Real estate General topic

[paulsharvey]

In Florida, if you didnt pay sales tax on a vehicle on purchase, you pay sales tax ad part of the registration/title transfer. Thats why the title transfer lists sale price. The DMV isnt completely stupid though, they know you didnt buy that 1999 F350 for $1000. What they dont know is if you paid $5,000 or $15,000. So, often the seller will leave that line blank, and the buyer can put a lower number, but realistic, and pay 7% of $5000, vs 7% of $15,000.

 

[paulsharvey]

On real estate, is it just me, or are things kinda still "floating", with no clear direction. I can't tell if we are going up in value, down in value, just seems to be floating with a couple % points for last 2 years?

 

[riptides]

In Florida, if you didnt pay sales tax on a vehicle on purchase, you pay sales tax ad part of the registration/title transfer. Thats why the title transfer lists sale price. The DMV isnt completely stupid though, they know you didnt buy that 1999 F350 for $1000. What they dont know is if you paid $5,000 or $15,000. So, often the seller will leave that line blank, and the buyer can put a lower number, but realistic, and pay 7% of $5000, vs 7% of $15,000.

I think my commonwealth, Virginia, backtracks to market value, if lower than average is seen on the transfer.

 

[paulsharvey]

I think my commonwealth, Virginia, backtracks to market value, if lower than average is seen on the transfer.

But end result is the same, the Buyer typically pays the sales tax, not the seller collects and sends it in, unless they are a dealer

 

[LouNY]

Most places do use a book value if the listed value is very low. I bought my last pickup from a private individual so when I registered it they collected the sales tax when I paid for the title fee and registration.
That is one factor that makes buying dealers with a trade in the sales tax is reduced by the value of the trade. With a 7% sales tax that adds up in a hurry.

 

[Sigarms]

There IS a significant game played by owners of high value luxury vehicles and motorhomes to register them in Montana, bypassing sales taxes and smog requirements. Let's just say I KNOW this to be true.

The other week at a church related function, we had a comedian come in at night for something like a AA meeting (more Christian based vs a friend of Bill's).

Motorhome was in the church parking lot with Montana plates. Thought I could talk to the guy about that state as I use to go there ofter, turns out he is from Alabama and has never had moved.

That explains the Montana plates because I didn't even want to ask

 

[ultrarunner]

I had never heard of him until the tax issue.

There IS a significant game played by owners of high value luxury vehicles and motorhomes to register them in Montana, bypassing sales taxes and smog requirements. Let's just say I KNOW this to be true.

But, if you play that game, you usually have to take possession of the vehicle out of state, and keep it out of state for a specified time. Anywhere from 90 days to a year is typical. I suspect, from getting the vibe from this dude, he didn't feel those rules applied to him ....

Not many feel sorry for someone saving the sales tax on a Ferrari. But many were upset about the claim there was never any effort or notice to collect the tax. He claims his first knowledge was when the Sheriff shows up and arrested him.

Regardless of how you feel about a Youtube loudmouth with a Ferrari, that does seem to be the wrong approach.

One of my California teachers retired and bought a new car in Europe and traveled for 6 months… had the car shipped to the East Coast and drove it another 6 months not including shipping time and by the time the car entered CA no tax was due because he used and operated the car with documentation for more than a year prior to first entering California

I know some diesel motorhome coach owners that moved domicile location to Montana and they no longer need California smog as long as the motor home is not in California 6 months and a day…

 

[lman]

Over 5,000,000 views in 4 days. He will be able to cover the taxes. He's actually originally from my county. A little too crazy for this area though.

 

[paulsharvey]

Governor is proposing stopping property tax on homesteads. (Primary residence, just 1, non commercial, ect), which made me do some searching. Apparently thats only about 33% of property tax collected. With that, each county would individually either opt in or opt out (unclear at this point).

I am in favor of it, but I also realize counties/state/school board so need tax revenue. No idea if it will pass or not, and also no idea if my county would opt in or out.

From a local politics level, its much easier for a county, politically to not opt out, then it is to actively opt in...

 

[EscapedSuburbia]

Does your governor have a proposal on how to pay for schools and local infrastructure? There's no free lunch. Someone has to make up that lost 33% of revenue.

 

[paulsharvey]

Does your governor have a proposal on how to pay for schools and local infrastructure? There's no free lunch. Someone has to make up that lost 33% of revenue.

