BUSINESS BRIEF: Realtors in Sequim, Port Angeles come out against taxes in House Democrats’ budget proposal

Published 12:01 am Wednesday, April 1, 2015

The Realtors associations of both Port Angeles and Sequim say they oppose the tax increases in the state House Democrats’ recent budget proposal.

The proposal, which was announced Friday, includes a capital gains excise tax of 5 percent, which would include a tax on a second home that grows in value.

The budget would also reverse a 0.3 percent cut in the business and occupation tax.

The capital gains tax on a second residence that gained value would come despite all homes already having a state and local real estate excise tax imposed on them at the time of sale.

The associations said the proposed capital gains tax would put a significant burden — more than 7 percent in total home taxes in some areas — to the second home market that is important to a healthy housing market in both communities.

They added that the proposed B&O tax increase would be on the gross income of “services and other activities” that include real estate brokers, barbers, beauty salons, veterinarians and dozens of other small businesses.