State could offer a $10,000 tax break for buyers of new homes [Updated]
California lawmakers started back up today trying to secure one last vote for a $42-billion budget-balancing plan. From "One vote shy, state budget still in limbo" today at latimes.com:
... Two Senate Republicans were expected to vote for the package -- Dave Cogdill of Modesto, who played a role in negotiating the deal, and Roy Ashburn, a Bakersfield Republican in his final term. Among the concessions Ashburn won was a proposed $10,000 tax break for new home buyers.
Update: Thanks to commenter Cal for the link to the bill. As Cal correctly points out, it is for the purchase of newly built homes -- must be a principal residence bought on or after March 1 this year and before March 1 2010.
-- Lauren Beale
Thoughts? Comments?
Photo: Assemblymen Van Tran (R-Garden Grove), left, and Joe Coto (D-San Jose) slept in the Assembly chamber in the early morning hours of Feb. 15 while party leaders tried to win over a GOP senator.
Credit: Rich Pedroncelli / Associated Press
Lauren:
The text of the bill is here:
http://info.sen.ca.gov/cgi-bin/postquery?bill_number=sbx2_15&sess=CUR&house=B&site=
http://info.sen.ca.gov/pub/09-10/bill/sen/sb_0001-0050/sbx2_15_bill_20090215_amended_sen_v98.html
Posted by: Cal | February 16, 2009 at 12:59 PM
Prepare for the people complaining they aren't getting enough free money..
It is only for buyers buying a Brand New home.
Posted by: Cal | February 16, 2009 at 01:07 PM
Does CA really need a lot of new homes right now? NO WAY! What a crock? Another handout to an industry lobbying group.
Do we really need to waste our taxes on this nonsense?
I am fed up with both parties.
Posted by: Jeff S | February 16, 2009 at 02:02 PM
Not sure how much this bill will fight declining home prices and foreclosures in California. It might help in the constuction sector, but home prices in California need to stabilize first before new building can occur. Obama's current $8,000 tax credit for new homebuyers is too little for the State of California.
This should be amended to help people who are on the verge of buying a home, but can not afford it yet.
Posted by: Cal economy | February 16, 2009 at 02:18 PM
I'm not trying to complain here...
But...Why do we give a handout to the home builders??? and not allow this credit for buyers of REO. I personally thing that buying REO and removing a foreclosed house from a street is much better value for the buck.
1) Eliminating empty house that can remove drug dealer, prostitution from the block.
2) Have the new owner put money into the REO (in most cases REO needs work) so that that will help the local economy with jobs.
3) Reduce inventory of houses and balance supply with demand.
Home builders have build house from scratch, the only question is how much profit they decide to get...They have the most room to reduce the price...unlike 3rd party sellers of houses that in most cases are up side down here in LA and all the room to reduce is up to the selling bank...
Posted by: Laker | February 16, 2009 at 02:19 PM
Let's hope the lawmakers will be niggard with any tax increase proposals.
Posted by: MyLessThanPrimeBeef | February 16, 2009 at 02:25 PM
Also....
I thought that California is in a budget crisis and have no money so we start giving IOU.
Is this credit going to be in the form of IOU??
And, which home builder just paid off state assembly man. Somebody was paid for sure...
This is a time where the state is increasing taxes on gas, car registration, income tax....but rewards the home builders with free money....
REDUCE THE ASKING PRICE SCUMBUILDERS !
Posted by: Laker | February 16, 2009 at 02:26 PM
Fat lot of good that's going to do in Los Angeles. But he's from scenic Bakersfield, and they do have a lot of brand new ghost-tracts there. I'm sure in Merced and Stockton and other exurban locales, there are plenty of new empty homes to be had.
It's not so much that I'm angry that this handout won't do me any good, it's more that I'm pissed that I have to keep paying for *everyone else's handouts* while I am trying to buy a house the old fashioned way. You know, by saving up a down payment and paying off my existing debt. Which is really hard when my taxes are going up and the interest rate on my various savings vehicles is tanking.
