California Budget Crisis, a question?

[126coupe]

I realize the state leases properties for DMV's, EDD's, Highway Patrol ect.
Do these landlords get IOU's too instead of rent being paid, until a budget is passed?

[sammyg2]

Dunno. Prolly.

[Porsche-O-Phile]

Better. They get their taxes raised and then get handed an IOU back on their own money.

I wish I was kidding and just being a grouchy cynic, but that actually IS how it works.

[126coupe]

Originally Posted by Porsche-O-Phile

Better. They get their taxes raised and then get handed an IOU back on their own money.

I wish I was kidding and just being a grouchy cynic, but that actually IS how it works.

so IOU's for landlord's? Jeff do you have inside information?
I am not on speaking terms with my Father, he owns several EDD buildings, a DMV.

[Hugh R]

Maybe you should up your deductions for 2009. That way you'll owe them a little money instead. The State would be screwed if everyone did this. I THINK if your year end tax liability is less than 10% of what you owe, or you had more withheld than the previous year you become penalty proof.

[Zeke]

I'm sure your father and his bank can weather this. And, if they give him script, isn't that a violation of the lease terms? Throw the bums out.

[Zeke]

Hugh, you're a conniving man.

[126coupe]

Originally Posted by milt

I'm sure your father and his bank can weather this. And, if they give him script, isn't that a violation of the lease terms? Throw the bums out.

The State signs only short term leases 3-4 years.
The "budget" deal is in the leases.
2 of his buildings have been occupied since 1966.
These type of tenants are great. Would not any big retail tenants in these times.
Circuit City, Linens and things, BBQ Galore, the list is endless.
I used to have Warehouse Records, they filed a Chapter 11 on me, the court reduced the rent by 50% Warehouse eventually went belly=up.
I have The County of Riverside as a tenant, great payers, but kinda a PIA.