The Sacramento Bee recently reported how a wealthy exodus from California to run from the new tax rules is concerning the Governor. “People with higher incomes pay a lot more money, and some of them may be tempted to leave,” Gov. Jerry Brown said.
The state’s wealthiest 1 percent, for example, pay 48 percent of its taxes, and the flight of only a couple of families could prompt a perceptible hit to state general reserve income.
Since real estate in waterfront areas is so costly with middle home costs in the nine-province Bay Area topping $768,000, the new tax structure will substantially increase the tax burden on wealthy homeowners.
Will the numbers motivate wealthy Californians to consider moving to other states? And what of the wealthy that went through devastating fires and mudslides in California? I know I would be weighing my options.
I think more wealthy Californians will be considering the Las Vegas area for relocation. Nevada is a more tax friendly state. The weather here is great. We are free from a fire that would destroy multitudes of homes. No major threat of earthquakes. And we are a hop, skip and a jump from the areas they may be continuing to do business in.
I have been receiving more inquiries from Californians looking at very high-end properties in the Summerlin area and the new high dollar developments in the hills above Henderson. I really do believe we will be seeing higher prices for luxury homes along with the construction of mega-mansions.
