Home>Articles>Gov. Newsom’s ‘Chronically Delinquent’ Property Taxes and Unreported Income Must Be Investigated

Governor Gavin Newsom. (Photo: Kevin Sanders for California Globe)

Gov. Newsom’s ‘Chronically Delinquent’ Property Taxes and Unreported Income Must Be Investigated

Dubious $3.7 million home deal: Has this elitist governor promoted himself above the law?

By Katy Grimes, August 3, 2020 12:16 pm

The United States is a Constitutional Republic which means we are a government without a king, accountable to the people and governed by the “rule of law,” in which the law is applied equally to all citizens.

Or so we’ve always been told.

America’s political elite who deem themselves royalty, and live accordingly, are the same politicians who have been keeping their citizens in states under total lockdown for the purpose of destroying the economy, they mandate the wearing of face masks which they themselves do not wear, they prohibit travel to second homes and family cabins while traveling themselves, are keeping schools locked down, attend funerals while our dead cannot be mourned in a service, and they are thwarting the use of hydroxychloroquine – a known prophylaxis (prevention) to coronavirus, and a successful cure… all to try to force President Donald Trump out of office one way or another.

California Gov. Gavin Newsom, one of the most Aristocratic, elite politicians to come along, has some serious, quite large, tax delinquency issues, according to RedState:

“Gov. Gavin Newsom (D). He personally owns more than $6 million in real estate in the Golden State, giving him a massive property tax bill every year. And even though he received $2,695,000 cash in late January from Union Bank as a cash-out refinance on his $3.7 million Sacramento County mansion, he didn’t turn around and pay property taxes due in either Sacramento County or Marin County. In fact, at this moment his Kentfield estate is listed as ‘delinquent’ on the Marin County Tax Collector’s website.”

The Governor, who is pushing numerous tax increases on the peasant taxpayers of the state, doesn’t pay his? Try not paying your property taxes and see how the government responds.

As the Los Angeles Times reported in 2018:

“Gavin Newsom wasn’t born rich, but he was born connected — and those alliances have paid handsome dividends throughout his career.

A coterie of San Francisco’s wealthiest families has backed him at every step of his political rise, which in November could lead next to his election as governor of California.

Among those patrons are the Gettys, the Pritzkers and the Fishers, whose families made their respective fortunes in oil, hotels and fashion.”

The peasant taxpayers are repeatedly told by this governor and the compliant media that they aren’t paying their “fair share” of residential and commercial property taxes, if they are fortunate enough to own their home, or the building and property that is home to their businesses.

Redstate reported:

“Newsom received a $3.7 million estate from an LLC owned by his cousin then, a few months later took out a $2.695 million (tax-free) cash-out mortgage on it — and didn’t report the gift on any of his financial disclosure forms.”

If any other state legislative staffer or elected Assembly member or Senator failed to report income or even a $51 dinner with a donor, the Fair Political Practices Commission would investigate and fine the individual.

So for Newsom to not report the $2.695 million tax-free cash out mortgage deal is just illegal. Who in Marin County or Sacramento County is willing to challenge the governor over his delinquent taxes, or unreported income?

Where is the U.S. Attorney’s office or Attorney General’s investigation into Newsom? Because an investigation needs to be opened.

As Nancy Pelosi constantly reminds us “no one is above the law,” “not even the President.”

Not even the Governor is above the law. Or so we are told.

“This is the third tax bill in a row the Newsoms have let slide to ‘delinquent’ status,” Redstate reports.

“Gov. Newsom signed an Executive Order in May 2020, as Bronson Stocking at our sister site Townhall noted, suspending the requirement for county tax collectors to impose penalties, interest, and other costs on property tax scofflaws through May 1, 2021, if the taxes weren’t already delinquent as of March 4, 2020, and if property owner ‘timely files a claim for relief’ with the tax collector.”

This sounds as if Gavin Newsom is signing Executive Orders to benefit his own financial condition – as a royal would do. We wonder if Gavin Newsom will file such a claim for relief of his delinquent property taxes. But that still doesn’t address his unreported outside income.

Meanwhile, Gavin Newsom has kept the state under his original State of Emergency order deliberately to make the Legislature irrelevant (which Democrat Assembly and Senate leaders have allowed), and more importantly, to kill the California economy, which in turn severely harms the U.S. economy.

Newsom comes from San Francisco, as does Nancy Pelosi. It’s not a stretch to believe that Pelosi is sending orders to Newsom to keep California closed, with promises of future political opportunities. It’s no secret that Newsom wants to run for/be President.

