🏠💰💸 Lawa’z Considah Tax Increase Fo’ Million-Dolla Propaties As Session Nears End
OLYMPIA – Da session fo’ da lawmakas in Washington state stay coming to an end, but da kine lawmakas stay thinking about some tax bills fo’ da final days. One bill dat stay getting all da attention would raise da tax on sales of multimillion-dollar properties. Da House Finance Committee stay all good with dis bill on Friday. Da vote stay showing dat da Democratic majority stay considering raising taxes fo’ increase spending on low-income housing fo’ address da homelessness crisis in da state.
Da lawmakers also stay thinking about raising da cap on da growth of property tax collections dat stay in place fo’ decades. Dis cap stay at 1%, and local government leaders stay saying dat it’s constraining spending on public services. Some legislators stay advocating fo’ a wealth tax on da state’s richest residents as well. But, still not sure if any of da tax proposals going make it into da final budget package dat lawmakers gotta adopt before da scheduled adjournment on April 23.
Da bill dat stay showing signs of life and moving forward stay House Bill 1628. Dis bill would raise da state’s real estate excise tax on higher-end property sales, and dis stay getting da attention. Da proposal stay showing dat it could help wit da housing crisis in da state, but some Republicans stay criticizing da bill as misguided, saying it would only raise housing costs fo’ most people. But, da Democrats stay thinking dat dis could be da tool they need fo’ address da housing issue.
🏘️💰💸 Washington state stay already having a tiered excise tax on homes and other property sales, usually paid by da seller. Da first $525,000 of da selling price stay taxed at 1.1%. Da rate stay going up at three more levels, topping out at 3% fo’ da portion of da sale price above $3,025,000. Da House Bill 1628 would raise da rate on dat top tier of properties to 3.5%, except fo’ commercial properties, which wouldn’t be taxed at da higher rate until 2027. Da proposal would also widen eligibility fo’ da lowest tax rate, requiring da first $750,000 of da selling price to be taxed at 1.1%.
🌆🌉🏢 In addition, cities and counties would be allowed to impose an additional 0.25% local real estate excise tax. Da tax, if passed, would form a cornerstone of da Legislature’s push dis year to tackle da state’s housing shortage. Da legislation would raise an estimated $22 million in da upcoming two-year budget fo’ da state and $177 million by da 2025-27 biennium.
🏡🏘️💸 “In dis moment, we get one real serious crisis wit housing,” said Rep. April Berg, D-Mill Creek, da Finance Committee chair. “And I believe dis is one tool dat we can use as one state fo’ address um.” Republicans on da House Finance Committee criticized da proposal, but it still stay advancing in da vote.
🏦💰💳 Da lawmakas also stay looking at rolling back da 1% cap on da growth of property tax collections, which stay causing some constraining spending on public services. Da lawmakers stay looking at creating more space fo’ spending and some stay advocating fo’ a wealth tax on da state’s richest residents.
Da tax proposals stay causing some back and forth between da parties, but da lawmakers stay looking fo’ solutions fo’ da state’s housing crisis.
NOW IN ENGLISH
🏠💰💸 Lawmakers Consider Tax Increase for Million-Dollar Properties as Session Nears End
OLYMPIA – The session for the lawmakers in Washington state is coming to an end, but they are still thinking about some tax bills for the final days. One bill that is getting all the attention would raise the tax on sales of multimillion-dollar properties. The House Finance Committee is all good with this bill on Friday. The vote is showing that the Democratic majority is considering raising taxes to increase spending on low-income housing to address the homelessness crisis in the state.
The lawmakers are also thinking about raising the cap on the growth of property tax collections that has been in place for decades. This cap is at 1%, and local government leaders are saying that it’s constraining spending on public services. Some legislators are advocating for a wealth tax on the state’s richest residents as well. But, it’s still not sure if any of the tax proposals are going to make it into the final budget package that lawmakers have to adopt before the scheduled adjournment on April 23.
The bill that is showing signs of life and moving forward is House Bill 1628. This bill would raise the state’s real estate excise tax on higher-end property sales, and this is getting the attention. The proposal is showing that it could help with the housing crisis in the state, but some Republicans are criticizing the bill as misguided, saying it would only raise housing costs for most people. But, the Democrats are thinking that this could be the tool they need to address the housing issue.
🏘️💰💸 Washington state already has a tiered excise tax on homes and other property sales, usually paid by the seller. The first $525,000 of the selling price is taxed at 1.1%. The rate goes up at three more levels, topping out at 3% for the portion of the sale price above $3,025,000. House Bill 1628 would raise the rate on that top tier of properties to 3.5%, except for commercial properties, which wouldn’t be taxed at the higher rate until 2027. The proposal would also widen eligibility for the lowest tax rate, requiring the first $750,000 of the selling price to be taxed at 1.1%.
🌆🌉🏢 In addition, cities and counties would be allowed to impose an additional 0.25% local real estate excise tax. The tax, if passed, would form a cornerstone of the Legislature’s push this year to tackle the state’s housing shortage. The legislation would raise an estimated $22 million in the upcoming two-year budget for the state and $177 million by the 2025-27 biennium.
🏡🏘️💸 “In this moment, we have a real serious crisis with housing,” said Rep. April Berg, D-Mill Creek, the Finance Committee chair. “And I believe this is one tool that we can use as one state to address it.” Republicans on the House Finance Committee criticized the proposal, but it is still advancing in the vote.
🏦💰💳 The lawmakers are also looking at rolling back the 1% cap on the growth of property tax collections, which is causing some constraining spending on public services. The lawmakers are looking at creating more space for spending, and some are advocating for a wealth tax on the state’s richest residents.
The tax proposals are causing some back and forth between the parties, but the lawmakers are looking for solutions for the state’s housing crisis.
