Tax on expensive real estate sales in Washington is not happening

[Yo_Mama_Been_Loggin]

A tax on real estate sales in Washington over $3 million did not pass in this year’s state legislative session, dealing a blow to advocates who had hoped for a permanent funding stream for affordable housing.

House Bill 2276 would have added the tax beginning in 2026. Revenue from it, about $130 million a year, would have funded housing for low-income people, people with developmental disabilities and people with mental and behavioral health needs.

The 1% real estate transfer tax would have applied to any portion of a sale price over $3,025,000. The bill would have also expanded the lowest tier of the state’s real estate excise tax – which currently covers properties sold at $525,000 or less – to include properties sold at $750,000 or less. This would’ve left most people selling homes in Washington with no change in their tax bill or a decrease.

After passing out of a House committee last month, the proposal never made it to a vote on the floor or to the Senate.

https://washingtonstatestandard.com/2024/03/11/tax-on-expensive-real-estate-sales-in-washington-wont-happen-this-year/

[dutch777]

1. The bill could be revised to get passage. The concern about apartment complex cost given high rents is understandable.

Although not sure that effect would really be seen but not surprised the real estate class brought it up. I lived in WA until just recently and if I recall capital gains are not taxed and the idea is as unpopular as income taxes in the state. But in the case of apartments that are investments different than single family residences, the capital gains route could address the raising rents concern as it would be taken from the seller and not the buyer and only if base value increased. I like the thinking in the bill although I really think there should be a national transfer tax on any large asset sale, above $3 mil or whatever, of some small percentage of 1% and it should go to pay down the deficit. The millionaires and billionaires and large corporations would not get hurt and in few instances would the cost be a pass thru if targeted correctly. The states could do similar or feds could share back to the states via block grants based on how much of the total tax was by each individual state.