Rumors have Newsom and his family traveling between Sacramento and Montana during the coronavirus lockdown, for visits to his wife’s family’s ranch. We know this could be true because the Associated Press and Politifact have vehemently denied it.

The Montana Daily Gazette reported:

According to numerous news reports, “California’s Democrat Governor Gavin Newsom has allegedly been spotted by multiple witnesses claiming that he spent the weekend hiding out at his wife’s family ranch in Stevensville, Montana, as the rest of his state is on lockdown and not allowed to travel.”

“As of right now, Newsom’s California office has denied the accusation he is currently in Montana, but his office’s wording has been vague enough to have some insisting that he briefly visited the Big Sky State of fellow Democrat Governor Steve Bullock over the weekend.”

Notably, all media denials “only sourced Governor Newsom’s office and taken the California Governor for his office’s word that he is currently in California ‘where he has been since the start of the COVID-19 pandemic.'”

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40 thoughts on “Gov. Newsom’s ‘Chronically Delinquent’ Property Taxes and Unreported Income Must Be Investigated

  1. It’s called Money Laundering….Don’t forget the billion dollar Chinese masks deal……Money laundering…..He represents China over the USA. Newsom, Pelosi, Waters, Schimt, Brown, and others need to be arrested before the election….RecallGavin2020.com…. My district only needed 7,000 signatures done in a week…..Stand up against this tyrant….

    1. He not only did the 1.5 billion mask purchase for defective masks, he only got 2 million refund . Two million out of 1.5 billion is nothing BUT he just purchased more masks from the Same Chinese company even though there are companies in California and the US he could purchase from. ????????

      1. I’d like to know how in the hell can Newsom spend our money on masks from china when they are being made in America. That just doesn’t make sense to me

    2. It is money laundering and he needs to be stopped!! He is coveting California’s money and taxing us for erroneous reasons. The IRS needs to go after California’s politicians like Newsome, Pelosi and Steinberg!! I am sick of this damn political double standard!! Do something IRS and D.A, we the California citizens are sick of this!!!

      1. Nobody will do a damn thing now. We no longer have a United States of America thanks to those cheating, lying, stealing Demorats and the republicans that turned their backs on the people and our Country. Theirs always been a set of laws for politicians and a set for us little people. I wonder what it cost China and the Demorats to pay those republicans off and all the people involved in the county? I know damn well he didn’t get more votes than any other president in history. That’s a lie. It was rigged and stolen. That’s why Biden never went out to campaign he didn’t have to he had the whole election rigged in his favor. Nothing will ever be done to Hunter or any of Joe’s family for the billions of tax free money they made. Or any of the other crooked deals they did while we struggle to figure how to feed our family. Oh Biden was a good pick. And you people complain about what happened in DC on January 6th? You’re all so one sided no wonder you took the win away from Trump. You all over look what happened in the cities with Antifa that Biden allowed to go on and ENCOURGED but nobody’s thinking bad of that. They raped, murdered, terrorized innocent people, burned buildings, looted stores, buildings, house invasions, you also set up road blocks so those poor innocent people were locked in their with that mob yet you lying scumbags sitting up there in office try to make your self’s look so good and innocent you make me sick. You know you stoled the race because there’s no way you could have won it on your own. Kamala why don’t you just come clean and tell the people you’re not really black because you’re not so just stop the games. You Demorats will do anything to get what you want no matter how illegal it is and never think twice about it. I hope you all burn in hell and all you rotten Republicans that chicken out and turned your back on our country I hope you’re ball’s fall off oh wait don’t worry you have none to fall off. In the end you ALL have to ANDWER TO GOD!!!

  2. I sincerely hope there WILL be an investigation into Gruesome’s tax delinquencies and unreported income.
    It’s an absolute outrage. Beyond an outrage. The latest of MANY we’ve been subjected to.

  3. How can you close on a mortgage without paying the property taxes? I have never experienced that particular benefit. Is there going to be a tax sale on the delinquent property? I would like to bid $1.

  4. Gavin Newsome is part of the San Francisco Democrat Machine that includes Nancy Pelosi and Slippery Wllly Brown who took millions of dollars from big tobacco and alcohol. It was even exposed in 7 pages of the San Francisco Examiner Newspaper and the stupid voters still voted for him for Mayor. I used to see this group of thugs eating in a Restaurant in Chinatown. It’s the Democrat Machine like in Boss Tweed of New York in the early 20th century. It’s the political Mafia of San Francisco

  5. Good job reporting- you are a rarity- truthful and bold! One detail I didn’t notice but you may have covered… Newsome was not a member of the LLC which is the only way he could or can receive that property transferred to him tax free. Also there was an approximate 5K waived transfer fee…

      1. Jeff,

        yes there is an annual limit of $500, and politicians must file quarterly campaign disclosure reports, and file other forms of income reports.

