Will the new tax law chase wealthy Californians out? | Tim Talk | Tim Hunt | PleasantonWeekly.com |

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About this blog: I am a native of Alameda County, grew up in Pleasanton and currently live in the house I grew up in that is more than 100 years old. I spent 39 years in the daily newspaper business and wrote a column for more than 25 years in add...  (More)

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Will the new tax law chase wealthy Californians out?

Uploaded: Sep 18, 2018
Is the limitation on state and local sales tax deductions brought about by the 2017 federal tax reform going to motivate wealthy Californians to leave the state?
Next year, when they file taxes, the impact on their checkbooks will be obvious. Will that prompt an exodus to states with no state income tax like Nevada, Florida, Texas or Washington? The same calculation is going on in the Northeast in high-tax states such as New York and New Jersey.
Here in California, given the price of housing in the Bay Area and the high wages paid in the technology and other industries, the state income tax for highest earners is 13.3 percent. Losing that deduction is causing some affluent families to think about moving.
The San Francisco Business Times devoted a major story about this trend in late August and there’s other anecdotal evidence.
One friend told me that a leading real estate broker in Blackhawk told him that seven of the 10 last sales were by families leaving the state.
And then there’s the Nevada addresses. The Business Times cited an Incline Village, NV Realtor reporting a big upturn in Californians looking for year-round homes in that exclusive area.
CalMatters Columnist Dan Walters reported this earlier this summer, “David Hutchinson, who developed the Clear Greek golf community on the Nevada side of Lake Tahoe, told the Journal, “Most of our lot sales are to buyers from California, the vast majority of whom intend to make them a permanent residence.”
Someone earning $3 million a year could move his or her personal home from San Francisco to Tahoe, Hutchinson said, and save $399,000 a year in taxes, adding, “That’s a lot of money to spend on real estate.”
The gated Clear Creek Community, which features a showcase golf course by designers Ben Crenshaw and Bill Coore, is located right off Highway 50 on the Nevada side of Spooner Summit. From there, it’s an easy run in the summer to Lake Tahoe or down into Carson City for groceries or to either side of Heavenly Valley Ski Resort.
The Clear Creek developers built the golf course prior to the financial crisis in 2008-09 and kept it operating while delaying the sale of any lots for custom homes. Home sales started in 2017 and have ramped up this year. The Nevada address, coupled with the excellent golf course and other amenities, give it a competitive advantage over wonderful Truckee private golf course communities with California zip codes for year-round residents.
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Comments

 +  Like this comment
Posted by Michael Austin, a resident of Pleasanton Meadows,
on Sep 18, 2018 at 7:43 pm

In all my years, I wrote one check to the IRS.
At tax filing deadline.
This year, for the first time in my life I am writing five checks to the IRS.
A check each quarter, and a check at tax filing dead line.


 +   2 people like this
Posted by DKHSK, a resident of Bridle Creek,
on Sep 18, 2018 at 8:07 pm

DKHSK is a registered user.

The same people who either voted or supported various tax rate hikes in the past should have NO PROBLEM paying more now.

What goes around comes around.


 +   3 people like this
Posted by Michael Austin, a resident of Pleasanton Meadows,
on Sep 18, 2018 at 8:57 pm

My increase in Federal tax payments is a result of the Trump tax reform program.
Fortunately for me, my CPA is on top of it and will prevent me from a huge tax liability at tax filing time April 2019.

DKHSK, brace yourself for your tax bill April 15, 2019!
Tim in this blog provided a valid heads up, that many such as your self will experience a huge surprise at 2019 filing time.

For the record, I have voted against every tax proposal that has ever surfaced.
In losing, I am resigned to pay the tax that that is on my plate.


 +   1 person likes this
Posted by DKHSK, a resident of Bridle Creek,
on Sep 18, 2018 at 10:43 pm

DKHSK is a registered user.

Michael,

My comment was not directed at you, it was directed at those who have voted for tax increases or supported tax and fee increases through deed and word: mainly democrats and socialists, though I repeat myself.

My gut tells me that they will be the ones complaining the loudest and judging from past discussions here on PW, I think I'm right.

I'll accept the new increase.

Dan


 +   1 person likes this
Posted by James, a resident of Val Vista,
on Sep 19, 2018 at 2:58 pm

I'm not a high wage earner...actually I'm retired and I'm bound for Henderson, NV. Most of the people and family I know who are leaving are simply middle class people who are becoming fed up with CA taxes, much of which are hidden, not the Federal Tax changes, and creeping communism that is supported by the Democrat Party. DKHSK is right.


 +   7 people like this
Posted by Cholo, a resident of Livermore,
on Sep 20, 2018 at 12:06 pm

GOOD DAY James,

I'm crossing my fingers and praying that "creeping communism" doesn't take over your tiny corner of the werl...

HEAVEN FORBID!


 +   5 people like this
Posted by Cholo, a resident of Livermore,
on Sep 23, 2018 at 11:22 am

Dan...Mil Gracias for paying your FAIR share of the taxes!

I'm certain that others who pay less taxes will be grateful.

That's what I call being a responsible AMERICA! yup...

VIVA AMERICA!

FYI: I have NO intention of leaving the GREAT STATE OF CALIFAS!

no no no...


Sorry, but further commenting on this topic has been closed.

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