WA state ranks #1 worst in middle class taxes (Seattle, Everett: rent, assessor)

[SusVelo]

Originally Posted by rkcarguy

Incorrect. I'm not really surprised though that California is the best, taxes are high and as a monetary amount I bet people pay a lot, but income is higher and it's a lower total % of that income. The article linked compares the % of total taxes taken from middle class income levels and Washington is the worst, almost entirely due to property taxes I'd bet.

Your assertion in the first post is incorrect though, Washington did not rank number one at 11% for highest middle class tax load. I think you don’t understand what this study is taking.

ranked #1 for the highest middle class tax load, cumulatively taking ~11% from those in the $50-$70k per year range.

[pnwguy2]

This slide show is basically comparing middle class taxes to top one percent taxes. Note the highest rated states are the states with high taxes on the one percent. That metric is meaningless for most middle income people. Thus this ranking is biased and like a lot of these is just plain nonsense.

[rkcarguy]

Originally Posted by Hemlock140

There are still a lot of people benefiting from Proposition 13 in California and it makes a huge difference. When the property taxes are based on the sale price of $100,000 back in 1980, and the people stay there, the property tax is a fraction of the neighbor next door who just bought in 2019 for $1.1 million and pay tax based on that value.

With home prices rising so fast, even someone who bought 2-3 years ago is already getting a break from Prop 13 compared to other states where the tax is based on current value, rather than purchase price.

I'm well aware of that. Something similar would benefit Washingtonians. Most of the people I know that have been here since the 90's (those that didn't move away) are approaching paying as much for property taxes and new "fee's" as what their entire mortgages were when they first bought their homes. I don't think the state would even let a Prop 13 type bill fly though. Honestly I don't think they care, and would rather collect their perpetually increasing property taxes even it means the financially forced "gentrification" of middle class neighborhoods.

[Seacove]

Originally Posted by rkcarguy

I'm well aware of that. Something similar would benefit Washingtonians. Most of the people I know that have been here since the 90's (those that didn't move away) are approaching paying as much for property taxes and new "fee's" as what their entire mortgages were when they first bought their homes. I don't think the state would even let a Prop 13 type bill fly though. Honestly I don't think they care, and would rather collect their perpetually increasing property taxes even it means the financially forced "gentrification" of middle class neighborhoods.

The state needs money to function. California has income tax. Washington does not. Nevada doesn't either but they have gaming. Texas makes it up with higher property taxes.

[Botev1912]

Originally Posted by rkcarguy

This is going to be a big problem moving forward. More people that are working are doing it from home, not paying our 53.5 cents per gallon of gas tax, and yes sales tax collection is declining big time with restaurant capacity reduced and many more going/gone out of business or still closed.

I think it goes to show that one way or another, the state will get it's money and while you'll pay income tax in other states you'll pay high sales taxes, property taxes, gas taxes, and more in WA to make up for it.
Those who make a lot of money are still going to pay a lot of property taxes unless they've decided upon a very modest home compared to their income.

Most of the people working from home now used to take public transportation except the Microsoft people because they are located in a suburb.

[fishbrains]

Originally Posted by rkcarguy

I'm well aware of that. Something similar would benefit Washingtonians. Most of the people I know that have been here since the 90's (those that didn't move away) are approaching paying as much for property taxes and new "fee's" as what their entire mortgages were when they first bought their homes. I don't think the state would even let a Prop 13 type bill fly though. Honestly I don't think they care, and would rather collect their perpetually increasing property taxes even it means the financially forced "gentrification" of middle class neighborhoods.

Something similar would benefit some Washingtonians, but not others. It would also distort the real estate market and cause elected officials to look elsewhere for the money necessary to run the state.

A property tax freeze makes winners out of people who currently own and do not move for a long time. It also creates upward pressure on housing prices, because there is an incentive for people to stay where they are, reducing the numbers of homes for sale, increasing prices. Which of course increases property taxes on those specific homes.

It is all very complicated, and rarely does a tax proposal universally benefit everybody.

[Hemlock140]

Here's a good example. My parents bought our bigger house in 1960, in Lafayette, CA for $32,000.
Proposition 13 passed in 1978. After their divorce (I had moved out by then) in 1985 the house was sold for $140,000. The people who bought it then have remained, and for 2019 paid just $4,200, thanks to Prop 13 though now it's valued at $1.2 million. If they sell today the buyer's property tax would be $20,000!

[nowhereman427]

Originally Posted by Hemlock140

Here's a good example. My parents bought our bigger house in 1960, in Lafayette, CA for $32,000.
Proposition 13 passed in 1978. After their divorce (I had moved out by then) in 1985 the house was sold for $140,000. The people who bought it then have remained, and for 2019 paid just $4,200, thanks to Prop 13 though now it's valued at $1.2 million. If they sell today the buyer's property tax would be $20,000!

Yes I'm not far from Lafayette and homes there are over a million now.

[Ultrarunner]

My WA state property tax started at 6800 with the assessed value being what I paid.

Fast forward 14 years and the property tax is now 16k

I simply don't see this as sustainable...

I'm working in California and taking care of a parent with Alzheimer's and have my home rented for 2k a month... so 8 months WA rent just to cover the property tax is insane...

I love everything about WA except the Property Tax may do me in.

[nowhereman427]

Originally Posted by Ultrarunner

My WA state property tax started at 6800 with the assessed value being what I paid.

Fast forward 14 years and the property tax is now 16k

I simply don't see this as sustainable...

I'm working in California and taking care of a parent with Alzheimer's and have my home rented for 2k a month... so 8 months WA rent just to cover the property tax is insane...

I love everything about WA except the Property Tax may do me in.