California just passed Proposition 30 in our November 2012 elections. (http://ballotpedia.org/wiki/index.php/California_Proposition_30,_Sales_and_Income_Tax_Increase_(2012)) This bill raised the maximum tax rate on California high income earners from 10.3% to 13.3% starting retroactively in 2012. The onus of keeping the school system funded was put on the top income producers by increasing their CA tax bite by nearly 30% annually. While some of the people who fall in this category might already be well aware of this increase, I bet most won’t feel the bite until next April when their accountants give them the bad news.
What options does this segment of the market have? Can they relocate their business or find a job in states that do not have such onerous tax burdens? Will they move away from their family and friends to save on their annual tax bills? Some will, some won’t but most will give it serious consideration.
I have seen numerous examples of people moving to Nevada (http://whynevada.com/lowtaxclimate/) prior to exercising their stock options or other big taxation events. One client of mine commented, just prior to buying a $3mil lakeview estate in Zephyr Cove, Nevada, that he would save enough money by establishing residency in Nevada, to pay for the house!
I moved to Zephyr Cove, NV from San Luis Obispo, CA in 1980 and have benefited from the tax laws in Nevada for over 30 years. The compounding effect and the time value of money have made quite a difference on my overall net worth over those years. I can only imagine what a difference it would make to people in the highest tax brackets.
When most people think of Nevada, they think of Las Vegas, Reno or maybe the vast unpopulated areas of the Mojave Desert. Few people think about Lake Tahoe, Nevada. The views are stellar, the air is clear, there’s unlimited recreational opportunities, Lake Tahoe is still one of the clearest lakes in the world and the Reno/Tahoe International Airport is only an hour away. I believe Lake Tahoe, Nevada is the most gorgeous place to live in the whole state.
Lake Tahoe, Nevada consists of numerous communities; Stateline, Zephyr Cove, Glenbrook and Incline Village. All have their own unique characteristics but share in all the natural beauty Lake Tahoe has to offer. Additionally, home values have plummeted over the last 5 years and prices have dropped up to 50% since 2006. It now appears to be an excellent time to invest in Lake Tahoe.
If you’re more into a rural setting, the Carson Valley, the towns of Minden, Gardnerville and Genoa (www.mccallminden.com) offer beautiful ranch land allowing for horses and a bit more elbow room between homes.
All in all, Nevada offers more than just a desert setting and glitzy lights, it offers a wonderful lifestyle for the outdoor enthusiasts or the horse loving people of the world.
To check out properties in all of the areas mentioned visit our website at www.mccalltahoe.com
This article was written by Thane McCall, the broker of McCall Realty. McCall Realty is licensed in both CA and NV and is currently serving the communities of South Lake Tahoe, CA, Zephyr Cove, NV, Stateline, NV, Glenbrook, NV, Minden, NV, Gardnerville, NV and Genoa, NV.