Who Pays for Libraries?
I know this will ignite a discussion, but we don’t need to tax every sale in the county. A half-percent property tax on homes that are sold for over $10 million would raise a lot of money. In 2023, there were 36 properties that sold for more than ten million dollars in our county. Those properties came to over a half-billion-dollars! Asking the 36 individuals or families or corporations that purchased $529,155,309 in property to pay another 0.5 percent would yield $26,457,765.
If a half-percent increase on properties over $10 million can cover the bill, and the UHNW (ultra high net worth) buyers of these homes, in fact, really can afford it and they stand to gain a lot of wealth by investing in those homes. Most UHNW individuals allocate a significant portion of their portfolios to equities, commercial real estate, and bonds. The majority of their wealth stems from the value of their primary and secondary homes.
The number of wealthy individuals globally is expected to increase by 28.1 percent over the five years to 2028. The U.S. is home to the most UHNWIs in the world — 241,253!
Just this year alone (yes, in just five months) a half-percent tax would have brought in $11 million from the 11 homes that closed over $10 million — the average sales price was $17 million. I don’t think an $850,000 bill will keep the ultra-rich from buying, but I do think that a regressive sales tax will further widen the economic imbalance that already exists. It’s an imbalance that seems to be worsening.