Posted by: phillipsre | April 2, 2013

Inslee’s Budget Proposal Effects Long Term Rental Owners

money_home1Last week, Governor Jay Inslee released his budget proposal and tax breaks plan. The proposal has called for $1.2 billion in new funding for schools over the next two years and paying for it by closing 11 different tax breaks and making permanent a business and occupation tax and a beer tax set to expire this year. This repeal of B&O tax exemption effects long-term rental of commercial real estate. Repeal of the exemption would enact a new B&O tax at the service and other activities rate on income derived from all long-term (30 days or more) rentals of commercial real estate, including: Rental of Apartments, commercial buildings, mini-storage facilities, and leased departments.

Our friends at RHA have put together a letter and some additional information for Rental Owners to use in responding to these proposals as they will have a lasting impact on owners and tenants. Increasing taxes on the rental housing industry would only serve to increase costs and reduce affordability to tenants.

Please consider sending emails and making phone calls to your legislators and the Governor’s office, and encourage anyone else you know to do the same in opposing the creation of a B&O tax on rental income. Read more about RHA’s stand on the B&O tax and feel free to copy the letter they have provided to send.

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