CA State Tax Credit Proposal

Larry O. Doss Thursday, February 26, 2009

Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS®

Dear C.A.R. Member:

Following several months of debate and delays, our state representatives in Sacramento delivered a 2009-2010 budget to Governor Schwarzenegger today. The governor is expected to sign the budget as presented. Although details are sketchy, the budget appears to raise existing sales tax levels by 1 percent, and places a 0.25-percent income tax increase across the board. Under provisions included in the new budget, the vehicle license fee will increase from 0.65 percent to 1.15 percent of a vehicle’s value.

The budget also includes: a tax credit (equal to the lesser of 5 percent of the purchase price, or $10,000) for the purchase of a single-family residence that has never been occupied, as a principal residence, between March 1, 2009, and March 1, 2010; and a 90-day additional delay in foreclosure sales, intended to force lenders to implement a proactive workout program that rewrites loans in default.

The state budget package also includes a limit on future spending as a trade-off for new taxes; this would have to be approved by voters in a statewide ballot at a special election on May 19. This approach also contemplates $5.5 billion in short-term loans and voter approval of a plan to borrow $5 billion this year against future lottery revenues at the same statewide ballot election.

Fearful that special interests may try to derail the effort at the ballot box, a provision has been included in the budget to extend the major new taxes by one to three years if the spending cap is approved by the voters. Voters also would have to approve some shifting of existing special funds for mental health services and child development programs to help balance the budget.

Should California receive more than $9.2 billion in federal aid, the income tax increase would fall from 0.25 percent to 0.125 percent, and $950 million in planned spending cuts to several programs, including in-home care and Medi-Cal, would be eliminated.

At the demand of Senator Maldonado (R-Santa Maria) -- who cast the final vote needed to pass the budget -- three additional propositions will be placed before the voters. If approved, these would institute an open primary system, prevent legislators from getting paid if the budget is not passed on time, and will stop salary increases to legislators if the state is operating in the red.

Although both the process and the result have left a lot to be desired, having a balanced budget in place is critical for our state in these challenging times. Our Sacramento staff and our member volunteers will continue to monitor, advocate, and report on the actions of our elected representatives in Sacramento. We’ll keep you apprised of additional information as it becomes available.

Sincerely,

James Liptak
2009 President
CALIFORNIA ASSOCIATION OF REALTORS®






C.A.R. e-Blasts are published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing nearly 200,000 REALTORS® statewide.

Executive offices:
525 South Virgil Ave., Los Angeles CA 90020
phone (213) 739-8200; fax (213) 480-7724

Legislative offices:
980 Ninth Street #1430, Sacramento CA 95814
phone (916) 492-5200; fax (916) 444-2033

To view C.A.R.’s Privacy Policy click on this link:
http://www.car.org/aboutus/privacypolicy

You are receiving this in HTML. To receive it in text format, Click here
To be removed from this mailing list please do not respond to this e-mail. Simply Click Here

To contact C.A.R., click on this link:
http://www.car.org/?view=ContactUs



| Link directly to this article.
Replies
No replies yet.

Latest Posts:


Categories:





Based on information from the Humboldt Association of REALTORS®, as of 01/27/2023. All data, including all measurements and calculations of area, is obtained from various sources and has not been, and will not be verified by broker or MLS for accuracy. All information should be independently reviewed and verified of accuracy. Properties may or may not be listed by the office/agent presenting the information. Copyright ©2022 Humboldt Association of Realtors®. All rights reserved.