The Taxman Cometh

Heads up to all you lucky Los Angeles home owners, today, April 10th is the last day to pay your property taxes without a late fee penalty. I love that LA lets you pay in two installments, one in December and one in April. Both months that are heavy on the pocketbook, so that’s a bummer, but at least you can spread it out over the year. Anyway, you’ve been warned. And at least California taxes don’t go up with property values, they pretty much stay in line with what you paid for the property, otherwise no one could afford property in LA.

4 Replies to “The Taxman Cometh”

  1. Actually, I would imagine that tieing property tax rates to property values would act as a brake on the increase of property values since if prices went up sharply, more homes would go on the market, creating a glut on the market and driving prices back down. It’s worth noting that all the insane run-ups in California property values have been post-prop 13.

    Of course other bizarre features of prop 13 lead to things like people paying higher property taxes on a 2-room shack than the owner of the 30-unit apartment building down the street pays.

  2. FYI : You can pay the taxes w/ your credit card, with a small additional service fee.
    So if you have a credit card that gives you airline miles or other rewards, this is a nice bonus.

  3. I’m with Don. Those of us who bought in recent years are mighty bitter that we’re paying higher property taxes on our tiny homes than people living in huge mansions… who managed to buy at the right time.

  4. Yeah, don & mike, I hear ya on the higher property taxes for smaller places. However, tieing the tax to the amount paid really does work for keeping people in the homes they can afford. When it’s tied to the market value, what ends up happening is that people are forced out of their homes as the values rise. Especially hard hit are retirees. It’s happening in Florida and other states where people just can’t afford to keep their property because the tax rates skyrocket. And their income doesn’t keep up. Even though it’s a bummer when you see a neighbor who has owned ten years longer than you have paying less taxes, it really seems equitable in the long run.

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