Bill Overview
Title: American Property Act
Description: This bill imposes an excise tax on foreign persons who own any specified under-utilized residential real property for more than one-half of any taxable year. The amount of such tax is 1% of the estimated value of such property. The bill defines specified under-utilized residential real property as any specified residential property located in the United States that is occupied as a dwelling unit for less than 29 days during the taxable year. Specified residential property means a single-family home or structure consisting of four residential units or less, or a part of a building that is a semi-detached house, rowhouse unit, residential condominium unit or other similar premises that is, or is intended to be, a separate parcel or other division of real property, and includes any land that was conveyed with such home, structure, or building.
Sponsors: Rep. Jacobs, Chris [R-NY-27]
Target Audience
Population: Foreign persons owning under-utilized residential property in the U.S.
Estimated Size: 0
- The bill targets foreign owners of under-utilized residential properties in the U.S., so it directly impacts these foreign individuals.
- There are many residential properties in the U.S., and a portion of these are owned by foreigners as investment properties.
- The bill specifically impacts those foreigners who have properties occupied for fewer than 29 days a year, as they will face the excise tax.
Reasoning
- The policy directly targets foreign owners of under-utilized residential properties in the U.S., creating a financial disincentive to leave these properties largely vacant.
- It's likely that some foreign owners may choose to rent out or sell their properties to avoid this tax.
- This could potentially increase availability of housing in areas with high foreign ownership, possibly affecting local housing markets.
- It might lead to a price stabilization or decrease in areas where speculative ownership was high, impacting local homebuyers positively.
Simulated Interviews
Real Estate Agent (New York City, NY)
Age: 34 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 12/20
Statement of Opinion:
- I'm concerned that this policy might make foreign investors less interested in buying property here, which could slow down the market.
- However, it could also mean more inventory for local buyers, especially if these properties get sold or rented out.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 7 | 6 |
Financial Analyst (Miami, FL)
Age: 41 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 2.0 years
Commonness: 15/20
Statement of Opinion:
- Taxes like these are a double-edged sword. They can open opportunities for local buyers but also scare potential investors away.
- Overall, it might help stabilize home prices if foreign speculation decreases.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 8 | 7 |
Aspiring Homebuyer (Los Angeles, CA)
Age: 29 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 10/20
Statement of Opinion:
- This sounds like it could help bring prices down, or at least make more houses available.
- I'll be watching closely to see if more listings start showing up that are within my budget.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 8 | 6 |
University Professor (Boston, MA)
Age: 50 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 10.0 years
Commonness: 8/20
Statement of Opinion:
- This is an interesting policy that could really benefit cities struggling with high vacancy rates caused by international investment.
- It could lead to better community engagement if these properties start getting occupied.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 9 | 8 |
| Year 3 | 9 | 8 |
| Year 5 | 9 | 8 |
| Year 10 | 9 | 8 |
| Year 20 | 9 | 8 |
Retired Entrepreneur (San Francisco, CA)
Age: 62 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 3.0 years
Commonness: 9/20
Statement of Opinion:
- This tax could make it more difficult to speculate in the property market, which might stabilize my neighborhood.
- I hope this leads to more local residents being able to afford living here.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 8 | 7 |
Property Manager (Austin, TX)
Age: 38 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 4.0 years
Commonness: 13/20
Statement of Opinion:
- I might lose some clients if they decide to sell their properties due to this tax, but it also might make it easier for locals to find housing.
- It's a bit of a mixed bag depending on how it plays out.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 7 | 6 |
Tech Worker (Chicago, IL)
Age: 27 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 3.0 years
Commonness: 16/20
Statement of Opinion:
- If this policy can bring more housing back into the market, it could help reduce urban sprawl and make cities more livable.
- I hope it encourages community growth by increasing housing access.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 9 | 8 |
| Year 20 | 9 | 8 |
Software Developer (Seattle, WA)
Age: 45 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 11/20
Statement of Opinion:
- I think this policy might help address some availability issues, particularly in areas with high foreign ownership.
- It may stabilize prices and help friends who are trying to buy.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 8 | 7 |
School Teacher (Houston, TX)
Age: 54 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 6.0 years
Commonness: 14/20
Statement of Opinion:
- This could increase housing options and maintain neighborhood vitality if it brings more permanent residents into areas currently dominated by empty properties.
- I'm cautiously optimistic.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 8 | 6 |
Casino Manager (Las Vegas, NV)
Age: 33 | Gender: other
Wellbeing Before Policy: 7
Duration of Impact: 2.0 years
Commonness: 15/20
Statement of Opinion:
- This policy might discourage absentee owners, potentially bringing more people into our community.
- It should be interesting to see if this affects local business as housing dynamics change.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 8 | 7 |
Cost Estimates
Year 1: $15000000 (Low: $10000000, High: $20000000)
Year 2: $15000000 (Low: $10000000, High: $20000000)
Year 3: $15000000 (Low: $10000000, High: $20000000)
Year 5: $15000000 (Low: $10000000, High: $20000000)
Year 10: $15000000 (Low: $10000000, High: $20000000)
Year 100: $15000000 (Low: $10000000, High: $20000000)
Key Considerations
- The tax might induce behavioral changes in property usage by foreign owners, affecting the number of properties remaining under-utilized.
- Administrative costs pivot on the complexity of identifying qualifying properties and ensuring tax compliance.
- Market dynamics could alter as foreign owners evaluate the cost of maintaining under-utilized properties against the excise tax, potentially affecting local housing availability.