The California Desert Association of Realtors (CDAR) has taken a stand against AB 1771, also known as the California Housing Speculation Act, finding the additional tax detrimental during "California's housing crisis."
AB 1771 calls for an extra 25% tax on a taxpayer's net gain from selling or exchanging an asset, like a home, a report from Open States said. Democrats Christopher Ward and Kevin Mullin have sponsored the bill.
"This bill taxes homeownership and offers the wrong solution for California's housing crisis," CDAR said on Twitter recently.
The legislation has met with "major opposition," a recent CBS8 report said. Critics say the bill would impact regular homeowners to the same degree as the investors it is intended to target. And during a time when the inventory of available homes for sale is meager, other opponents of the bill fear it could dig deeper into the supply by encouraging homeowners to delay selling.
CDAR represents more than 3,000 Realtors and affiliates in the Coachella Valley area, the association's website said. Its mission is "to provide market information, products and services, standards of practice, education and advocacy for our members and the public."