MYNORTHWEST NEWS

Cagey issue overshadowed by Seattle mayor’s resignation

Sep 14, 2017, 5:40 AM

property tax, foreign buyers...

(AP Photo/file)

(AP Photo/file)

One of the cagiest issues debated Tuesday by the Seattle mayoral candidates, overshadowed by the resignation of Mayor Ed Murray, was whether to tax foreign buyers purchasing property in the city.

RELATED: Moon and Durkan debate the issues

Mayoral candidate Jenny Durkan called opponent Cary Moon’s speculation to do so “xenophobic.” That’s about as serious a charge as you can make about a fellow liberal in Seattle.

Cary Moon responded.

It’s funny. The way you described it is exactly the way I described the solution. Let’s tax vacant properties. Let’s tax folks buying … homes just for the investment value. Let’s tax corporate ownership. I think that folks in the Chinese community were misinformed — maliciously misinformed, possibly — because I’ve never, ever-ever suggested a tax based on the location where people are from. I’ve said a tax on the activity to disincentivize it and make it less attractive and less lucrative for them so people go elsewhere with their money, or private equity firms or Wall Street firms go elsewhere with their money.

Durkan doubled down on her criticism.

“Words matter,” she said. “… and when you write an article that says Chinese money will be targeting Seattle next, if you’re a Chinese person who reads that, you may think that’s who you’re targeting. So I think we have to be very careful …”

Foreign buyers

Seattle leaders have debated the issue. Lisa Herbold, a council member, asked City Attorney Pete Holmes if such a tax on vacant properties and foreign buyers would be legal. She also asked King County Assessor John Wilson. The answer was a resounding “no.”

Last year, it was reported that property in Seattle was beginning to get more looks than in Vancouver B.C., where foreign buyers have been gobbling up real estate for years. One report found that while foreign investment shot up in Seattle, it saw a more than 80 percent decrease in the city north of the border. The cause, people speculated, was an additional 15 percent property tax on residential real estate purchased by foreign investors. The Vancouver Sun reported the share of sales volume from foreign buyers decreased from 16.5 percent in the metro area to 4 percent in less than a year.

Despite the tax, home prices in Vancouver continue to rise. As The Seattle Times pointed out, some wonder whether buyers are masking their identities when they make a purchase.

MyNorthwest News

Image: A bridge in Carnation....

Julia Dallas

Carnation frustrated with Seattle again after 8th false emergency alarm induces widespread panic

Carnation citizens have faced a series of panic-inducing alarms after SPU's system for the Tolt Dam falsely sounded eight times.

1 hour ago

Grocery store shopper...

Bill Kaczaraba

Ways to deal with Seattle grocery store sticker shock

Seattle grocery store sticker shock continues to play havoc on locals, but there are ways to counter high prices.

2 hours ago

belltown hellcat social media...

Frank Sumrall

Infamous ‘Belltown Hellcat’ social media influencer charged with reckless driving

The social media influencer has been accused of driving 107 miles per hour through Belltown in a Dodge Hellcat.

3 hours ago

KIRO Newsradio gracie awards...

MyNorthwest Staff

KIRO Newsradio anchors receive Gracie Awards for outstanding work

Heather Bosch and Lisa Brooks, anchors at KIRO Newsradio, have been honored by the Alliance for Women in Media with prestigious Gracie Awards.

6 hours ago

Kia Boys...

Kate Stone and Bill Kaczaraba

‘Kia Boyz’ allegedly execute a crime spree in south King County

Renton police chased down a 14-and 16-year-old but are still looking for two other teen suspects in what they said was a "crime spree" in south King County.

7 hours ago

Spanaway woman shot dead...

Kate Stone

Search for shooter continues after woman shot dead while driving in Spanaway

A 47-year-old woman was shot dead in Spanaway, causing her to hit another driver head-on early Wednesday morning.

8 hours ago

Cagey issue overshadowed by Seattle mayor’s resignation