Letter: New sales tax won’t help local housing issues

Published 9:10 am Monday, June 26, 2023

Adding more sales tax to our already high tax is not the answer to the cost of housing and in my opinion is only a bandage on a much larger wound.

The real issue with housing is the cost of all the new regulations added via energy code and building code. Being in a D2 seismic zone doesn’t help either.

Back in the 1990s the county opted to join growth management as the state dangled a financial carrot. This was to push people into more dense housing (apartments, duplexes, etc.). These were not built for most people in our area who don’t want to live with neighbors that close (especially after covid). We are in a rural area and not really a city where people tend to live in apartments. So without any demand for this type of building, none were built.

Now, even a single family home with a small square footage requires the same amount of energy credits as a 5,000-square-foot house (unless it is unreasonably small — think tiny home.)

If you want less expensive housing, then fix the problem. Don’t “redistribute the wealth” with another tax that really isn’t going to change anything.

If the county really wants to help, set the sales tax rate for new homes under 1,800 square feet to 6.5% (the base state rate). Offer incentives on the cost of the permit fees. Have a modular apartment plan set that can be used that is already approved. These will entice builders and investors to built the housing that is needed — though I have to wonder who will even be able to afford to live in them, as there are not many jobs that pay enough here.

Service sector employees do not tend to be able to afford much, nor do those working in agriculture. Typically, even the owners of these types of businesses are not “making bank,” so I’m unsure how they could afford to even pay more without pricing themselves out of business.

It is a very dynamic, complex, and urgent issue for sure, and it is one I have thought about quite a bit.

ROB WALTEMATE

Long Beach

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