A sign announces newly built homes in Sudbury, Ma., in March 2023. Cities and states are increasingly considering so-called mansion taxes to fund new housing or homeless projects. But opponents say adding new taxes will drive up the cost of housing. Peter Morgan/The Associated Press
Read more Stateline coverage of how communities across the country are trying to create more affordable housing.
Washington state lawmakers last year dedicated a record $400 million to the state’s Housing Trust Fund, which distributes loans and grants to create affordable housing.
But that was only a one-time infusion, said Democratic state Rep. April Berg.
“What we heard from communities is that we need to know, year over year, that we can actually start doing projects and money will be flowing,” she said.
To create a long-term revenue stream, Berg has proposed raising taxes on the most expensive real estate transactions, an increasing nationwide trend sometimes dubbed a “mansion tax.”
Her legislation would increase the state’s tax on property sales above $3 million while decreasing the tax rate for less expensive sales. The change is estimated to create an additional $300 million in revenue each biennium, said Berg, chair of the House Finance Committee.