Some of Hollywood's rich and famous, such as Mark Wahlberg and Dean Cain, remain in Los Angeles and seek out mansions on the edge of the Las Vegas casino district.
So is Sin City popular among wealthy Californians looking for a change? surely.
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Business Insider recently reported on this phenomenon, stating that people from other states choose Las Vegas for its low cost of living, low taxes, abundance of outdoor activities outside the city, and proximity to a wide variety of attractive and simple residential neighborhoods. He said that there are many things that can be mentioned. Numerous entertainment options.
Richard Katz, a 66-year-old optometrist who has lived in Virginia for more than 20 years, also mentioned the weather. “Texas is not our thing at all. Colorado has too much snow. Reno has too much snow. Seattle has too many hills, and in California everyone is moving from California to be here,” he said. Told. “It doesn't snow, it doesn't blow, and we don't mow the grass.”
Recent reports and statistics suggest that wealthy people are leaving Cali in dramatically greater numbers. For example, the nonprofit Tax Foundation noted that between 2020 and 2021, there were about 27,300 fewer tax returns filed in California with adjusted gross income of at least $200,000.
Meanwhile, Los Angeles and San Francisco had the highest number of homebuyers considering moving to Las Vegas from April 2023 to June 2023, according to Redfin.
The number of new luxury homes sold in Las Vegas in the first half of 2023 was a record high at 267, triple the number in 2018, according to an analysis of homebuilder surveys cited by the Las Vegas Review-Journal. .
“…in my range of $4 million and above, there are still a lot of people who are willing to buy because they're not affected by interest rates right now. They were already looking to put a big down payment on a home, or They're coming out of California and have a lot of equity in the homes they've sold there, so the interest rates are acceptable,” said luxury brand owner Dan Colletti. Custom builder Sun West Custom Homes, Las Vegas Review Journal.
Learn more about three big reasons why wealthy Californians are more tempted than ever to leave their mansions behind.
tax
There are only nine states in the United States that have no income tax, and Nevada is one of them. Compare this to California. In California, the highest wage earner is taxed at 14.4%, the highest rate in the nation. Nevada's average combined state and local sales tax rate is 8.23%, slightly lower than the Golden State's 8.82%.
So if you live in California and make $10 million, you could end up with the state for $1.44 million. Or you could take the action across the state line to the Nevada side and not have to worry about bupkissing on that front.
In particular, there's another tax that permeates the roots of Los Angeles County's wealthy. This is the so-called “mansion tax.” As of 2023, real estate sales over $5 million will subject the seller to his 4% tax. Above $10 million, the interest rate jumps to 5.5%. Perhaps paying that tax would deter sales, but it could also be a last resort for Californians taxed to death.
read more: Here's how much the average 60-year-old American has saved for retirement. How is your stay at home?
Quality of life
While summer F1 racing events may wreak havoc on local roads, Las Vegas doesn't have the kind of traffic jams that test your nerves to drive 24 hours a day in Los Angeles. Wahlberg also said Las Vegas is a great place to raise a family. Really.
“When you have Las Vegas, people automatically think, 'Oh, it's the Strip,'” the actor told TODAY.com. “but [in] Nevada has great communities. I live in a great community with great schools that are truly faith-based. Las Vegas has much more to offer than just the Strip. ”
Room to grow (show) business
According to the Tax Foundation, when comparing California and Nevada as business-friendly states, there is little competition in terms of tax structure. The former ranks him 48th on the 2024 State Business Tax Climate Index, while Nevada ranks her 7th.
It's no wonder that Las Vegas, just a 90-minute flight from Los Angeles, has a real chance of becoming a film production hub. Last year, Wahlberg appeared in the Nevada Legislature in support of SB 496, the Nevada Movie Studio Infrastructure Act. Sony Pictures Entertainment, Virtua Development, and Howard Hughes Co. also lobbied for it.
The bill would have granted $190 million in annual tax credits, but it did not come to a vote. However, multiple sources told Variety that “there is a strong possibility that this bill or a similar bill will be passed when the next legislative session convenes in 2025.”
Imagine that. We're betting Wahlberg's colleagues are already doing that. Shoot blockbuster movies by day, craps by night, and get home without fickle bumper-to-bumper traffic or big tax bills arriving in your mailbox.
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