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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Tradelite who wrote (21929)	7/5/2004 12:04:45 PM
From: Tradelite	Respond to of 306849

Real estate tax swells local tax coffers by huge amount...we may soon be hearing the same story from other jurisdictions. [this news item should be of special interest to the person who opined on this thread a while back that all taxes should be scrapped and we should just tax real estate sales via "tax stamps" as reportedly done in the UK--he didn't seem to realize property sales result in mucho tax income here already] ____________ D.C. Finds Itself Flush With Cash Monday, July 5, 2004; Page E02 Virginia just raised taxes and Maryland politicians are trying to figure out how to raise cash. But in the District, it may be time for a tax cut. It's been a very good year for the District, and chief financial officer Natwar M. Gandhi says it is going to get better. Last week he raised his revenue estimate for the fiscal year beginning Oct. 1 by $100 million, to $4.1 billion. In a news release, he called revenue "astonishing compared to what was originally predicted." In 1999 the District passed broad cuts to individual income taxes, then suspended them in 2001 when revenue slumped. Based on the new revenue projection, the law is supposed to go back into effect next fiscal year, though the D.C. Council must make it happen. The city's highest marginal income tax rate would be cut to 8.5 percent from its current 9.3 percent and that rate would kick in at $40,000 of income, not the current $30,000. The additional revenue came from all parts of the economy: Strong individual income tax collections, which rose 15.6 percent in the first five months of the year compared with a year earlier. Corporate franchise tax receipts rose 24.9 percent, suggesting strong business profits. Sales tax receipts grew 9.6 percent, indicating tourists and others spent readily at stores in the District. And deed taxes rose a staggering 61.8 percent, reflecting a booming real estate market. -- Neil Irwin © 2004 The Washington Post Company

To: Tradelite who wrote (21929)	7/5/2004 1:19:06 PM
From: SouthFloridaGuy	Read Replies (3) \| Respond to of 306849

Trade, Yes I know real-estate swells. But I have been watching these figures for 5 years now and this is the most inventory I have seen on both an absolute and relative basis by about 30%. In some of the top areas, inventory is up 2-3x. On an absolute basis, we're not talking about many homes, but still, I never imagined that many would ever be for sale and not selling I may add. Not trying to make a blanket statement for the nation as a whole, but given Long Island as one of the pinnacles of the bubble pockets, I find it rather interesting to see this phenomena.