Vacant and Vacancy Tax Spreading?

[EddieWalker]

I remember that about Nevada back in the 90's. A lot of people would retire in California, then move to Nevada, but still have to pay California taxes on their retirement because California claimed that the money was earned in California. I was too young to pay a lot of attention to it back then, but I do remember hearing about it from people that where moving out of state and being mad about it.

 

[ultrarunner]

You have we want it…

As Ponytug mentioned vacant property is often owned by entities without a vote in the district where the property is located.

City Council said it’s to spur development either by owner or by cratering value to make it attractive enough for another to develop.

Of course this favors those with deep pockets…

 

[David in KY]

People can't believe this crap is EVEN legal. It reminds me of this famous quote:

"The limits of tyrants are prescribed by the endurance of those whom they oppress." -Frederick Douglass

Americans, and Californians in particular, have tremendous endurance !!!

 

[ultrarunner]

I remember that about Nevada back in the 90's. A lot of people would retire in California, then move to Nevada, but still have to pay California taxes on their retirement because California claimed that the money was earned in California. I was too young to pay a lot of attention to it back then, but I do remember hearing about it from people that where moving out of state and being mad about it.

If he retired from California Government service very hard because with a city, county or state pension a portion was simply withheld so you would have to file to get it back or leave it.

State is the most aggressive with those leaving now if they still have a “Presence” in California after leaving.

An old car friend moved to Oregon and two of his project cars California Titled Non-Op.

California claimed since he did not transfer title to his new state that he had not severed ties with California.

Kind of hard to title a basket case but just shows the reality.

Some become so bitter they refuse to set foot in California again.

 

[plowhog]

It hit retired from California Government service very hard

Some of the goofy regulations apply to the residents employed by the State of CA.

A family member of mine worked for a State of CA agency. That agency was "represented" by a union. Almost all workers belonged to the union because you were automatically signed up as part of being hired. But you did have the choice to opt out.

She chose to opt out. And was promptly told that even as a non-member she would still pay union dues at 50% of full member rate. For no service or representation in return.

She asked: "what if I refuse to pay the bill?" The answer: "Governor Gray Davis passed a bill empowering the State comptroller to auto-deduct union dues from your check before it is issued to you. Whether you belong to the union or not."

This is the same official that received a $3M campaign contribution shortly before the new law was enacted.

Some things never change ....

 

[ultrarunner]

He was recalled…

 

[Eagle1]

He was recalled…

But the corrupt laws remained in place, right?

 

[Jstpssng]

But the corrupt laws remained in place, right?

It was overruled in this state.

 

[Otto Syracuse]

I own a cottage in Ontario and have had to file the UHT for 2 years now. My wife is also listed on the property deed, and she needs to file a separate (and duplicate) return. Fortunately, for seasonal cottage owners there are currently some exemptions that eliminate the 1% fee. If not for those exemptions, we would need to stay 28 nights a year, either me or her, or both of us combined (counts as 1 night). Loaning the cottage out to any of my friends or family does not count - it has to be property owner.
The first year we had to file the return, I was stumped on how I would remember the number of nights we were there - then I looked at my Google Maps and realized it tracked my every move, even our stops along the way for gas, groceries, etc. All on my Google Maps. So even if I lied and said I did stay there 28 nights, they could verify when and where I was at all times. Even my vehicle has a GPS tracker with this information, not just my phone.

 

[hayden]

Nobody has bothered to try to understand what these taxes are about. It's about people with tons of $$ coming into places and buying up everything and anything. It drives prices through the roof, depletes any inventory of properties, and makes living there unaffordable for long term residents and people with more normal financial means.

I first experienced this in Vancouver where foreign nationals were buyign anything and everything, at any price. If a house listed for $500k, people would show up with literally a suitcases of cash and bid up the price. Then they would leave and the house/apt/condo would sit empty. All they wanted was a place to stash money outside their home country.

That's what this is all about. Outside rich people driving locals out of the market, and making it unaffordable for them to live in their home town. The taxes are an attempt to protect locals, not punish them.

Now I'm not defending the specific solution of taxing unoccupied property. It clearly has unintended side effects, but most everything does. And if someone is just looking to hide away a bunch of money in a realestate investment, $6k per year extra isn't going to be a deterrent.

Perhaps a more constructive discussion would around policies that WOULD help the issue. Any ideas?