[RCCCB]

Learned this morning that California has an 80% increase in property taxes all at once next year. Why you ask?

People there are legendarily dumb voters and if you say it is for the teachers (UNION), police (UNION) and children, people pretty much go ahhh and vote all kids of bond debt in.

In California no one is buying the new bonds and they can't make the payments on all these new school buildings nobody wants because of revenue decreases.
These bonds have an automatic switch built in and now automatically get to raise the hell out of property taxes.

It was 1.23% on every $100 and it is raising to as high as $2.26 on every $100 of value.

Just imagine how many home owners are going to loose their homes over this and how many renters will have to pay for their landlords new taxes.

Live and learn folks.

Learn from California's mistakes rather than going out and making the same ones all over again.

[olecapt]

Originally Posted by RCCCB

Learned this morning that California has an 80% increase in property taxes all at once next year. Why you ask?

People there are legendarily dumb voters and if you say it is for the teachers (UNION), police (UNION) and children, people pretty much go ahhh and vote all kids of bond debt in.

In California no one is buying the new bonds and they can't make the payments on all these new school buildings nobody wants because of revenue decreases.
These bonds have an automatic switch built in and now automatically get to raise the hell out of property taxes.

It was 1.23% on every $100 and it is raising to as high as $2.26 on every $100 of value.

Just imagine how many home owners are going to loose their homes over this and how many renters will have to pay for their landlords new taxes.

Live and learn folks.

Learn from California's mistakes rather than going out and making the same ones all over again.

YOu have a source for all this? It does not compute.

[jfkIII]

That's BOND...James Bond.

[RCCCB]

Originally Posted by olecapt

YOu have a source for all this? It does not compute.

LAUSD considers property tax increase | The Los Angeles Independent - Community Newspaper Serving Hollywood and West Hollywood | Local News

This isn't my source, but is something on the subject.

In CA people have their taxes based on 1+% of the purchase price.
As an example, my CA home is still worth 450k, I bought a while ago and am assessed at around 90k and pay $1200 a year in property taxes. If someone bought recently they would be paying about $5700 in property taxes for the same home.
Next year according to the discussion I heard between lawyers on KFI640, there is talk of an increase going from $1.23 per hundred to perhaps 2.26.
That would have me paying $2000+ and the person who bought recently would be paying close to $9000 in property taxes.

Almost no one is up to speed on this issue out here yet, but it is a great lesson about NEVER voting in bonds.
You are going to see the homeowners and commercial property people hit the fan on this.

Nevada, please learn from CA's mistakes and don't do the same thing.

We suffer 30 years of Democrat/UNION Legislative control in this state and it shows.

[RCCCB]

PS, that is only part of the issue above, lawyers were talking on the radio about this going across the whole property tax cost, not just a part of it.

[olecapt]

You are misunderstanding the problem. Prop 13 is alive and well. There is a let out in the bond laws for LAUSD bonds that might cost you $200 or so per annum. It is only a part of the tax bill that can increase. Other increases will require a 2/3 vote per prop 13.

The difference in Nevada is that there is no out for a bond issue and that the rate of taxation runs with the house...it does not reset upon sale. Note that the Nevada law however can be modified easily where it is tougher in CA.

Note that 13 causes some significant disruption of the market. Taxes can rise by factors of 4 or 5 on a sale and get to be a real factor. Not true in NV.