Proposed Tax on Home Sales Runs into Major Opposition from SDAR

A proposed tax on home sales unveiled to the San Diego community last week is running into major opposition -- particular from the Greater San Diego Association of REALTORS®. The California Housing Speculation Act (Assembly Bill 1771) is aimed at curtailing investor activity, but opponents say it would affect regular homeowners just the same. Under the proposal, if a home sale happens within three years of purchase, there would be a 25% levy on the profit; after three years, the levy would reduce by 5% each year thereafter. 

“It’s really going to put a damper on our critically low inventory that we already have,” said SDAR President Chris Anderson, adding that people have to sell their homes on short notice for all kinds of reasons and sometimes under unfortunate circumstances. To watch a CBS8 report on the issues surrounding the bill, click here.