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New Taxes for Real Estate Sales to help with affordable housing.

Believe it or not, Boston is in the thick of a housing crisis….an affordable housing crisis.  To remedy this, Boston City councilors have proposed some new taxes and fees on high-end real estate deals to help pay for more affordable housing. 

According to the Boston Globe, the new proposal includes a 6 percent tax on many commercial and residential sales over $2 million and then another “flipping” tax of up to 25 percent on properties that are sold twice in two years.  Councilors believe it could raise anywhere from $175 million to $350 million in just one year and help build much needed affordable housing.   

City Councilor Lydia Edwards is the new plan’s lead sponsor along with Councilor Kim Janey.  This proposal will be filed on Monday.  In order for it to go through, it would have to be signed by Mayor Marty Walsh and then sent to Beacon Hill as a home rule petition.  This process is going to be long and most likely controversial.  Developers and real estate groups will most likely be opposed to the proposal too. 

So we shall see.  This proposal will be interesting to follow! 

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About the Author

Maureen Dahill

Maureen Dahill is the editor of Caught in Southie and a lifelong resident of South Boston sometimes mistaken for a yuppie. Hockey mom, yoga enthusiast, lover of red wine and binge watching TV series. Mrs. Peter G. Follow her @MaureenCaught.

Comments

  1. All for the tax over $2M, but I think the flipping tax is too hefty. Capital gains taxes in general are pretty serious as is.

    A lot of old, dilapidated triple deckers will stay in poor condition if the tax is as high as 25%. Most people don’t have the equity, ability or time to buy something rundown and fix it up for themselves, especially a multifamily. Some people see flippers as thieves, but they’re really just improving the quality of a building & neighborhood for a return.

  2. NO TRUE, example: 119 G street, bought by “flippers” turned a 6 bedroom 3 baths THREE FAMILY into 12 BEDROOMS 3 baths..535 east 4th street trying to turn 3 bedtoom 3 bath THREE FAMILY into 11 BEDROOM 6 BATHS bought by ” flippers” Not adding PARKING!!! Essentually turning three family homes into GLORIFIED ROOMING HOUSES..low l ifes..

    • So someone was smart… saw an opportunity to make an old, extremely inefficient layout into an efficient layout that helps mitigate our housing crises by being able to house more people in the same amount of space.

      Your selfishness is shining through old timer. Time to share “your neighborhood.” Next time I park outside your house, I’ll be sure to knock on your door and ask to see if it’s ok with you.

  3. Lydia Edwards is a moron. Her tax proposal is social Darwinism at its best. Big developers should pay linkage funds to build affordable housing., not homeowners.Boston voters better wake up and start electing people with an IQ over 80.