| San Jose Tax Hour: Frequently Asked Questions |
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| Written by Administrator |
| Sunday, 26 December 2010 09:32 |
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San Jose Tax Hour: Frequently Asked Questions A lot of people are confused about San Jose tax, as well as state and Federal taxes. We decided to answer some of our customer’s questions to help clear things up. I am a partner in a same-sex couple in San Jose. Is there a San Jose tax credit for me? Does anyone know what the deal is with taxes for same-sex (married) couples? ~From Jenna There is no special San Jose tax credit for same-sex couples. Nor would such a credit be issued at the municipal level of government, which primarily relies on property taxes. For a community property state such as California, we recommend you review the IRS Chief Counsel Memorandum on California Registered Domestic Partners. It is available here http://www.irs.gov/pub/irs-wd/1021050.pdf I highly recommend you consult with an enrolled agent before filing if you are in a California registered domestic partnership. I live in East San Jose and pay ridiculous taxes for my 340K two bedroom but my friend told me he has a buddy who lives in San Marco/riverfront in like a 35 million dollar home and they pay just 6K in San Jose tax how is that possible or even fair? ~ From Hugo I don’t know whether or not the individual you mentioned actually pays property taxes (what you referred to as the “San Jose tax”) that low. However, it is possible. That discrepancy is most likely due to California’s proposition 13, and is being recognized all across the state as a potential issue. Proposition 13 freezes property taxes, which especially benefits older homes. It also limits how much property taxes can be raised on a home to only 2 percent each year (unless the home is sold or repossessed). A lot of Californians now feel this proposition is unfair, as it allows some of the state’s wealthiest elite to maintain vast properties with minimal taxes. It also overwhelmingly disfavors new buyers. Additionally, if these old-school elite choose to buy another home of equal or greater value, they still only have to pay the same low San Jose tax rate they paid at the old address. How do companies like Intel and Google avoid paying the San Jose tax? ~ From Tranh Google is actually based in Mountain View. Moreover, companies like Intel and Google don’t actually owe that much in municipal tax to begin with. Intel, for example, only owes the city $150.00 + $18.00 per employee, per year. In addition to that, they owe some fees for their licenses and property taxes. That’s nothing compared to what they are supposed to be paying in federal taxes. However, companies like Google and Intel make a lot of their money on the international market. So even though they are a domestic company, they find increasingly complicated ways to clear their revenue through more tax-friendly nations such as Ireland, rather than letting Uncle Sam take his share. President Obama has expressed concern over this loophole in the system, and we may see a change in policy around it soon. Some analysts speculate that the transfer of intangible assets will be taxed more stringently, even if they try to transfer them to low-tax countries such as Ireland. If you have more questions about San Jose Tax, or another type of tax, click here. |
