LETTER: Raising real estate taxes in Nevada during a down market
The Review-Journal reported Feb. 7 that a plan to raise the real estate transfer tax has arisen in the Legislature. This idea to increase the cost of buying and selling homes coincides with the realty that housing sales are plummeting — largely because housing has become unaffordable.
The money raised by this tax increase is slated to fund “mental health care needs and other services,” according to the story. The need for addressing mental health in Nevada is undeniable and confirmed by the fact that we rank dead last among all states — even below D.C. — in last year’s report on “The State of Mental Health in America.”
The board advocating for the proposed increase to the cost of housing estimates that Clark County would get $7.6 million yearly from the tax. The amount would be much higher except for the fact that the big players — those who buy and sell casinos, malls and expensive Strip real estate — enjoy a loophole whereby they pay no transfer tax. According to a previous RJ report, this group wheeled and dealed on $27.5 billion in transactions and paid no transfer tax.
So the burden of paying for additional “psychiatric care” and “social and emotional learning” will fall on Nevadans who are trying to figure out how they can afford to own their own home.
Despite the fact that this tax will further stress a flagging real estate market and that the tax burden falls on the “little guy”— we can’t ignore the fact that mental health is a serious problem and not just on “skid row.” This bill proves conclusively that mental illness has infected … the state Senate.