Posted by: Marie | February 16, 2009 at 03:00 PM
Tell your Cali Senators that helping buyers of NEW homes is NOT ENOUGH HELP
California Republican State Senators
Senator Dave Cogdill - District SD14
Capitol Office
State Capitol, Room 305 Sacramento, CA 95814 Phone: (916) 651-4014 Fax: (916) 327-3523
Senator.Cogdill@senate.ca.gov
Senator Sam Aanestad - District SD04
Capitol Office
State Capitol, Room 3063 Sacramento, CA 95814 Phone: (916) 651-4004 Fax: (916) 445-7750
Senator.Aanestad@senate.ca.gov
Senator Dave Cox - District SD01
Capitol Office
State Capitol, Room 2068 Sacramento, CA 95814 Phone: (916) 651-4001 Fax: (916) 324-2680
Senator.Cox@senate.ca.gov
Senator John Benoit - District SD37
Capitol Office
State Capitol, Room 4066 Sacramento, CA 95814 Phone: (916) 651-4037 Fax: (916) 327-2187
Senator.Benoit@senate.ca.gov
Senator Jeff Denham - District SD12
Capitol Office
State Capitol, Room 3076 Sacramento, CA 95814 Phone: (916) 651-4012 Fax: (916) 445-0773
Senator.Denham@senate.ca.gov
Senator Robert Dutton - District SD31
Capitol Office
State Capitol, Room 5094 Sacramento, CA 95814 Phone: (916) 651-4031 Fax: (916) 327-2272
Senator.Dutton@senate.ca.gov
Senator Tom Harman - District SD35
Capitol Office
State Capitol, Room 3070 Sacramento, CA 95814 Phone: (916) 651-4035 Fax: (916) 445-9263
Senator.Harman@senate.ca.gov
Senator Dennis Hollingsworth - District SD36
Capitol Office
State Capitol, Room 5064 Sacramento, CA 95814 Phone: (916) 651-4036 Fax: (916) 447-9008
Senator.Hollingsworth@senate.ca.gov
Senator Bob Huff - District SD29
Capitol Office
State Capitol, Room 3048 Sacramento, CA 95814 Phone: (916) 651-4029 Fax: (916) 324-0922
Senator.Huff@senate.ca.gov
Senator Abel Maldonado - District SD15
Capitol Office
State Capitol, Room 4082 Sacramento, CA 95814 Phone: (916) 651-4015 Fax: (916) 445-8081
Senator.Maldonado@senate.ca.gov
Senator George Runner - District SD17
Capitol Office
State Capitol, Room 5097 Sacramento, CA 95814 Phone: (916) 651-4017 Fax: (916) 445-4662
Senator.Runner@senate.ca.gov
Senator Tony Strickland - District SD19
Capitol Office
State Capitol, Room 4062 Sacramento, CA 95814 Phone: (916) 651-4019 Fax: (916) 324-7544
Senator.Strickland@senate.ca.gov
Senator Mimi Walters - District SD33
Capitol Office
State Capitol, Room 3082 Sacramento, CA 95814 Phone: (916) 651-4033 Fax: (916) 445-9754
Senator.Walters@senate.ca.gov
Senator Mark Wyland - District SD38
Capitol Office
State Capitol, Room 4048 Sacramento, CA 95814 Phone: (916) 651-4038 Fax: (916) 446-7382
Senator.Wyland@senate.ca.gov
Senator Roy Ashburn - District SD18
Capitol Office
State Capitol, Room 3060 Sacramento, CA 95814 Phone: (916) 651-4018 Fax: (916) 322-3304
Senator.Ashburn@senate.ca.gov
Posted by: Help our Homes | February 16, 2009 at 03:07 PM
"Prepare for the people complaining they aren't getting enough free money.."
Can I call these things or what!
Posted by: Cal | February 16, 2009 at 04:16 PM
Yet another brain dead idea from the state! I don't know if I can count all the things wrong with this idea, but let's give it a try:
1. state is too broke to be giving tax credits
2. this will encourage the bubble to reinflate
3. we need to work through the existing excess inventory, not add to it by building yet more tracts in yet more sprawling suburbs
4. this is nothing but a giveaway to developers
Did I miss any?
Posted by: blueskies | February 16, 2009 at 06:06 PM
Why should my taxes go up so that the money can be given to someone buying a house. If they can't afford a new house without government assistance, then maybe they shouldn't be buying. Just don't raise my taxes!
Posted by: CM | February 16, 2009 at 07:32 PM
Just don't raise my taxes!
Posted by: CM
CM,
I agree. If California had vast surplus of money, i would think that giving money away is good if it can help the general state economy. However, since we are in a $41 Billion hole...I think we should be in the business of getting money and sure not giving money that we don't have...
I don't think it is fair to tax guys like CAL more, so that his money can be given to the home builders near Bakersfield...
Posted by: Laker | February 16, 2009 at 09:26 PM
blueskies, I think you forgot the impending water shortage, and the fact that most of these "new houses" are ending up in farflung exurbs without a reliable water supply... and yet will demand green lawns and swimming pools.
Last I checked, I thought we were so far in the hole we were closing state parks, laying off 20,000 state workers, and issuing IOUs instead of tax refunds. My mistake. Where there's a lobbyist, there's a way.
Posted by: Marie | February 16, 2009 at 09:37 PM
Do you know why this housing credit doesn't matter? Because its not going to help people qualify for loans at current prices.
This is just a gesture for publicity so politicians can show that they care...Awwwwww, warms my heart.
Posted by: lalandjunkie | February 17, 2009 at 01:21 AM
OMG, it must be snowing in hell! I agree with Laker (at least on his first two posts)! AAAAARRGH!
Posted by: sfvrealestate | February 17, 2009 at 12:23 PM
The picture of tells it all. These fools make decisions while they are asleep or sedated by some medication. 10K in a new home will evarotate in the first month. The new home will lose that much value in the first month. Why doesn't our government understand that homes are still too expensive.
Posted by: jag | February 17, 2009 at 01:40 PM