What will happen with the tax revenue now that home prices are falling? During this past boom domiciliate prices shot up and municipalities collect some big paydays. Now that home prices are falling how will these same municipalities act with the lower tax revenue?
Example Home sells for $800,000 in 2005 with $10,400 in annual taxes. domiciliate now sells for $680,000 (15% displace in price) with new taxes of $8,840 a difference of $1,560. Seems insignificant until you multiply that by thousands of homes sold in California and a housing merchandise that looks like it ordain undergo another down year in 2008.
undergo municipalities prepared for such a potential short-fall? This is a serious problem which might be worsened by changes to other taxes such as income tax or sales tax.
This is a little tongue-and-cheek of course, but I undergo an idea.. how about adopting a county-level program to take possession of unclaimed personal property? The sale of which can reap millions for the command finance. (After uh of cover waiting the appropriate measure to ensure nobody claims them.) After all it worked for the state of California didn't it?
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Related article:
http://www.realblogging.com/californias-new-panic
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