Community Letter: Correcting 38th District misinformation

My opponent would like you to think he is defending the average household, but he’s actually criticizing bills that make the top 0.5% of income earners (over $1 million/year) and real estate investors pay their fair share in taxes

Here are the bills that he criticized and what they actually do: (I’m copy-pasting the Legislative Summary of each bill, word-for-word, from rilegislature.gov, with My Note for more context).

Rhode Island Development Impact Fee Act - Allows impact fees to be imposed on commercial properties to subsidize the creation of affordable housing projects within the municipality, at the discretion of the appropriate governmental agency

Link here

My Note: My opponent claimed that this is about raising commercial property taxes, but it’s not. The bill enables a municipality, if they choose to, to include a one-time impact fee on new commercial developments (in other states it’s known as a linkage fee), similar to other impact fees for water or sewage. Nothing in the bill says 10%; the impact fee would be up to the town and it should be reasonably tied to the demand for affordable housing (often for new workers) that would be created by a new large-scale commercial development.

Amends the capital gains tax rates and holding period from 5 years to 1 year. Imposes a non-owner-occupied tax on homes assessed at more than $1,000,000

Link Here

My Note: The non-owner-occupied tax is meant to disincentivize real estate investors or people who are only using it as a 2nd or 3rd home; this has been proposed for years and is also known as the “Taylor Swift” tax.

Creates an additional Rhode Island personal income surtax of 3% on taxable income over $1,000,000, with the existing three-bracket personal income tax structure remaining in place

Link Here

My note: Massachusetts passed a similar tax a year ago and brought in a lot of funding for education and higher education. Many other states have similar tax structures.

Creates new tax on gains from sale or exchange of real property held for short periods of time, 6 years or less, establishes a comprehensive framework to calculate and implement enforcement and provides imprisonment and/or fines for those who evade taxes.

Link Here

My Note: A tax on short-term capital gains is meant to discourage real estate “house flippers” – investors who buy a property (often in cash to out-compete regular homebuyers) then renovate and sell for a profit.

Here is my longer response in the WesterlySun:

Over the past two years, it’s been an honor to serve the residents of Westerly, Charlestown, and South Kingstown. When I canvass from door to door to hear residents’ priorities, people often tell me of their concern that their children can’t afford to start a family in South County, even with a decent-paying job. I have taken their concerns to the RI State House and consistently supported bills to help first-time homebuyers or established nonprofit housing providers compete in a fierce Rhode Island real estate marketplace.

As the Housing Network of RI outlines, Rhode Island is experiencing a housing market in which investors with deep pockets have an advantage. Such investors often buy multifamily housing or apartment buildings to renovate and sell for a profit (“house flipping”) or raise rents, forcing moderate-income families and seniors out. Some investors also buy single-family houses in South County to turn them into short-term seasonal rentals.

One solution, the Community Opportunity to Purchase Act (COPA), H-5749– is described at length in my March 2023 newsletter (all of my newsletters can be found on my website at victoria4ri.com). It proposes legislation like that used in other communities nationwide to address these current housing market challenges.

The 2024 Community Opportunity to Purchase Act bill (S-2631) (COPA Bill) would give the right of first offer to qualified nonprofit housing providers (not government entities, as my opponent erroneously stated) to purchase specific (generally, five units or more) multifamily residential properties at market prices if the properties are for sale. There is no one simple solution to our housing crisis. The COPA Bill provides one additional tool to preserve existing affordable units and keep tenants in their homes.

In addition to the COPA Bill, I am the primary sponsor of several bills to give towns more power to regulate and/or limit short-term rentals. In addition, I have been working on ways to help towns fund affordable housing on their own terms to reduce reliance on private developers.

While I am proud that our General Assembly passes a balanced budget each year, we must fund affordable housing somehow. I supported proposals to fund affordable housing by taxing real estate investors (short-term capital gains for “house flippers”) or through the so-called “Taylor Swift” tax (non-owner-occupied homes over $1 million). None of the proposals I supported would increase taxes on middle-class families. The text and legislative digest of the bills are linked on my website, victoria4ri.com.

As a proud resident and homeowner in Westerly, I am deeply committed to addressing our housing market challenges. I am always open to hearing your thoughts and concerns on this or any issue. You can reach out to me anytime to discuss what is important to you.

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Link to my letter in The Westerly Sun: https://www.thewesterlysun.com/opinion/letter-gu-s-working-on-affordable-housing-issue/article_0fdd407e-90b9-11ef-a99a-eb427f3f2ac1.html

Bills Related to Voting

Allows citizens of a city or town who are at least sixteen (16) years of age to register to vote and to vote in school committee elections in municipalities where school committees are elected entities.

Link Here

My note: My opponent mischaracterized this as lowering the voting age to 16 for all elections. If passed, this would only apply to local school committee elections. Local school board elections directly impact the day-to-day lives of 16 and 17-year-old students, and we have the opportunity to instill in them the lifelong value of voting.

Establishes a three (3) day transmittal period after the deadline for local boards to accept mail ballot applications, if delivered via the postal service.

Link Here

My Note: My opponent mischaracterized this as counting mail-in ballots three days after the election. This bill is about mail ballot applications, not mail ballots.