One of the videos I watched on the treadmill this morning:
As a California resident and business owner, the answer is of course. People talk about the high rent and housing costs, but those are high because the area is still in demand and there are too many people as it is, so I welcome even more people leaving.
The film also misrepresented some things. Oracle is moving their headquarters to Texas, but they are not leaving. Their workforce in California is not expected to decrease. Tesla has for a long time done business in other states (they built a huge battery factory in Nevada), but they are not shutting down their California facilities.
That is not to say there are some major issues with doing business in California. Taxes are indeed high, and even more of an issue is regulations. The video talked about the Democrats having a super majority in the legislature, making raising taxes too easy, but what it doesn't say is that before the Democrats had the supermajority the state simply shut down every year for weeks or more while the Republican minority held the state hostage. That was actually the most difficult time we ever had to do business in the state.
So yeah, California has issues, but so does every other state. California still gives more to the federal coffers than any other state and is essentially subsidizing the budgets of every red state that likes to make fun of us.
so I welcome even more people leaving
The point in the video seemed to be the wrong people are leaving...the wealthy job creators leaving behind a higher concentration of those who don't contribute tax revenue and are dependent on social services.
The film also misrepresented some things. Oracle is moving their headquarters to Texas, but they are not leaving. Their workforce in California is not expected to decrease. Tesla has for a long time done business in other states (they built a huge battery factory in Nevada), but they are not shutting down their California facilities.
Fair points.
So yeah, California has issues, but so does every other state. California still gives more to the federal coffers than any other state and is essentially subsidizing the budgets of every red state that likes to make fun of us.
Agree, every state has some problems.
I wondered out loud if it is sustainable? Opinions on both sides can be found.
Personally I think California may be the most wonderful and beautiful state in the country. But living there comes with a cost. No doubt enough of the wealthy tax payers and companies will stay there for now, but with tech companies moving to Colorado and Texas...it does seem that the world's 5th largest economy could drop down a bit and where does their new tax revenue come from?
I'm not a source of information on this topic, just hoped to create some points of conversation.
Success does breed its own problems, and the biggest is high cost of housing. Part of the answer is in the video, and that is immigrants with money are moving to California. They tend to start businesses. If you are from another state, well, I wouldn't suggest a move here. The cost of living is just too high compared to what you are used to. Today, I think California is best suited to people who already live here, or foreigners who already know they are in for a big change. Now, if you move away from the coast into the Central Valley or more rural areas, the cost of living isn't so high. However, in those cases, maybe trading in your life in Stockton or Modesto for Oklahoma or Texas might not seem so much like a downgrade.
New York has similar issues....And also pays billions more per year into the federal gov’t than it receives back. Thus also subsidizing many poorer states.
I’m sure the poorer states appreciate it - mayb done by formula where the feds apportion out states’ tax rates based on population ratios/median incomes etc
& what is causing Californians to flee in record #s - also what was mentioned in the other California thread - natural disasters - mud slides, mountainsides buckling & giving way, earth tremors, of course wildfires etc
I’m sure the poorer states appreciate it - mayb done by formula where the feds apportion out states’ tax rates based on population ratios/median incomes etc
State taxes are determined by each state. Federal tax dollars are typically apportioned out by who asks for it.
I don't think many of the residents of these states are even aware of the redistribution of Federal tax dollars to their state from over the border. Many residents and politicians of less populated states with lower taxes ignorantly pride themselves on not being either CA or NY. A dairy farmer couldn't sell a gallon of milk in Nebraska it if wasn't Federally subsidized.
I’m sure the poorer states appreciate it - mayb done by formula where the feds apportion out states’ tax rates based on population ratios/median incomes etc
State taxes are determined by each state. Federal tax dollars are typically apportioned out by who asks for it.
I don't think many of the residents of these states are even aware of the redistribution of Federal tax dollars to their state from over the border. Many residents and politicians of less populated states with lower taxes ignorantly pride themselves on not being either CA or NY. A dairy farmer couldn't sell a gallon of milk in Nebraska it if wasn't Federally subsidized.
Dairy farming in Nebraska? Pick something and someplace where the commodity is relevant.
"Is that a real poncho or is that a Sears poncho?"
Dairy farming in Nebraska? Pick something and someplace where the commodity is relevant.
