Thursday, April 21, 2011
A new issue has arisen in Olympia concerning the taxation of mortgage loans. Activists are lobbying to apply the business and occupation tax on interest earned by income lenders on mortgage loans. There was a good editorial in the Seattle Times about this home mortgage tax. Basically, if this tax is imposed, it’s a near certainty mortgage rates will climb to cover the costs. (Not like the banks are just going to eat the cost to do mortgages in Washington State). While there are signs that the home market is recovering in Seattle, this tax seems to be a very dangerous proposal. Loans are harder for home buyers to get as it is – now these activists want to make it even harder? If you are thinking of buying or selling a home in Seattle this year, next year, or in your lifetime – you should tell your legislature that this is not a good idea.