Not that ive heard. This would be 33% reduction, in 18% of the state tax stream, or a total of 6%. Not a lions share, but significant. I haven't heard a proposal on what they would tax to make up for it

 

[LouNY]

In my area we have separate tax bills and due dates for property taxes, County, Town and possibly Village.
Then in the fall there is a completely separate School Tax, for many homes and farms the school tax is much more then the property tax.
My County/Town tax is close to $2000, my School tax is just shy of $4000.

 

[WinterDeere]

Not that ive heard. This would be 33% reduction, in 18% of the state tax stream, or a total of 6%. Not a lions share, but significant. I haven't heard a proposal on what they would tax to make up for it

You'd think that those being potentially exempted in Florida, for their primary residence, are almost exactly the group making most use of the school system.

In my area we have separate tax bills and due dates for property taxes, County, Town and possibly Village.
Then in the fall there is a completely separate School Tax, for many homes and farms the school tax is much more then the property tax.
My County/Town tax is close to $2000, my School tax is just shy of $4000.

Same here. Fall tax bill is about 20%, basically just per capita and street lights (if you have them), whereas spring tax bill is the big one including school taxes.

 

[paulsharvey]

We get 1 tax bill, which includes County and School board, (and city if you live in city limits), all based on value, and the smaller per unit assessments for trash, water management, ect.

Im "assuming" the general plan is drop taxes on your homestead, and raise taxes on non-homestead properties, investment/rental/commercial?

 

[paulsharvey]

Did some brief reading; suggesting that there are 3 basic approaches;
A: increase sales tax from 6 to 10% (base state level, most counties have an additional 1% on top), and the state transfer that increase to the counties (BoCC and School board).
B: increase non-homestead property tax along with general fees increase to replace the revenue
C: only remove the County Commission half; continue School board half of the tax on homesteads, and make up for the BoCC (Board of County Commission) portion via A and/or B.

 

[two_bit_score]

Does your governor have a proposal on how to pay for schools and local infrastructure? There's no free lunch. Someone has to make up that lost 33% of revenue.

They can do exactly what taxpayers have to do when expenses go up and revenues don't. That is to CUT spending until you balance the budget. You drive that car a little longer, you stop eating out, you drop all unnecessary expense and 'tighten your belt'. There is so much waste, fraud and abuse in government spending from the national level down to the local level. "Make it up" by cutting whatever it takes out of the budget to get it balanced.

We have far too many leeches and too few taxpayers and some of us are fed up with being drained by the leeches.

 

[EscapedSuburbia]

They can do exactly what taxpayers have to do when expenses go up and revenues don't. That is to CUT spending until you balance the budget. You drive that car a little longer, you stop eating out, you drop all unnecessary expense and 'tighten your belt'. There is so much waste, fraud and abuse in government spending from the national level down to the local level. "Make it up" by cutting whatever it takes out of the budget to get it balanced.

We have far too many leeches and too few taxpayers and some of us are fed up with being drained by the leeches.

That's fine and I agree, but the cuts in spending need to be paired with the cuts in taxes. Unless your state has a constitutional mandate for a balanced budget they'll just run a deficit.

 

[paulsharvey]

That's fine and I agree, but the cuts in spending need to be paired with the cuts in taxes. Unless your state has a constitutional mandate for a balanced budget they'll just run a deficit.

Florida has to run a balanced budget. (part removed to stay away from politics...)

Also, I try to be honest... I vote with my wallet, meaning, something can seem "right" but if it costs me instead of someone else, im not voting for it. They hold vote on exempting veterans, teachers, and first responders; Nope, I vote against that. So, I understand that commercial owners, investors, folks with a few rental properties, and people that plan to rent long term, probably will vote against this; because I would in their shoes.

 

[WinterDeere]

They hold vote on exempting veterans, teachers, and first responders...

An aside from your point, but it always makes me shake my head, when I see teachers lumped in with groups where they just don't belong... as if teaching 3rd graders how to multiply numbers or diagram a sentence is akin to a deployment in Afghanistan, or pulling people and bodies from raging rivers and burning buildings.

 

[kenmbz]

My town just paid off it's last big debt and we don't have an increase this year for the town portion.
School taxes however will always go up.
And we have some weird occupation tax, which I think is just in place to pay for the tax collectors office to exist, that's about $200 each for wife and I per year.