On Jan 9 at the Gig Harbor Chamber of Commerce 26th LD Legislative sendoff meeting Michelle Caldier commented on Real Estate Excise Tax (REET) legislation passed last session. She complained that her constituents were being harmed by higher rates.
Yes, Washington State will see an increase in revenue for capital improvements (that benefit everyone - Streets, parks, sewers, etc) from a restructured excise tax that goes into effect on January 1, 2020.
However, it will now be a PROGRESSIVE-GRADUATED RATE rather than the old FLAT-REGRESSSIVE RATE.
Over 90% of the citizens of the 26th LD would see no increase, and some will see an actual decrease in Excise Tax paid IF THEY SELL THEIR HOME.
The old combined state and county tax rate was 1.78%. In 2020 REET will be collected progressively based on the sales price of your property. Under $500K it is reduced to (1.6%), $500,001 to $1,500,000 (1.78%) no change, 1,500,001 to 3,000,000 (2,75%) an increase and over $3,000,000,000 (3.00%) an increase.
THE TRUTH: Only if you sell your home
Valued $500k or less - you'll pay REDUCED RATE
Valued $500k to $1.5 million - you'll pay SAME RATE
The average price of homes in 26LD range from on the KP $350K, Port Orchard $370K, Kitsap County $400K and Gig Harbor $530K. The vast majority of homeowners in our area will not see any increase and some will actually benefit from these new progressive rates.
Only the sellers of million-dollar McMansions will see an increase if they sell their homes.
Michelle claiming her constituents will be harmed is either an uninformed disingenuous statement or her constituents are the ultra-wealthy who can surely afford to pay a little extra, considering the rapid rise in value of home values in this hot real estate market.
Al Franken wrote a book about politicians titled “Lies and the Lying Liars Who Tell Them”
We need a legislator in Olympia who will look after the average Joe Taxpayer and not cater to the upper crust.
Michelle Caldier's Record:
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