Compost Headlines: Untaxing Time For Rich

Some of us think the real victor in the elections were the big corporations and oligarchs who finance and own the political system.
While the Dems and Reps would like us to believe they are different, they just sent $85 billion to Ukraine for yet another proxy war. Imagine if Trump did that. But wrap the issue up in a way that disguises the conflict in a fake story line and no one complains.
I'm complaining.
Americans are dying for lack of access to healthcare. Drugs remain too expensive for too many people. Student debt is crippling a generation. Teachers are under paid and overworked. Mass transit is a dream, while roads and cars are top priorities in state finances.
And the planet is heating up and governments give lip service to reducing carbon emissions while their corporate sponsors rack up record profits.
And just wait for the reckoning to come on the failed approach to the pandemic.
Americans have legitimate grievances, but no way to push for change.
No wonder people "follow" wackos like Alex Jones.

Paul, - Some of you are proposing that 360State should be taxed at its sales price of $162 Million instead of the current City valuation of $115 Million.

If that happened, the taxes per apartment would climb from $470/month up to $690/month, which is great in theory. Except:

1) if you tax the property that heavily, it will cut deeply into bottom line returns, and suddenly the property will no longer be worth $162 Million. Meaning once values adjust from the increases tax burden, the City might be left with the same actual revenues.

2) the bigger problem is that by pushing these assessments, City could kill off further new developments, and effectively put an end to Grand list growth.

As cash-strapped as the City is, I have to believe there are good reasons the Assessor isn’t using purchase prices or the sales comparison approach to value its big commercial properties.

I have slept on the compost heap harangues, let ‘em know Mr. Bass!!! Keep it going!!

"The ultrawealthy pay 7.1 percent of their income in state and local taxes, compared to 26 percent for lower- to middle-income filers, according to the latest state figures."
Paul, you do not provide a link for your assertion. Kevin McCarthy has previously cited a study which imputes landlords' property taxes to renters. Yes, property taxes are one cost which provides a floor below which dwellings cannot be rented, but do we really believe that lower property taxes would lead to lower rents in an economy where the market rents are higher? As a landlord, I may be forced to raise rent due to a tax increase, but I would charge less due to a tax decrease. Nor would I rent to a lower bidding tenant simply because I could still cover my costs at a lower price. I expect most landlords would rent to the highest paying responsible tenant they could find, regardless of costs.

1644-- report released in March 2022 by the state Department of Revenue Services (which is run by a Republican) based on 2019 data. Received little attention. Legislature mandated the report a year earlier; the department had stopped preparing those reports after 2014.

AVGTXP,

By your same logic, small residential property values carry a burden of suppressed resale value and are therefore treated unfairly relative to large residential. It should go one way or the other for all of us.

@ Robin - you premise is off. Commercial real estate is valued according to its return on investment. Residential property is not.

The City could care less about how much major landlords pay in taxes. But besides maximizing revenues, they are also trying to grow the Grand List. My guess is the City absolutely knows what it is doing, when they value big buildings by ROI’s and not purchase and sales.

Paul...why not ask Mr. Pullen and Elicker for their reactions. Or maybe Vision Appraisal. It's my understanding that Vision Appraisal does the valuation.

At the very least Vision Appraisal should share its methodology.

I think the vlog raises several related but separate questions
1.Were the valuations reasonable at the time they were done?
For most properties, notably 1-4 unit buildings, I believe they were. But larger buildings sold shortly before or after revaluation routinely have had prices that substantially exceeded their 2021 appraisals.

Dennis, a guess.

The assessors/Vision have detailed income data for commercial properties, including multifamily housing. They also have comparable sales data for some of these properties. Using the two data sets, they calculate capitalization ratios, which reflect building location as well as building characteristics. This approach is fully consistent with the law. And it works well in many cases. Three flats are sold all of the time, creating a large database of comparable sales. And they are highly unlikely to be developed into any other type of use and thus have relatively modest speculative value. In contrast, a commercial building may be worth far more than it is now if it is converted to housing. Assessing the speculative value of such buildings is inherently subjective.

Patricia Kane: "While the Dems and Reps would like us to believe they are different, they just sent $85 billion to Ukraine for yet another proxy war. Imagine if Trump did that."

That's way good.

Last night, I decided to poison my mind and watch some of Trump's speech, where he has decided to run again for president.

disclaimer - I had 4 pints of Guinness Pub Draught in me prior to doing this.

To my horror and surprise, I found it pretty hard to disagree with what the man was saying, because truth be told it's been HORRIBLE since he left office, and I can't help but wonder if this Russian Invasion of Ukraine would have ever even happened !!!

All I know is that this so called proxy war is bankrupting the western world far more than the virus could ever even conceive.

Why does the U.S. have to sell [give??] oil and LNG to Europe ??
Why are we being punished for something Europe chose to do ?? [get their fuel from Mother Russia]

I will relate to you a simple story: My washing machine exploded a month ago.
[I know, I should be so lucky to even have had the privilage to own one..]

I'm about $300.00 into it with doing the repairs myself, since HVAC was one of my former trades I know a few things about mechanic's... anyhow, last night I realized there is nothing that can be done to remove the hub nut, especially after destroying the transmission shaft with a torch....

So, that will go to the junk yard.

It will be replaced with a utility sink with a pump, and a vintage Horseshoe Brand Clothes Wringer - because I cannot afford to buy a new washing machine, and I'm not willing to risk buying something used.

In light of all this I have discovered the joys of going to the wash house... and have to say there is something to be said with mingling with the working class.

Where I am going with this - is [back to Patricia's observation] is - I'm pretty sure if Trump did get his second term, we would not be having this conversation right now, and I'm Left Wing !!