That normally would be a capital gains tax. What is the state long term and short term capital gains rate?
In addition, if the flippers don’t exist, then homeowners will buy the house but fix it up slower reducing income for remodelers and property tax flows.
Fine by me. I’ve rebuilt 2 and still own them after 4+ years. Might even raise my value as it takes more of them off the market. Californians get what they deserve.
There is no California capital gains tax... It’s just treated as income. 10% ish max.