Actually I wrote "sell a gallon of milk in Nebraska". Didn't say where the farmer was. Milk consumption is decreasing, but pretty sure people eat cheese every where.
The point being that gallon of milk would be much more expensive to a mother of four in Omaha if it weren't subsidized. Behind CA and WI, Idaho is the 3rd largest dairy producing state yet one of the lowest taxed and low income. Dairy in Idaho would go under if it wasn't for Federal subsidy.
Don’t forget ice cream! By the way nearly every agricultural product is subsidized by the federal gov’t as it’s an incredibly volatile business for a whole host of reasons. Even more so these days given climate change, Trump era trade wars based on stupidity instead of strategy, etc....
In fact, without subsidies, ie. “socialism,” this nation would have starved centuries ago as there wouldn’t be an ag business still in operation. But don’t repeat this as socialism is evil and the die hard capitalists will rip me a new one for even typing the word.. 🙄
Well I guess I would be evidence of the truth of this video. Not that little ol' me leaving is going to be much of an effect on the California economy. I'm 66 and I just retired six weeks ago. Been in California my entire life. But I'll be gone to my single family home in El Paso within a year. I bought that place in 2006 for $120,000. Nothing special, very average 1,340 sq ft home but it's 4 bedroom 2 bath. I'm single. Even if I get married, what else do I need? And now I owe $16,000 on it so before long (maybe two years) I'll be mortgage free. Paid off house, no homeowner's dues, no space rent. For all that I can deal with the high Texas property taxes. How many in California can say all that? What could you get in California for $120,000? Maybe you'd get your bathroom remodeled in a mansion for $120,000.
Good luck out in the west Texas town of El Paso robslob, a big move indeed for a lifelong Californian & who knows, mayb you’ll meet a beautiful Mexican girl🎵🎶
sounds like you’ve planned for it & it’ll work out that way, just make sure the AC’s always in good working order😁
@stephen: Yeah about the first thing people think of when you say Texas is the heat. But even then, and I've followed this on-line for 15 years now, the hottest El Paso ever gets in the summer is 106, very rarely a degree or two higher. Compare that with a place like Phoenix which can get to 122 or even higher...........
And after the severe cold in central Texas recently along with power outages and people freezing to death I feel like somewhat of a genius for buying in El Paso. I didn't know this until recently, but El Paso is on a separate power grid away from cities like Austin and Houston. El Paso shares their power grid with lower New Mexico and lower Arizona and they had very minimal outages during the recent freeze. The freeze largely bypassed El Paso anyway, El Paso is 576 miles northwest of Austin. And oh by the way: Those famous Texas hurricanes? That's in the lower half of the state. They never hit El Paso.
Also: A lot of people think that because El Paso is a border town there will be a lot of crime. Just not true. There certainly must be a criminal element in El Paso, SOMEONE is receiving drugs from across the border. But despite that, El Paso has consistently been rated one of the safest mid-sized cities in the U.S.
I have a good friend that had a modest house in the SF Bay Area who sold it about 10 years ago. He took that money and bought 2 houses in Texas. One over twice the size of his CA house to live in, and a second smaller house to rent for income. He planned all this so he could retire early. It was a smart move for him. However, that move didn't really affect California's economy because a buyer with just as much money, if not more, took his place in his old house. So yes, there may be some Californian moving away due to the cost of living, but for now at least they are being replaced, which means a neutral affect on the overall economy. In fact, due to the old Proposition 13, property taxes on properties that haven't been sold for a long time limit government revenues. When a house is sold it gets reassessed to its actual higher value, increasing revenue for the state and counties.
California to me is a lifestyle state. It has a lot to offer, but you give up some in order to get that. Some of that lifestyle is available in other places with trade offs, so people do what they do in decision making if they can choose where to live or locate. Said before, I think it is a great state, over regulated for my ideal personality, but it still has a lot going for it.
Excellent point @2112 I was not aware how they reassess the property value on a sale but do not do it for homes off market? So yeah, sell that house and move, the new buyer is going to pay more and the local levies and county gets more money so not all bad as long as there are buyers.
Property taxes is always a hot button issue for people. Nobody wants their valuation high until it's time to sell and they can ask what their home is worth (or more). I knew a guy who would bitch and moan and actually go to protest in person and complain why his assessed value was too high. Then he kind of bragged about how much he sold his house for just a couple years after. It's like, dude, if that is what it is worth, then you should be taxed off that amount per the levy formula on the books. Side rant...people bother me.
