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#111
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Stress Analysis in the Design of Bicycle Infrastructure
On 8/14/2017 8:09 PM, jbeattie wrote:
snip Well, that's just wrong -- particularly for you. AFAIK, property taxes in California may pay a tiny part of certain transportation projects -- like mass transit, highway lighting or pot-hole filling. They're not being used to build bike paths. Look at your tax bill and see if there are any bonds for bicycle infrastructure. And read this: http://www.calbike.org/funding_sources After Prop 13, there are few property tax dollars for transportation projects. Maybe SMS can weigh in on this. But I do know you pay practically nothing for property tax. I probably paid that much 20 years ago for a dinger house in a sketchy part of town. Oh no, don't get me started on Prop 13, the third rail of California politics! The issue with Prop 13 is that it was sold to voters as a way for homeowners to avoid being subjected to unrealistic property taxes due to paper increases in their home's assessed value. While I think maybe a fixed 2% limit was too low in some cases, too high in others, 2% per year is fair enough. For owner-occupied residential property. Period. But it was commercial real estate interests that were behind Prop 13. And owners of commercial property found ways to skirt Prop 13 even when selling commercial property, to prevent reassessment. My feeling on Prop 13 is that it should apply solely to owner-occupied residential property, limit 2. What we have in my city is a lot of rental property that is paying a pittance in property tax and parcel taxes, and it's chock full of families with multiple children in the public schools. They're paying insanely high rent, but that money isn't going to the schools, or to any public benefit. There is also the issue of homeowners with very low property tax allowing their adult children with their own children to take over their house, pay very low property taxes, yet send the kids to public school. Who subsidizes these kids? The recent homeowners paying astronomical property taxes. A house in my neighborhood, and it's not in the rich section of town, would have property taxes of about $25,000 per year if it were sold today. The People's Republic of Berkeley did something really smart, they base parcel taxes on square feet, not parcels. So a 100 unit apartment building doesn't get away with paying one parcel tax while a 100 unit condo complex pays 100 parcel taxes. That change to the the tax system passed 88% to 12%. I was talking to a CPA yesterday, and she was explaining what is really wrong with California when it comes to small businesses. It's how expensive it is to operate as an LLC, and the dual taxation you're subjected to. The purpose of an LLC is to put a wall between the businesses assets and the business owner's personal assets. But the cost of operating as an LLC is so high in California that she advises people to just operate as a sole proprietorship and to buy a very large umbrella insurance policy to protect their personal assets, because the umbrella policy will cost a lot less than paying taxes as an LLC. Jay would know more about this than I do! --- This email has been checked for viruses by Avast antivirus software. https://www.avast.com/antivirus |
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#112
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Stress Analysis in the Design of Bicycle Infrastructure
On 2017-08-18 18:52, sms wrote:
On 8/18/2017 12:52 PM, Joerg wrote: In essence it is. CalPERS got a blank check. Because of wanton doling out of increases they are now grossly underfunded. So they send the government a yearly bill. "This is how many billions we need this year and this is, therefore, what you owe us". It's not the "wanton doling out of increases," the increases are determined by formulas put into place when the employee is hired, no one increases it "wantonly." It clearly was. Unions "convinced" the governor back then (Gray Davis) that a massive increase would easily be covered but the investments. This was when the stock market was on a roll. Then ... it went bust, as it cyclically tends to do. And now we have a massive pension problem. Predictably so. ... Many cities have taken steps to reduce the pension costs for the long term, but in the short term there will be a lot of retirees collecting pensions for decades. The real cause of the CalPERS under-funding is the reduction in the predicted rate of return on investments. Every time CalPERS reduces the predicted return, the local and state governments have to ante up the difference. As an elected official, I now get to worry about this! Then you should remember that episode. http://www.latimes.com/projects/la-m...is-davis-deal/ A reduction of 0.5% in the predicted rate of return may not sound like much, but even for a moderately sized city it can amount to a lot of money in additional funding. See https://www.calpers.ca.gov/page/newsroom/calpers-news/2016/calpers-lower-discount-rate. This is exactly what I told everyone back then would happen and all the leftists said I was wrong or had their heads in the sand. And now it is happening. http://www.latimes.com/projects/la-le-me-richmond-pensions/. The classic crowding out phenomenon. Also very predictable. This is why we have horrid streets and Nevada has nice smooth ones. -- Regards, Joerg http://www.analogconsultants.com/ |
#113
