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224 pages, Hardcover
Published October 16, 2018
“It’s one reason why the proportion of the state’s properties that change hands each year fell from 16 percent in 1977 to less than 6 in 2014,” writes Henry Grabar for Slate magazine’s Moneybox blog. That’s why it’s always a sellers market in California.
It’s also why many longtime California homeowners are opposed to new housing construction. Those 1978 voters effectively snatched the dream of homeownership away from their kids. Building fewer houses than people demand drives up prices. That’s just basic economics.
The law also promotes land hoarding. In California, it’s extremely cheap to keep long-held land vacant, even if it has become extremely valuable. In Texas, however, you’re more likely to sell vacant land, if for no other reason than to avoid paying escalating taxes on something you’re not using.
In June 2013, the Texas Legislature passed Texas House Bill 1223, which provides a sales-and-use tax exemption on equipment purchases for data centers of at least one hundred thousand square feet that invest $200 million over five years and create at least twenty full-time permanent jobs paying 120 percent of a county’s average weekly wage. With the law, data centers no longer have to pay sales tax every time they refresh equipment, which major data centers typically do every three or four years.