2022 Ballot Initiatives That Could Impact Homeowners

A plethora of factors can influence the real estate market and give you cold feet before you’ve even signed on the dotted line. 

Property availability, prices, and investment potential are mainly influenced by demographics, interest rates, and economic cycles, but they’re also closely tied to government policies and legislation, including tax incentives. 

Whether you’re a new or soon-to-be real estate investor, knowing what’s on the ballot can help you make smarter investment decisions and mitigate risks. 

Even if an initiative isn’t currently on the ballot in your state, popular measures are often echoed in other areas across the country. With that in mind, here are some of the most impactful initiatives to get familiar with before you purchase your next property.

1. California’s Wealth Tax

In November 2022, we’ll see the Wealth Tax to Support Clean Air Programs on the ballot in California. 

The proposition would implement a 1.75% tax increase on personal income over $2 million, which could generate $3 billion to $4.5 billion annually to create funds for electric vehicle incentives and wildfire prevention. 

Mitigating wildfire damage

Wildfire management costs California billions every year. Businesses, environmentalists, and public health organizations alike argue more needs to be done to fight climate change.

The wealth tax initiative further encourages zero-emissions vehicles and infrastructure, a program that has already been adopted in 12 states. Funds will also be used to support low-income communities or those who live in heavily polluted areas, as well as provide additional wildfire protection and prevention.

Insights for real estate investors

Similar to property taxes, a wealth tax would apply to all property in your ownership. Residential and commercial real estate will be subject to the tax.

A wealth tax could help address the growing housing shortage, which has discouraged first-time home buyers and renters, as well as contributed to homelessness.

2. Washington’s Property Tax

King County, Washington’s Proposition 1, Property Tax for Natural Areas, Trails, and Green Space Funding Measure is an effort to restore and preserve conservation in the region.

The proposition would enact a property tax of $6.25 per $100,000 of assessed value to provide an advisory committee and funding for green spaces like natural areas, wildlife habitats, trails, river corridors, farmlands, and forests within King County.

Creating healthy, prosperous communities

Conservation directly affects flood protection and air quality in King County. Green spaces allow for more recreation and community connection, which is critical because many King County communities experience disproportionate racial, social, environmental, and economic inequities. 

Land stewardship can benefit homeowners and residents alike — particularly low income families experiencing excessive heat, poor air quality, or flooding. Supporting communities’ health and prosperity in this way can significantly influence the real estate market.

Building affordable housing

In 2023, King County will see Initiative 135 on the ballot, which would establish the Seattle Social Housing Developer to create permanently affordable housing. This measure is also generating interest in California and Hawaii. 

According to the National Association of Realtors, “there are many misconceptions about affordable housing, the main one being that they decrease property values. A recent study in Alexandria, Virginia has proven that affordable housing actually increases or has zero effect on property value.”

Good news for homeowners all around.

3. Florida’s Flood Resistance Improvements

Florida Amendment 1, Disregard Flood Resistance Improvements in Property Value Assessments Measure would allow the state legislature to pass laws blocking the consideration of flood resistance improvements when assessing a property’s value for taxes.

Lessening flood risks for Floridians 

Florida experiences the highest amount of property value losses due to flooding, with Dixie, Franklin, and Monroe Counties at risk of losing property value the fastest. In 2022-23, legislation from the Florida House will dedicate $100 million to mitigate the impacts of flooding on homes and businesses. 

4. Florida’s Property Tax Exemption

Public service workers could soon receive a tax break to buy a home in Florida. Florida Amendment 3, the Additional Homestead Property Tax Exemption for Certain Public Service Workers Amendment would provide an additional homestead property tax exemption of $50,000 on assessed values between $100,000 and $150,000 for property owned. 

Who qualifies for the exemption 

The amendment is designed to lessen the financial burden purchasing a home may have on the public workforce. Those eligible include essential workers like K-12 classroom teachers, law enforcement officers, emergency medical technicians, and more.

It’s estimated that approval of the amendment would reduce local property tax revenue by $85.9 million, resources that typically fund local governments. As property values and taxes increase, this initiative could improve the accessibility of the real estate market for first time buyers. 

Make moves on your rental home with confidence

Making predictions about the real estate market and how to price your rental home isn’t as simple as looking at the latest news cycle — we recommend seeking expert advice. If you have a rental property and are seeking a hassle-free experience with an expert crew to support your investment goals, book a consultation with us at Belong.