Vacant and Vacancy Tax Spreading?

[ultrarunner]

It's beginning to look like the definition of owner is the person with all the responsibility and an ever diminishing basket if rights...

Individuals can readily move but the land is a sitting target that is fixed.

 

[Oaktree]

They are talking about it here. The local newspaper is constantly running articles about housing shortages, and short term rentals have made it onto the "evil" list. Tack on renters rights, rate control, and the recent optional rent payment during Covid and I don't know why anybody would want to be a landlord.

I wonder if this is one of the reasons this is happening...investors buying up houses at inflated prices to use as short term rental properties and basically pricing the locals out of ownership and/or driving up rents. I'm wondering if this is a back door way of dealing with those types of properties when loopholes in the laws prohibit towns from regulating them.

Don't understand why there's a problem with lots with no buildings though.

Was considering buying the house next door to me maybe 20 years ago before I moved to where I live now. Even though it was a foreclosure, the bank wanted way more for it than I thought it was worth so I passed. All in all glad I didn't get it...landlords seem to have so few rights today, and one bad tenant can wipe out any return you might have on a property.

 

[plowhog]

Individuals can readily move

The CA legislature is bantering about legislation to apply an exit tax with a 10-year tail after someone moves from CA. If passed the departing resident would be within CA's legal and tax reach for 10 years thereafter.

I don't know if it will pass, or if they can get away with applying it retroactively but the IRS has previously implemented tax law changes that are retroactive.

 

[ultrarunner]

In seasonal areas with second home use the short term rentals were at first encouraged adding millions to small city coffers plus the money tourists spent locally.

Somewhere along the line short term rentals became evil and with the bans came reduced money to the city and reduced money to the local economy.

Owners for the most part just sat tight and continue to enjoy the 8-12 week annual usage which infuriated some because the idea to ban short term was to crater the market…

 

[ultrarunner]

The CA legislature is bantering about legislation to apply an exit tax with a 10-year tail after someone moves from CA. If passed the departing resident would be within CA's legal and tax reach for 10 years thereafter.

I don't know if it will pass, or if they can get away with applying it retroactively but the IRS has previously implemented tax law changes that are retroactive.

California did have a source tax that was defeated after implementation.

California basically said if you earned it in California, included government pensions, California has the right to collect taxes on that money even if you became the resident of another state or country.

 

[ultrarunner]

Some rather well off after a lifetime of work amass rather large IRA sums and there are more of these leaving than other segments.

Say husband and wife have $1 million to $2 million sitting in their IRA and when they retire and start pulling that IRA money they are going to be paying 13% state income tax and they don’t want to do that.

 

[plowhog]

California did have a source tax that was defeated after implementation.

If that was the tax on retirements about 20 years ago, my parents were caught up in that. Yes that specific one was overturned.

This new thing bantered about is more expansive than just retirement. Whether it will be approved or hold up, I don't know.

I have been a Nevada resident for 10yrs +/-. Much as I try not to make any profit in CA, I still do receive some income here and there. And even though I am a NV resident I am required by CA law to file a CA return and pay CA income tax.

So I reside in a "no income tax State" but still pay income tax to CA.

 

[Jstpssng]

Some rather well off after a lifetime of work amass rather large IRA sums and there are more of these leaving than other segments.

Say husband and wife have $1 million to $2 million sitting in their IRA and when they retire and start pulling that IRA money they are going to be paying 13% state income tax and they don’t want to do that.

It seems like that would drive away people who are thinking about working there.

 

[zzvyb6]

When's the Vacant Bathroom Tax due ? Plus the Occupied Bathroom Tax. They get you coming or going...

 

[Molalla1]

That is an unbelievably nasty government trick.

For those who do not know, the Tahoe Regional Planning Agency has many hurdles in place for anyone who owns a lot in the Lake Tahoe area and wants to build a cabin. Takes years and lots of $$ just to .. maybe .. obtain a permit.

Then a different agency comes along, and slaps a $6k/yr tax for not having yet built a cabin on your lot. What idiot would now purchase any bare lot under those conditions? If this stands I could see the entire market for bare lots being destroyed.

Your damned if you do or damned if you don't . . .