My opponent would like you to think he is defending the average household, but he’s actually criticizing bills that tax millionnaires and/or real estate investors.
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).
My Note: If a municipality chooses to use it, this would be a one-time impact fee on new commercial developments, similar to other impact fees for water or sewage. The bill does not mandate 10% or any specific amount; that 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 commercial development.
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.
My note: Massachusetts passed a similar millionnaires tax a year ago and brought in a lot of funding for education and higher education. Many other states have similar tax structures.
My Note: A tax on short-term capital gains is meant to discourage real estate “flippers” – investors who buy a property (often in cash to out-compete regular homebuyers) then renovate and sell for a profit.
My Note: A one-time “mansion tax”, if a town chooses to opt in, this would only apply to the amount that is over $800,000 in a home sale. It would fund affordable housing within the town it is collected in.
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.