The biggest irony of SB2 is that it ignores basic economics. Think about it. A tax imposed on real estate transactions — obviously imposed only on those who own property — to pay for programs to make housing more affordable. This is like treating someone with a low blood count with leaches.
Article is Here
California is somewhere over $100 billion in debt.
They will NEVER run out of other people’s money until they just move away, and close their accounts.
The state is on its way to becoming a giant DETROIT. Too much of the tax base leaves and not enough stays to pay for it all.
Caliphornia is lost. RIP. Once a great state, now it’s vermin infested.
It’s almost as if while Trump is draining the big swamp, 50 smaller swamps are growing act an exponential rate!
The question I would ask is whether California would have a housing crisis at all if they tossed out even half the illegals in the state?
California should be proud for electing a mentally deranged man as the guvie.
I think you get hosed everywhere on a real estate transaction. I’m being quoted about $1800 in closing costs and I’m paying cash! All so some stiffs can shuffle some papers.
Old-Oaks@
Just like all the taxes, fees and imposts added on to the telephone bill!
….”expected to generate $250 million…”…..
should read “expected to steal $250 million” from “citizens’ bank accounts”….
fify
I doubt this fee will have any effect on the California housing market, which is crazy. In parts of southern California, “affordable housing” starts around $400,000.
Most new housing is in tracts. Depending on the size of the development, the developer is required to pay for streets, new schools, police and fire substations, and in some cases off-site traffic remediation (i.e. widening roads). Without arguing whether or not this is right or wrong, these fees have been estimated to be at least 25% of the cost of a new house.
The process can also take years. California’s environmental laws make it easier for environmentalists and NIMBYs to tie up development while their claims wend through the court system. There are native animals, plants and bugs to consider, as well as ancient historical sites, etc. etc. And yes, in some areas private landowners who want to build on their property have to submit to these rules as well.
Finally, included in the cost of home ownership are other factors such as HOA dues (almost all new developments have HOAs), Mello-Roos financing fees, and property taxes. Between these items, a homeowner can easily pay in excess of $1,000 a month before they even touch their mortgage.
These are dynamics involving issues dear to liberals and progressives, so I don’t expect anything to change in the foreseeable future. Orange County used to be affordable when I moved there a couple of decades ago, but now the rule is that once you move out, you can’t afford to move back in. A small bump in recording fees will neither exacerbate nor ameliorate the problems with California housing – particularly in most of the coastal areas.
Whut can Brown do for you?
Bend over!
That would also affect every poor miserable son of a bitch trying to leave that communist state. Think about that!