Industry Leaders Call on Congress to Include State and Local Tax (SALT) Deduction Relief
The Northern Virginia Association of REALTORS® joins the National Association of REALTORS® in supporting key real estate related provisions of the Build Back Better Plan announced by President Biden.
The plan proposes a $1.75 trillion framework and includes hard-fought REALTOR® priorities such as investments in affordable housing and down-payment assistance, and spares real estate investment from controversial taxes.
According to Ryan McLaughlin, CEO of NVAR, the DC-metro based association with 13,500 members, the Northern Virginia group applauds the $150 billion investment in affordable housing, which is a key REALTOR® priority and focus in the greater Northern Virginia region. This historic investment into affordable housing includes money for public housing, Housing Trust Fund, HOME, down payment assistance, housing vouchers, and the Minority Business Development Agency.
Among the positive outcomes of the bill, McLaughlin also expressed his concern about the controversial cap on State and Local Tax (SALT) deductions. The SALT deduction, which includes relief for real estate taxes, benefits taxpayers across all brackets, was not mentioned in the bill.
According to a 2019 NAR study, 38 percent of Virginia’s residents use the SALT deduction with an average deduction of $11,509. A 2021 state-by-state comparison of the SALT deduction in Policygenius stated Virginia represents 2.8 percent of the national SALT deductions.
According to NAR, congressional leaders still support an increase in the SALT cap, and a group of bipartisan House members is still demanding a solution. NVAR joins NAR in advocating for a solution on SALT through an amendment that can be added in once the bill is in formal debate.
ABOUT NVAR
The Northern Virginia Association of Realtors® serves as The Voice for Real Estate in Northern Virginia, enhancing the ability and opportunity of its members to conduct their business successfully, promoting professional competency, upholding the principles of fair housing for all, and preserving the right to own, transfer and use real property. With offices located in Fairfax and Herndon, NVAR has grown to more than 13,500 Realtor® and real estate service provider members who carry out a real estate industry in a community of more than of more than 2 million residents. Visit NVAR at www.nvar.com.