@ robslob moved, but I don't see him supporting UTEP football yet...still backing those San Jose Spartans! El Paso does have the Sun Bowl! Go Miners!
California property taxes are set at 1% of the purchase price. They then can increase at no more than 2% per year. You can ask for your property value to be reassessed downward (this happened during the 2008 financial crisis for some people), but it can't go up more than 2% per year (although they will adjust property values for improvements, but they will only take into account the value of the improvement itself and not reassess the property completely. When a property is sold, the value is reset to 1% of the sale price. California may have some of the highest taxes in the country, but at least homeowners shouldn't be forced out of their home because they can't afford their property taxes due to skyrocketing home prices beyond their control.
I've heard of some of these states having caps on their property tax valuations.
In Ohio we are taxed on 35% of our appraised value, which their appraised value doesn't always match market value, especially in a hot market like this.
So I have compared property taxes to other perceived higher tax states, but when those states have laws that limit their property tax valuations, actually Ohio property taxes are not very competitive and actually pretty high. But then again, our gas and diesel is a dollar a gallon cheaper as is electricity, natural gas and such.
@nebish: PLANNING on moving within the next year, still in Campbell (on the border of San Jose) for now. Hard to let go having been in the Bay for 36 years. Good friends, good music, good weather, and yeah Spartan Stadium (San Jose State) is only 5 miles away. Going to try and delay it until next spring. Having a BIG going away party on September 18 at my place featuring the Gary Smith Blues Band. Gary just happens to be my favorite harmonica player in the world.........authentic Chicago sh*t. I am thinking the way vaccinations are rolling I will be able to pull this party off in six months (fingers crossed). Also, with QB Nick Starkel coming back for a final year, I want to catch the defending Mountain West champs SJSU a couple of times with my buddies. Could not go last season of course due to COVID.
What does vehicle registration cost in California?
Ohio, we pay all of our sales tax in one shot when titling, so there is no ongoing tax as part of the yearly registration. I know some states have that, wondering if CA does.
Most vehicles cost $56 a year, 1/4 ton trucks $71, 3/4 ton trucks $77
We can do historical plates for vehicles 25+ years older that are good until 2050 for like under $30. Pretty good, other states I know you can get collector plates but are only good for several years.
I honestly can't tell you everything in our registration fees without the paperwork in front of me. We pay a flat registration fee of $46, plus a CHP fee of $23, plus a Vecicle License Fee of 0.65% of the value of the vehicle. The VLF is considered a tax. On top of that, different counties add additional fees (for example counties with congested freeways add fees to cover road service during commute hours, subsidize ferries and public transportation, etc). Lastly, you have to get your vehicle smog tested every other year for newer vehicles (yearly for older ones except historic vehicles). On off years that you don't have to get your vehicle smog tested, you pay a smog abatement fee of around $23. All in all, the fees are pretty high for newer cars, but as the car ages your VLF goes down significantly.
@2112 That was helpful thank you. I have a lot of older vehicles. We have two 2006-newer vehicles and oh I don't know maybe a dozen older ones. I drive some sometimes, sometimes they are projects. Would definitely be expensive to own several "sometimes drivable vehicles" in CA. But man, when I look at bringatrailer.com or eBay or marketplace or craigslist or whatever for sale sale site....CA vintage vehicles are drool worthy
@nebish: California vehicle registration is expensive, as it always has been. Both of my cars are due every year in January. This year my 2001 Chevy Silverado was $245, my 2010 Chevy HHR was $142.
To clarify with the California residents and vehicles...you pay sales tax when purchasing or first titling the vehicle correct? Like buy a new or used car and the sales tax gets calculated and added to the purchase price you pay or borrow on - right? And then, you also pay an ongoing tax (VLF) with the annual registration that decreases with age?
That sounds like a double tax, unless there is no sales tax upon initial purchase.
Yes, you pay sales tax and a title fee when you buy a vehicle. The transfer fee is reasonable for used vehicles, but you do pay tax. Lots of people cheat and ask the seller to underreport the sales price.
I just found my registration for my 2006 4Runner from last year. I paid $155 total, and the VLF was only $29 of it. If you don't operate the vehicle on public roads, you can pay $22.
