income.[7].
• Imposes an 11.3% tax rate on taxable income over $300,000 but less than $500,000--a percentage increase of 21.5% over current policy of 9.3%.
• Imposes a 12.3% tax rate on taxable income over $500,000 up to $1,000,000--a percentage increase of 32.26% over current policy of 9.3%.
• Imposes a 13.3% tax rate on taxable income over $1,000,000--a percentage increase of 29.13% over current "millionaires tax" policy of 10.3%.
• If this proposition is passed in November, 2012, the income tax will apply retroactively to all income earned or received since the first of the year (1 January, 2012).
• Based on California Franchise Tax Board data for 2009[8], the additional income tax is imposed on the top 3% of California taxpayers.

If you would be in that category (the top 3%) if you moved here -- congratulations on your great success!

If not -- you have nothing to worry about except a 0.25% increase in sales tax. Which means you'll have to pay $1.25 extra on each iPad you buy, or $1.50 on each LCD TV, or a staggeringly outrageous $50 more on a $20,000 car.

If that's a serious concern, then you have no business moving to CA in the first place, given the overall higher cost of living here.

[loveautumn]

considering OP is coming from a state with no state income tax, it can be a bit of a shock no matter how much you make.

[downnice]

Originally Posted by pch1013

Please tell me which part of the following is so utterly terrifying to you:

Proposition 30:

• Raises California’s sales tax to 7.5% from 7.25%, a 3.45% percentage increase over current law. (Under the Brown Tax Hike, the sales tax would have increased to 7.75%)[3][4]
• Creates four high-income tax brackets for taxpayers with taxable incomes exceeding $250,000, $300,000, $500,000 and $1,000,000. This increased tax will be in effect for 7 years.[3][5][6]
• Imposes a 10.3% tax rate on taxable income over $250,000 but less than $300,000--a percentage increase of 10.6% over current policy of 9.3%. The 10.3% income tax rate is currently only paid by taxpayers with over $1,000,000 in taxable income.[7].
• Imposes an 11.3% tax rate on taxable income over $300,000 but less than $500,000--a percentage increase of 21.5% over current policy of 9.3%.
• Imposes a 12.3% tax rate on taxable income over $500,000 up to $1,000,000--a percentage increase of 32.26% over current policy of 9.3%.
• Imposes a 13.3% tax rate on taxable income over $1,000,000--a percentage increase of 29.13% over current "millionaires tax" policy of 10.3%.
• If this proposition is passed in November, 2012, the income tax will apply retroactively to all income earned or received since the first of the year (1 January, 2012).
• Based on California Franchise Tax Board data for 2009[8], the additional income tax is imposed on the top 3% of California taxpayers.

If you would be in that category (the top 3%) if you moved here -- congratulations on your great success!

If not -- you have nothing to worry about except a 0.25% increase in sales tax. Which means you'll have to pay $1.25 extra on each iPad you buy, or $1.50 on each LCD TV, or a staggeringly outrageous $50 more on a $20,000 car.

If that's a serious concern, then you have no business moving to CA in the first place, given the overall higher cost of living here.

Okay Prop 30 is less scary thanks I failed to research and listen to people in the forum. I was hearing crazy stuff =/

[downnice]

Originally Posted by loveautumn

considering OP is coming from a state with no state income tax, it can be a bit of a shock no matter how much you make.

Not a huge fan of Income but as long as it is reasonable I am A Okay

[TurcoLoco]

Originally Posted by downnice

Not a huge fan of Income but as long as it is reasonable I am A Okay

Every state has something they hit their residents with, especially in crowded, in demand states.
If there is no income tax, you will likely to have high sales tax and/or property tax.
If there is no sales tax, property or income tax will even things out.

California has seemingly too many taxes, fees and surcharges probably mainly due to bad budgeting and investments because they generate fairly adequate revenue, even know.
I know businesses get hit worse with fees/taxes compared to other states but you also have a higher foot traffic and higher clientele potential due to overcrowded cities.

If I am not mistaken, most property tax rates are around 1%-1.1%, so on a 400K house, you will be paying approximately $4000-$4400 yearly. From what I have heard, property tax in TX is like 3.5%, so you would be paying the same amount even on a house that worth about $130K-$150K. Even if the house paid off, you still pay that till Armageddon but there is no income tax in TX, sales tax is comparable. You get a speeding ticket (not cheap), the city send you a fine then the state hits you with the same amount (double fine)! Lovely, isn't it? Overall it is cheaper to live in TX (if you call it living), but more people coming to CA than leaving it (bad for us).

[Dean Trails]

Originally Posted by TurcoLoco

If I am not mistaken, most property tax rates are around 1%-1.1%, so on a 400K house, you will be paying approximately $4000-$4400 yearly. From what I have heard, property tax in TX is like 3.5%, so you would be paying the same amount even on a house that worth about $130K-$150K. Even if the house paid off, you still pay that till Armageddon but there is no income tax in TX, sales tax is comparable. You get a speeding ticket (not cheap), the city send you a fine then the state hits you with the same amount (double fine)! Lovely, isn't it? Overall it is cheaper to live in TX (if you call it living), but more people coming to CA than leaving it (bad for us).

I reside in Northern California. My modest home ( About a 400K value) should have a Prop 13 tax amount of 1%. However, this is the good part, the property has 10 special taxes and assessments that include Mosquito abatement, trails, stormwater, lighting districts and Mello-Roos. On top of that we have 6 "Ad Valorem Taxes" which includes Bart, school bonds and college bonds. My total property tax rate adds up to a 1.6%. Additional bonds were on the ballot tuesday. I havent looked to see if they passed.
I voted against them but they do win most of the time as it is "for the children". As with the National Debt, that phrase means the tax burden is for our children and grandchildren to pay off.

[Ultrarunner]

I live in Northern CA and my tax rate has been around 1.6% and will increase once the final ballots are tallied.

My tax rate is actually much higher then 1.6% because the Assessor still has me at what I paid for my home in 2005 and it was down more than 1/3 and now is closer to 80% of what I paid...

I truly do not know what the overall effect will be in dollars and cents once all the State, Local and Federal changes go into place.

I didn't think Prop 30 would pass... as they say, the people have spoken.

Did notice 4 years ago... there was much celebration at work over the election results... many went out to watch the returns...

This time around... it was a non-issue... almost no comments, no celebrations or boost in morale.

[Mr5150]

Originally Posted by TurcoLoco

Overall it is cheaper to live in TX (if you call it living), but more people coming to CA than leaving it (bad for us).

As they say: you get what you pay for!

[Ultrarunner]

Originally Posted by Mr5150

As they say: you get what you pay for!

One can only hope!