— from Cathy Ferran —
I would like to add my support for Proposition 1 on this November’s ballot – aka the small (.05%) real estate excise tax (REET) – which will directly support affordable housing in our county. When I moved here 27+ years ago it was hard to find affordable housing, and it still is today.
OPAL and other housing non-profits have been carrying a burden that has become too large for them to handle alone. Now it’s time for the citizenry of this county to take some responsibility and enact legislation addressing this issue.
I appreciate the efforts of those across this county who worked hard to come up with an equitable solution to the problem. Asking for new buyers to pay a small tax so the people that work here, providing the lifestyle we so appreciate, can afford to live here strikes me as a smart solution to a long-standing problem. Vote YES on Proposition 1.
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Just to be clear….
In San Juan County we have a 1.5% REET and 1.28% REET from the State.
Isn’t the proposed additional rate 0.5%? Not 0.05%?
If it is 0.5%, when you add them all up, we will be at 3.28%. The next highest rate in Washington (as of Jan 1, 2018) was 1.78%
If affordability is the issue, just how many of these is enough?
Excise tax is 1.78% of the gross sale price (1.28% Washington State, 0.50% San Juan County). If sale is located within the city limits of Friday Harbor, local excise tax of 0.50% is collected for the Town of Friday Harbor making the total tax 1.78%. Which is paid by the seller.
The new REET.5% will be paid by the buyer.
Neither buyer, nor seller, will pay 3.28%
We need to be sure what the total really here. I am not sure your are correct.
According to the state, SCJ is at 2.78% now. That includes local and state REET. So adding 0.5% seems to me to be 3.28%. Please take a look at https://dor.wa.gov/legacy/Docs/forms/RealEstExcsTx/RealExTxRates.pdf. This is where I am getting my numbers.
How would the buyer pay? They may be assessed the 0.5%. Won’t they take this into account into consideration and pay market price, not market plus all the REET’s?
The seller in the end winds up with less money. The buyer pays market price regardless.
So, I believe the current 2.78 is 1.78 paid by seller (the REET described above); and 1% (Land Bank REET) paid by buyer.
Tom,
I believe you are correct with your 3.28% number in total additive expense (split non-proportionally between buyer and seller) if the new tax is approved. Key point being that the newly proposed component is .5%.