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Stress Analysis in the Design of Bicycle Infrastructure
On 2017-08-18 19:17, sms wrote:
[...] The People's Republic of Berkeley did something really smart, they base parcel taxes on square feet, not parcels. So a 100 unit apartment building doesn't get away with paying one parcel tax while a 100 unit condo complex pays 100 parcel taxes. That change to the the tax system passed 88% to 12%. So how much did that increase the affordability of apartments? I was talking to a CPA yesterday, and she was explaining what is really wrong with California when it comes to small businesses. It's how expensive it is to operate as an LLC, and the dual taxation you're subjected to. The purpose of an LLC is to put a wall between the businesses assets and the business owner's personal assets. But the cost of operating as an LLC is so high in California that she advises people to just operate as a sole proprietorship and to buy a very large umbrella insurance policy to protect their personal assets, because the umbrella policy will cost a lot less than paying taxes as an LLC. Jay would know more about this than I do! That is exactly what people here are doing :-) Others go a step further, packing it up and moving the business out of state. Or they lose out against out of state businesses in the marketplace. This also evidences itself in where my clients are. A decade ago most were in California. Now most are in the Houston area. -- Regards, Joerg http://www.analogconsultants.com/ |
#114
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Stress Analysis in the Design of Bicycle Infrastructure
On 8/19/2017 7:37 AM, Joerg wrote:
On 2017-08-18 19:17, sms wrote: [...] The People's Republic of Berkeley did something really smart, they base parcel taxes on square feet, not parcels. So a 100 unit apartment building doesn't get away with paying one parcel tax while a 100 unit condo complex pays 100 parcel taxes. That change to the the tax system passed 88% to 12%. So how much did that increase the affordability of apartments? It neither increased nor decreased the affordability, since rental costs are based on what the market will bear, not the costs to the property owner. Others go a step further, packing it up and moving the business out of state. Perhaps, but more businesses and people continue to come to California that leave. Or they lose out against out of state businesses in the marketplace. This also evidences itself in where my clients are. A decade ago most were in California. Now most are in the Houston area. I don't think that you really want to live in Houston no matter how cheap the housing is. --- This email has been checked for viruses by Avast antivirus software. https://www.avast.com/antivirus |
#115
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Stress Analysis in the Design of Bicycle Infrastructure
On 2017-08-19 20:47, sms wrote:
On 8/19/2017 7:37 AM, Joerg wrote: On 2017-08-18 19:17, sms wrote: [...] The People's Republic of Berkeley did something really smart, they base parcel taxes on square feet, not parcels. So a 100 unit apartment building doesn't get away with paying one parcel tax while a 100 unit condo complex pays 100 parcel taxes. That change to the the tax system passed 88% to 12%. So how much did that increase the affordability of apartments? It neither increased nor decreased the affordability, since rental costs are based on what the market will bear, not the costs to the property owner. Exactly, and when a parcel tax or whatever other tax is increased it is simply passed on to the renters - rents go up. Others go a step further, packing it up and moving the business out of state. Perhaps, but more businesses and people continue to come to California that leave. I haven't seen evidence of that and someone from the tax board said otherwise. Or they lose out against out of state businesses in the marketplace. This also evidences itself in where my clients are. A decade ago most were in California. Now most are in the Houston area. I don't think that you really want to live in Houston no matter how cheap the housing is. That is undoubtedly correct. However, if I was younger and not close to retirement I'd be in Southern Utah or Northern Arizona now. Might still move there some day in case the politicians go completely coocoo in California. -- Regards, Joerg http://www.analogconsultants.com/ |
#116
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Stress Analysis in the Design of Bicycle Infrastructure
On Saturday, August 19, 2017 at 7:36:55 AM UTC-7, Joerg wrote:
On 2017-08-18 19:17, sms wrote: [...] The People's Republic of Berkeley did something really smart, they base parcel taxes on square feet, not parcels. So a 100 unit apartment building doesn't get away with paying one parcel tax while a 100 unit condo complex pays 100 parcel taxes. That change to the the tax system passed 88% to 12%. So how much did that increase the affordability of apartments? I was talking to a CPA yesterday, and she was explaining what is really wrong with California when it comes to small businesses. It's how expensive it is to operate as an LLC, and the dual taxation you're subjected to. The purpose of an LLC is to put a wall between the businesses assets and the business owner's personal assets. But the cost of operating as an LLC is so high in California that she advises people to just operate as a sole proprietorship and to buy a very large umbrella insurance policy to protect their personal assets, because the umbrella policy will cost a lot less than paying taxes as an LLC. Jay would know more about this than I do! That is exactly what people here are doing :-) Others go a step further, packing it up and moving the business out of state. Or they lose out against out of state businesses in the marketplace. This also evidences itself in where my clients are. A decade ago most were in California. Now most are in the Houston area. Wouldn't you think that taxation of rental properties would be better tied to rents rather than property values? When I've written the local paper that the business atmosphere is driving business out of California the responses are that business growth in California has never been higher. Yet even Elon Musk built his battery plant in Nevada. |
