Archive for the “Taxes” Category

Does Frank have something stuck in his mouth?

LMAO - AWB

U.S. Rep. Mark Souder released the following statement today, after he voted for House passage of H.R. 1424. The bill passed the House by a bipartisan majority of 263-171.

“This bill is not the bill that I or other Republicans would have chosen, but with a Democrat-controlled Congress, any bill must be a compromise. Possible failure of our economy was not an option.”

AWB

Fox News is reporting (here).

This was emailed to me a while ago and if you’re a basketball fan you’ll appreciate it even more. It was reportedly created by a general partner at Sansome Partners named Mark Slavonia.

Click for larger image.

AWB

H/T – BB

From The New York Times Sept. 1999

Fannie Mae Eases Credit To Aid Mortgage Lending

By STEVEN A. HOLMES
Published: September 30, 1999

In a move that could help increase home ownership rates among minorities and low-income consumers, the Fannie Mae Corporation is easing the credit requirements on loans that it will purchase from banks and other lenders.

The action, which will begin as a pilot program involving 24 banks in 15 markets — including the New York metropolitan region — will encourage those banks to extend home mortgages to individuals whose credit is generally not good enough to qualify for conventional loans. Fannie Mae officials say they hope to make it a nationwide program by next spring.

Fannie Mae, the nation’s biggest underwriter of home mortgages, has been under increasing pressure from the Clinton Administration to expand mortgage loans among low and moderate income people and felt pressure from stock holders to maintain its phenomenal growth in profits.

In addition, banks, thrift institutions and mortgage companies have been pressing Fannie Mae to help them make more loans to so-called subprime borrowers. These borrowers whose incomes, credit ratings and savings are not good enough to qualify for conventional loans, can only get loans from finance companies that charge much higher interest rates — anywhere from three to four percentage points higher than conventional loans.

”Fannie Mae has expanded home ownership for millions of families in the 1990’s by reducing down payment requirements,” said Franklin D. Raines, Fannie Mae’s chairman and chief executive officer. ”Yet there remain too many borrowers whose credit is just a notch below what our underwriting has required who have been relegated to paying significantly higher mortgage rates in the so-called subprime market.”

Demographic information on these borrowers is sketchy. But at least one study indicates that 18 percent of the loans in the subprime market went to black borrowers, compared to 5 per cent of loans in the conventional loan market.

In moving, even tentatively, into this new area of lending, Fannie Mae is taking on significantly more risk, which may not pose any difficulties during flush economic times. But the government-subsidized corporation may run into trouble in an economic downturn, prompting a government rescue similar to that of the savings and loan industry in the 1980’s.

”From the perspective of many people, including me, this is another thrift industry growing up around us,” said Peter Wallison a resident fellow at the American Enterprise Institute. ”If they fail, the government will have to step up and bail them out the way it stepped up and bailed out the thrift industry.”

Complete story is here.

No one was listening?

AWB

From the JG

INDIANAPOLIS – Would you be willing to pay more for a haircut, a plumber or even building a home in exchange for having no property taxes?

That’s the question raised Wednesday at a key summer tax panel by two conservative legislators pushing to expand the state’s sales tax to include services as a way to finance a complete elimination of homeowner property taxes.

More here.

INDIANAPOLIS – State officials are considering a subtle change to Indiana’s assessment rules that could have a large effect on properties in mixed-use areas.

Assessors annually use sales data of like properties in an area to adjust the assessed value of a property, a process called trending.

But the Department of Local Government Finance – which oversees the assessment system – is drafting a new assessing manual that could change the process. It wouldn’t be applied until taxes payable in 2012.

In the proposed manual, the Department of Local Government Finance wants to move from a “market value in use” system to just “market value” – a change that sounds small but has some county and township assessing officials worried.

E-mails are floating around saying that the change in rules would shift the burden of property taxes from commercial and industrial property to residential.

[...]

Department of Local Government Finance spokeswoman Mary Jane Michalak said Indiana’s current market value in use system reflects the way property is being used now.

But most other states use market value, which is what properties of a similar nature are going for on the open market regardless of their current use.

Under the proposal, in areas having mixed usage of commercial, industrial and residential properties, homes would no longer be compared with only similar residential properties. Instead nearby properties in other categories – such as commercial or industrial – may also be included in the sales data used to determine the assessed value on that home.

How does a property valued at say $1.5 million that is occupied by a retailer have a anything thing to do with the value of a home? When a realtor tries to come up with the value of your home for listing, they use the tried and true method called “comparables”. From Wiki:

Comparables (or comps) is a real estate appraisal term referring to properties with characteristics that are similar to a subject property whose value is being sought.

How does commercial and industrial property have anything to do with residential property values? It doesn’t.

Maybe the Department of Local Government Finance is feeling the heat from cities and towns for their losses in property tax revenues. This appears to be nothing more than a way to sidestep the recent property tax decreases.

AWB

Fort Wayne Community Schools superintendent Wendy Robinson may be in violation of Indiana Code 6–1.1–5.5–10. According to the Department of Local Government Finance web site, Robinson own two Fort Wayne properties and has claimed a homestead exemption on both.

The first property is located at 1536 Woodland Crossing, Fort Wayne, IN 46825. Also listed as an owner is her husband Jim. The second property is located at 5420 Smith Street, Fort Wayne, IN 46806. Also listed as owner is her Mother, Lorene Sanders-Jones.

Wendy Y Robinson is listed as a taxpayer on both properties. According to the Allen County Property Tax gateway, the exemptions are $48,000 and $25,500 respectively.

I spent a great deal of time reading Indiana House Bill 1293 and started getting a headache. However, I could not find where if you are a joint owner on two properties, you’re allowed multiple exemptions. Any realtors care to offer their 2 cents? Kalb?

Another FWCS employee, Rebecca Rutkowski works in the FWCS purchasing department. Her and husband Richard own three properties according to the DGLF web site, and have filed for three Homestead Exemptions.

Homestead Header   
Detail 02 Allen 021111353014000075
RUTKOWSKI RICHARD A & REBECCA L 2630 COVINGTON WOODS BLVD FORT WAYNE 46804

Detail 02 Allen 021215228007000074
RUTKOWSKI RICHARD A & REBECCA L 2838 THOMPSON AV   517

Detail 02 Allen 021223232003000074
RUTKOWSKI RICHARD ALAN & REBECCA LO 4413 WILMETTE ST   662

Must be catchy, eh?

AWB

The 1% sales tax increase from 6% to 7% goes into effect tomorrow. BFD.

Let’s put it in perspective.

Item                           Increase

A $24 shirt  –               24 cents
A loaf of bread             None
A tube of toothpaste     2 cents
Bag of M & M’s             3 cents
Gallon of milk                None
One stick deodorant      3 cents
13.5 oz Pert Shampoo 3 cents
18 ox T-Bone Steak       None
Mach 3 Razors 4–pack   11 cents
Gallon of gas                3 cents
Pound of hamburger       None
$30,000 car                 $300
Snickers Candy Bar        .06 cents

This is going to be tough to swallow, isn’t it?

If you don’t like it here, you could consider moving to Chicago. Their sales tax rate 10.25 percent.

AWB