    1. You are correct Dan. There are no filings showing him as ever being a part of the LLC. And the waived transfer fee would only have applied if he was.

  6. Good job reporting- you are a rarity- truthful and bold! One detail I didn’t notice but you may have covered… Newsome was not a member of the LLC which is the only way he could or can receive that property transferred to him tax free. Also there was an approximate 5K waived transfer fee…

  7. Only at “California Globe” will you find this kind of outstanding reporting. Thank you.

  8. Thank you for your report. A couple of points of clarification:
    1. If Newsom’s cousin gifted him a $3.7 Million home, the cousin is required to declare the gift on the cousin’s Federal gift tax return and, if any gift tax is actually due, the cousin is responsible to pay the tax. (In 2020, each taxpayer has a lifetime gift exemption amount equal to $11.58 Million, so while a gift tax return is required, it is not clear that the cousin will actually owe gift tax.
    2. Borrowed money is not income to the borrower. That’s true if a homeowner refinances or secures a HELOC. Repayment of the loan is not deductible for income tax purposes, so the repayment is made with after-tax dollars. Interest on the loan may be deductible or partially deductible.

  9. Once again Katy Grimes…excellent article! Keep up the great reporting and exposing Newsom’s total hypocrisy.

  10. Question not comment, is there any truth to the rumor that Gavin Newsom is somehow related to Nancy Pelosi? My wife insists that Newsom is Pelosi’s nephew.

    1. Gilberto, not legally her nephew. But there is a slightly complex mixture of current and former marital Bonds that connect their families. That’s my understanding.

  11. One of the Pelosi’s sons, Paul, married Nancy D’Alesandro (now Nancy Pelosi), who went into politics and has now reclaimed the speakership of the House of Representatives. Another Pelosi son married William Newsom’s daughter, Barbara. Until they divorced, that made Nancy Pelosi something like an aunt by marriage to Gavin Newsom (Nancy Pelosi’s brother-in-law was Gavin Newsom’s uncle).

  12. Good Job reporting, this is quite a story.
    Couple of things:

    1) I don’t believe the CA property transfer tax would apply in the case of gifting CA property. There is an exclusion for that. Please double-check me on this and let me know if I’m incorrect.

    2) The weak link in this whole thing is Mr. Scherer (Newsome’s cousin). He would have likely been required to file IRS Form 709 on the gift (Sacramento house) to the Newsoms. No tax would have been owed because the lifetime exclusion is much higher than $3.7 million, but Scherer would have still had to file it. He may have major tax issues over this.

    3) If the IRS audits Mr. Scherer’s federal income taxes that should provide the trail to where the $3.7 million actually came from. Based on Newsom’s likely financial condition (property taxes regularly becoming delinquent) the narrative that the Newsomes had that much cash sitting around is simply not credible.

    4) It is very possible that the $3.7 million may have originated from non-legal means (bribery, money laundering, illegal campaign contributions, etc.) and that the Sacramento house is a front for it.

    Please keep us posted on this story. If Newsome is not following the law, it needs to be brought to light and he must be held accountable.

  13. Regardless of how the transfer took place, if newsom is not reporting the rental income he’s receiving from the residence, he needs his feet held to the fire.

  14. Agree. So instead of moving homeless to the burbs where we work hard and pay taxes , put them in 3.7 million mansion- surely big enough.

  15. So instead of sending the homeless to The Burbs where we work hard and pay taxes put them in the 3.7 million dollar mansion it should be big enough

  16. I’m a native Arizonan who went to undergraduate & graduate schools in Calif 50 yrs ago when it truly was The Golden State. Now we have tons of Californians moving here to escape the very rot they created there( bring their political stink with them). I always ask them “Why are you all doing the same things here that ruined your beautiful state there?” Usu get a blank stare in return! Hopefully wisdom , truth and common sense will prevail.

  17. Its October now. I wonder if he has paid his taxes. He recently demanded that only electric vehicles in California. This works out with the $1 billion he invested in the electric vehicle manufacturer BYD. They weren’t equipped to make masks but they’re making and selling electric buses and carscsll over the world. Great investment by Newsom. He’ll be able to pay his taxes soon.

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