#117
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Stress Analysis in the Design of Bicycle Infrastructure
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#118
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Stress Analysis in the Design of Bicycle Infrastructure
On Sunday, August 20, 2017 at 8:14:53 AM UTC-7, wrote:
On Saturday, August 19, 2017 at 7:36:55 AM UTC-7, Joerg wrote: On 2017-08-18 19:17, sms wrote: [...] The People's Republic of Berkeley did something really smart, they base parcel taxes on square feet, not parcels. So a 100 unit apartment building doesn't get away with paying one parcel tax while a 100 unit condo complex pays 100 parcel taxes. That change to the the tax system passed 88% to 12%. So how much did that increase the affordability of apartments? I was talking to a CPA yesterday, and she was explaining what is really wrong with California when it comes to small businesses. It's how expensive it is to operate as an LLC, and the dual taxation you're subjected to. The purpose of an LLC is to put a wall between the businesses assets and the business owner's personal assets. But the cost of operating as an LLC is so high in California that she advises people to just operate as a sole proprietorship and to buy a very large umbrella insurance policy to protect their personal assets, because the umbrella policy will cost a lot less than paying taxes as an LLC. Jay would know more about this than I do! That is exactly what people here are doing :-) Others go a step further, packing it up and moving the business out of state. Or they lose out against out of state businesses in the marketplace. This also evidences itself in where my clients are. A decade ago most were in California. Now most are in the Houston area. Wouldn't you think that taxation of rental properties would be better tied to rents rather than property values? When I've written the local paper that the business atmosphere is driving business out of California the responses are that business growth in California has never been higher. Yet even Elon Musk built his battery plant in Nevada. Property taxes are tied to rents in a way because property values for multi-family are based on return. The value is rent-driven. A beautiful building in a depressed rental market is worth less than a falling-down slum in the Bay Area. Building a battery plant in Nevada makes sense. What's a little heavy metal in the groundwater in a place where they were lighting off nukes? Actually, apart from the regulatory landscape, its easier preventing pollution in a desert because there are not the same groundwater concerns, and dirt is cheap. California has made a decision not to attract dirty businesses. Some of these businesses, like coal export (a big issue around here) also involve unpredictable markets and employers who come and go and leave a big mess. -- Jay Beattie. |
#119
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Stress Analysis in the Design of Bicycle Infrastructure
On 8/20/2017 7:26 AM, Joerg wrote:
On 2017-08-19 20:47, sms wrote: On 8/19/2017 7:37 AM, Joerg wrote: On 2017-08-18 19:17, sms wrote: [...] The People's Republic of Berkeley did something really smart, they base parcel taxes on square feet, not parcels. So a 100 unit apartment building doesn't get away with paying one parcel tax while a 100 unit condo complex pays 100 parcel taxes. That change to the the tax system passed 88% to 12%. So how much did that increase the affordability of apartments? It neither increased nor decreased the affordability, since rental costs are based on what the market will bear, not the costs to the property owner. Exactly, and when a parcel tax or whatever other tax is increased it is simply passed on to the renters - rents go up. No, that's not the way it works. It's what the market will bear, not what it costs the property owner. A property owner that paid $1 million for an apartment building charges the same rent as an owner of an identical building that paid $5 million. One just makes more money. But it's immaterial. Apartment building owners and residents should not be subsidized by owners of single family homes or condos, which is the way it is now. Apartment building owners want it both ways--they don't want to pay their fair share of property taxes or parcel taxes, and they also don't want rent control. In other words, they're fine with lobbying the government to subsidize their businesses, but not with the government limiting how much they can charge for their product. --- This email has been checked for viruses by Avast antivirus software. https://www.avast.com/antivirus |
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