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

To: Lizzie Tudor who wrote (43661)	10/26/2005 11:09:09 AM
From: GraceZ	Respond to of 306849

After prop 13, the cities have decided that trying to get tax revenue from residential construction is fruitless New houses would pay taxes on the full sale value and therefore raise the average taxes paid. I don't know about your area, but in my area corporations extract large concessions from local governments in the form of tax forgiveness in order to build in their locale. Some very large commercial areas pay little or no property taxes. What you say about opposition to high density residential housing is true, that municipalities see them as a drain on services without adding in enough to the tax base to cover the cost. This is always a problem in countries where a minority of the population pays most of the taxes, all taxes.....employment, income, sales, property, etc. In this country, the burden of property tax is actually spread more evenly than income tax. This "don't build it here" attitude isn't limited to CA with it's Prop 13, it is going on all over the country. Where I live, there is enormous opposition to any kind of high density housing except in areas that are deemed urban renewal districts. Unless of course it is high density, luxury housing. They seem to approve those projects at a much higher rate. Local governments view residential construction as a bunch of freeloaders who use city services and don't pay for them (which is true, unfortunately) You are a homeowner, do you see yourself as a freeloader of city services?