The greatest country in the world, the United States of America, was created in part in 1773 when a group of people who were getting sick and tired of being over-taxed protested. That protest was called the Boston Tea party. Over the last 100 or so years, our elected leaders keep taxing and taxing and taxing us, instead of being responsible with the tax dollars that they are already receiving, everything from income, property taxes, sales tax, hotel tax and the list goes on.
Now our city leaders are thinking of doubling our property transfer tax bill.
A lot of readers have asked me lately about this new proposal to increase the property transfer tax in the City of Los Angeles. Today, in Los Angeles, we homeowners have the “privilege” when we sell our homes to pay a transfer tax to the City of $4.50 on every $1,000.
Now, what are our elected officials thinking of doing next? Doubling what we are paying right now.
Yes, that is right; they are going to try to take the already super high tax of $4.50 per $1,000 and make it $9.00 per $1,000.
For example, if you sell your home today and the value is $500,000, then you will pay the city $2,200 in city transfer tax. They are proposing that they now go into our pockets for that same $500,000 house sale and raise that tax to $4,400. This tax does not include the county that is already gouging you for $1.10. In Santa Monica, the city transfer tax is $3.00 and in Redondo Beach the transfer tax is $2.20.
A lot of other cities around us do not even charge a dime in transfer fees. These cities are doing fine and some of them even have a surplus of cash.
Instead of our elected leaders going into our pockets once again maybe they need to look into how to better manage the taxes that are already collected. Those other cities are doing well and Los Angeles is on the verge of another financial deficit. Maybe they need to look at how they have spent our hard earned money on years of wasteful spending and entitlement programs that they could not afford.
I’m not going to get into the political side of this issue, however the new modern day Tea Party movement, started in 2009, they got sick and tired of the politicians over-taxing them. Look how strong that Tea Party movement is today in government. They obviously have struck a chord.
Over-taxation is not the solution here guys; being responsible to the people that you serve is the solution. Stand up and stop being responsible only to the special interest groups. The housing market has been down for about seven or eight years. It is only now starting to recover.
There are still so many people that are upside down on their investments. These people are still in their homes making their payments and paying their property taxes. Now, because the folks in city hall cannot balance your books, you want to double the already high real estate transfer tax?
Shame on you.
I am sure if you work on it you will figure another way to manage the budget without yet another tax.
If you feel strongly opposed to this new tax that your elected officials are proposing, then call your city council person, and let them know that you will not vote to re-elect them if this goes through. Let them know that you are mad, and that you are going to tell everyone about this new double tax.
Unless you and all your friends get mad enough and make these calls to your representatives, city hall will be happy to take the money which will come out of your pocket. If you do not know who your city council person is then just call 311 and tell them where you live and they will tell you who “represents” you and then call them.
Any questions of comments please contact Matt Epstein @ Prudential California Realty @ somatt@aol.com or (818) 789-7408. Matt Epstein is considered the expert for real estate sales in the South/East San Fernando Valley.
