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!