The California Association of REALTORS® strongly OPPOSES Assembly Bill 1771, authored by Assembly member Chris Ward, which attacks private property rights by imposing high taxes on the gain from selling a home or other property -- diminishing wealth opportunities, the freedom to move or relocate, and the housing supply.
AB 1771 proposes an unprecedented tax on the sale of a home in the first seven years after purchase. If the home was sold within the first three years, the tax would impose a punitive 25% tax!!! AB 1771 proposes to punish homeowners for simply deciding to move, all while the State of California enjoys a $45.7 billion surplus this year! AB 1771 seeks to raise taxes on our state’s diverse communities as they are entering the housing market and securing home ownership opportunities.
Specifically, AB 1771 would result in:
- increased taxes on homeowners;
- higher prices due to a reduced supply of homes as investors hold on to properties and homeowners are trapped in their homes;
- limited wealth-building opportunities for California’s new and more diverse population of homeowners.
Watch out real estate agents in the 49 other States; this could be infectious and become an issue in your State.
I have written and called my California State representatives to express my disagreement with this legislation. If you are a California resident, I hope you will too!
To learn who represents you, click here.
The long reach of politicians into our wallets must stop here!