2008 Woodie Awards
Sten proposes statewide real estate tax
Tax, fee would fund new plan to increase amount of affordable housing in Portland area
By: Robert Seitzinger
Issue date: 5/11/07 Section: News
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Sten is proposing that the state place a 0.5 percent tax on real estate sales and is endorsing a bill that would include a $15 document transfer fee on all real estate deals. Oregon does not currently have any real estate taxes in place, one of the few states in the nation lacking such taxes.
Sten said that the city of Portland is currently spending $60 million on affordable housing. He said that a real estate tax on housing sales in Portland could double the amount of available funds.
Sten said he hopes that the city of Portland will be able to increase the number of affordable housing units in Portland by about 20,000 units in the coming years. Sten said the city currently has around 30,000 units, and that he hopes to see that number increase to about 50,000 units. He said that Portland is currently adding about 2,000 affordable housing units per year.
"We'd love to see some federal funding for this issue, but it'll mostly be a local effort that will make the necessary changes," Sten said.
Affordable housing is housing space that is dedicated to low-income residents and homeless people trying to transition into permanent housing units.
Sten discussed his ideas for affordable housing at Portland State's Urban Center Building Thursday in an event put on by the Planning Includes Equity (PIE) group. The group served pie to a crowd of about 35 people who attended the hour-long conference.
Without a sales tax, Oregon residents are forced to pay a high income tax each year, Sten said. Because of the income tax, some people even live in Vancouver, Wash., to avoid paying Oregon's high income taxes and save money on housing, he said.
"Even the middle class is having a hard time finding apartments downtown," Sten said. "If we had had a real estate tax in place during our recent housing boom, we'd have plenty of funding for affordable housing for everyone who lives in the city."
Viewing Comments 1 - 9 of 10
Bob Clark
posted 5/11/07 @ 8:24 AM PST
This proposal is sickening. Taxes and over zealous building restrictions are making homes unaffordable. And what does Sten propose: more taxes. He takes our property tax money and gives it to his favorite people out at Dignity Village, who pay no rent for living on public land (soon to be served with running water and sewer at no charge). (Continued…)
Steve
posted 5/11/07 @ 8:26 AM PST
Boy blunder with another anti-business, elitist liberal tax scheme. When will people quit listening to this moron? Between the water bill fiasco and his public election funding Eric Sten has lost the city 50-60 million dolaars! How many affordable houses would that have built? What a loser!~
Steve Buckstein
posted 5/11/07 @ 10:01 AM PST
"People need places to live, so let's give them a place to live." So let me get this straight, increasing the cost existing "places to live" will somehow create more places to live? This looks a lot like a dog chasing its own tail. (Continued…)
eddie
posted 5/12/07 @ 8:53 AM PST
I'm trying to wrap my head around the mental gymnastics required to accept the commissioner's statements at face value, and I just can't quite manage to do so. (Continued…)
DJ
posted 5/12/07 @ 10:58 AM PST
Sten talks of increasing homeownership to 80% if we "give them a place to live." Providing someone a home with taxpayer dollars does not create an owner class, it creates a welfare class. (Continued…)
frost
posted 5/12/07 @ 11:28 AM PST
Rob Peter to bail-out Paul? Yet another in the seemingly never-ending series of "wealth" redistribution.
Strange, but when my friends couldn't afford to live in an area and it became a tad too high priced to pay the rent, they MOVED to an area where the living was more affordable!
Unbelievable! Almost. (Continued…)
jalapenopecker
jalapenopecker
posted 5/13/07 @ 3:54 PM PST
Sten wants to tax OUTSIDE his jurisdiction???
Sure, tax Wallowa County, the poorest part of the State, so that winos from California, will have a place to live in Portland. (Continued…)
jalapenopecker
jalapenopecker
posted 5/13/07 @ 5:10 PM PST
A real estate tax for Wallowa County, for the benefit of Eric Sten? Let's see now, how does that make sense?
Wallowa County is economically depressed, counties in Oregon; maybe even the country. (Continued…)
Baynative
posted 5/14/07 @ 6:37 AM PST
My wife and I were looking for a sensible place to move a few years ago in order to get away from our native California which is rapidly deteriorating socially and civilly. (Continued…)
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