What if a corporation owns the property? If you do this, I would transfer the property to a corporation and then rent it back to myself for a $1 a year. The corporation would have only $1 of income per year.
This is so badly thought out.
No, I'm proposing taxing city residents on their income regardless of whether they own or rent. If the owner of the parcel doesn't live in the city then he wouldn't pay a dime of income tax to the city -- he would pay the parcel tax to the city where the parcel is located, and he would pay income tax wherever he lives.
Time for the international buyers to buy housing en masse, rent it out, and not pay your income tax. The renters would be stuck paying the income tax and the international buyers would just pay the parcel tax. So renters would be stuck paying for rent and an additional income tax for renting. Hahahahaha.
That's fine, they will pay the parcel tax and their tenants will pay income tax.
It seems wrong to me to make someone pay tax where they do not live. It's not like the owners of rental homes are the people who use the city services -- the people who live in the homes do, and they should pay for them.
Way to screw over renters with an additional tax. That sure sounds regressive to me. The owners are generally much richer than the renters.
Another hack. Claim residency in another state or country. Voila your personal income tax for the property disappears and you can live in the home for one day less than six months out of the year. This proposal would be a vacation home rebate. In fact, just keep buying vacation homes. The people stuck living there year round would be screwed.
Another hack. Buy the biggest parcel you can find. Then you can build a huge home and pay the same taxes as the 800 square foot bungalow. Build a bunch of huge vacation homes. The help have to pay for the services. You don’t.
Yet another hack. Build a house and rent it out on AirBnB. That way you only pay the parcel tax and NO ONE pays the income tax. Genius. It’s a discount to run an AirBnB. Better raise the hotel tax to compensate.
Re:California Property Taxes Mapped
by seiferteric on Saturday October 31, 2020 @12:26AM
(#24949131)
Pretty sure that won't work. CA is famous for vigorously going after people trying to doge taxes like this, and the rules for residency/part year residency are pretty stringent for what taxes you will owe.
So you are taxing an owner of a rental on their total income rather than the income they earn on the property?