Public Employee Unions want to change Prop. 13 so busness property tax goes up & up more every year. (compensation, groceries)

[2sleepy]

Originally Posted by CA4Now

Agreed! However, some are afraid that this step may lead to the undoing of the benefit to homeowners....I don't see how, though.

That's what the corporations will say in their million dollar ad buys to try to kill this but I hope people don't buy the BS!

[expatCA]

Originally Posted by CA4Now

Agreed! However, some are afraid that this step may lead to the undoing of the benefit to homeowners....I don't see how, though.

In CA they are limited, if one goes up the other will also. Beside passing a tax on businesses just increases your costs as that tax increase will ultimately come out of your pocket and at a higher level due to the costs businesses will incur with the added cost and paperwork. remember business get their money from ..... you. They don't print it, so higher taxes paid come from... you.

Glad you like increasing your costs.

Someone really needs to get intelligent economic classes back in the schools.

[2sleepy]

Originally Posted by expatCA

In CA they are limited, if one goes up the other will also. Beside passing a tax on businesses just increases your costs as that tax increase will ultimately come out of your pocket and at a higher level due to the costs businesses will incur with the added cost and paperwork. remember business get their money from ..... you. They don't print it, so higher taxes paid come from... you.
Glad you like increasing your costs.
Someone really needs to get intelligent economic classes back in the schools.

Nevada commercial property tax can be raised 8% a year but if you go to Nevada you will find the price for commodities such as food, gas, furniture, pharmaceuticals etc to be virtually identical to those in California, if what you are claiming is true everything should cost more in Nevada, right?

Prices only rise when consumers are willing to pay more, that is why prices rarely increase more than a few cents when costs go up, i.e. the cost of beef doubling a few years ago. A business can rarely if ever pass on all cost increases to consumers, if they try to raise prices too much they are very likely to go out of business.

[expatCA]

Originally Posted by 2sleepy

Nevada commercial property tax can be raised 8% a year but if you go to Nevada you will find the price for commodities such as food, gas, furniture, pharmaceuticals etc to be virtually identical to those in California, if what you are claiming is true everything should cost more in Nevada, right?

Prices only rise when consumers are willing to pay more, that is why prices rarely increase more than a few cents when costs go up, i.e. the cost of beef doubling a few years ago. A business can rarely if ever pass on all cost increases to consumers, if they try to raise prices too much they are very likely to go out of business.

Other than small businesses, most companies have National prices and they go up with costs. They may spread it around a bit, but they go up. Local small businesses have just a couple of choices; go out of business, fire an employee, move. The money has to come from somewhere and businesses can not print it so it comes our of ... your pocket.

Just check the minus at restaurants and they change constantly. They have to as most companies have minimal margins. I own 3 business in CA now and have owned business in CA since 1974. Prices go up. If they didn't a cheeseburger would still be $0.15 at McDonald's as it was when I was a kid. Disneyland charged $1.00 to get in and Knott's Berry farm was free, a movie cost an adult $1.00. The prices went up because the cost of doing business went up for everyone. Inflation is caused by ... prices going up and money being worth less. Basic economics.

[2sleepy]

Originally Posted by expatCA

Other than small businesses, most companies have National prices and they go up with costs. They may spread it around a bit, but they go up. Local small businesses have just a couple of choices; go out of business, fire an employee, move. The money has to come from somewhere and businesses can not print it so it comes our of ... your pocket.

Just check the minus at restaurants and they change constantly. They have to as most companies have minimal margins. I own 3 business in CA now and have owned business in CA since 1974. Prices go up.

You totally blew off the part about commercial property tax going up 8% a year in Nevada and prices being the same there for most goods and services as in California, how come?

[expatCA]

Originally Posted by 2sleepy

You totally blew off the part about commercial property tax going up 8% a year in Nevada and prices being the same there for most goods and services as in California, how come?

The owners have no State Income tax to pay, so they still, come out money ahead.

The overall cost of living in NV is lower than CA so prices go up, but not as much.

[2sleepy]

Originally Posted by expatCA

The owners have no State Income tax to pay, so they still, come out money ahead. The overall cost of living in NV is lower than CA so prices go up, but not as much.

No, prices consistently remain the same in both states. Your original premise that a split tax roll in California will increase prices is still flawed.

[expatCA]

Originally Posted by 2sleepy

No, prices consistently remain the same in both states. Your original premise that a split tax roll in California will increase prices is still flawed.

You have no knowledge of business.

Where would the money come from to pay the increased tax?

Lets see, NV increased their gas tax and CA did also, which one went up the most?

Then vehicle registration fees are way lower than in CA and many businesses have vehicles.
Nevada Vehicle Registration Fees

Then housing is lower and so is business property prices. I would pay about 40% less in NV for the same building I have in CA. My taxes in CA would be about the same as in NV and overall cost of business would be less. I know the costs because I am looking at moving one business out of CA to NV and the main employees are fine with moving.

Now as to property tax:

Nevada’s Constitution (Article 10, section 5) caps the property tax rate at $5.00 per $100 of assessed value. It is further capped by statute (NRS 361.453) at $3.64 per $100 of assessed value, plus 2 cents approved by the voters in 2002 for the protection and preservation of natural resources in Nevada. Currently, the maximum rate per $100 of assessed value that may be levied is $3.66. Property in Nevada is assessed at 35 percent of its taxable value.

In checking the overall tax cost under NV law the total comes out about the same as a similar property in CA (costing more), so the NV property tax is not a major issue.

So even up to 8% increase in value is no big deal due to the lower overall cost in the State.

[2sleepy]

Originally Posted by expatCA

You have no knowledge of business.

Where would the money come from to pay the increased tax?
Lets see, NV increased their gas tax and CA did also, which one went up the most?
Then vehicle registration fees are way lower than in CA and many businesses have vehicles.
Nevada Vehicle Registration Fees
Then housing is lower and so is business property prices. I would pay about 40% less in NV for the same building I have in CA. My taxes in CA would be about the same as in NV and overall cost of business would be less. I know the costs because I am looking at moving one business out of CA to NV and the main employees are fine with moving.
Now as to property tax:
Nevada’s Constitution (Article 10, section 5) caps the property tax rate at $5.00 per $100 of assessed value. It is further capped by statute (NRS 361.453) at $3.64 per $100 of assessed value, plus 2 cents approved by the voters in 2002 for the protection and preservation of natural resources in Nevada. Currently, the maximum rate per $100 of assessed value that may be levied is $3.66. Property in Nevada is assessed at 35 percent of its taxable value.
In checking the overall tax cost under NV law the total comes out about the same as a similar property in CA (costing more), so the NV property tax is not a major issue.
So even up to 8% increase in value is no big deal due to the lower overall cost in the State.

If what you claim is true (and parts are incorrect) then prices for goods and services should be cheaper in Nevada but they aren't

[CA4Now]

Originally Posted by expatCA

Beside passing a tax on businesses just increases your costs as that tax increase will ultimately come out of your pocket and at a higher level due to the costs businesses will incur with the added cost and paperwork.

Glad you like increasing your costs.

This is supposed to close the loophole in Prop 13 that businesses have been using to get out of having their property re-assessed when there's a change in ownership.

Its focus is on businesses that, when purchasing a commercial property, carve up ownership shares to make sure that no one has a majority ownership stake, thus avoiding triggering a reassessment leading to higher property taxes.