Real estate agents continue to make more sales to Californians seeking Nevada residency due to Proposition 30 tax increases implemented this year. Lake Tahoe’s Nevada side in particular is seeing a great deal of real estate activity.
Proposition 30 increased income taxes for people making over $250,000 a year. Nevada residency is a favorable alternative for tax payers, as Nevada has no state income tax and Proposition 30 is set to be in effect for seven years.
“It really started at the end of November,” said Lexi Cerretti, an agent of Sierra Sotheby’s International Realty. “Right after it passed, some of these really high-net-worth individuals were saying, ‘That’s the last straw,'” she said.
Cerretti attributes at least three multimillion-dollar homes sales this year to Proposition 30. “I’m working with another lakefront buyer now who says that was it, they’re not taking another penny of his money,” Cerretti said.