Tag Archive for ‘tax’

International Perspective: The VAT and Housing

***The following post was authored by NAHB’s Economics and Housing Policy Group’s summer intern, Emily Condos. Value Added Taxes (VAT) are a reliable source of revenue for many governments, with the United States being a notable exception with respect to their use. The taxation of housing is a key element in designing a VAT. An overly broad tax base with… Read More ›

New Residential Energy Tax Credit Estimates

In 2005, Congress established a number of energy-efficiency tax incentives related to housing that benefitted new home buyers and remodeling homeowners. These policies included the tax code section 45L credit for the construction of energy-efficient homes (including for-rent residences and low-rise apartments), the 25C credit for retrofitting/remodeling existing homes, and the 25D credit for the installation of power production property in… Read More ›

An International Comparison of Real Estate Property Taxes

As a share of total taxes collected, real estate property taxes in the United States are responsible for a relatively high share of total government revenues. According to statistics produced by the Organisation for Economic Cooperation and Development (OECD), the average share of total government tax collections due to real estate property taxes (recurrent taxes on immovable property) was 3.347%. In contrast, for the United… Read More ›

New Study Highlights Importance of Like-Kind Exchange Rules

New academic analysis illustrates the critical role that tax code’s like-kind exchange rules play for the real estate sector. The research was authored by David Ling of the University of Florida and Milena Petrova of Syracuse University, with financial support from the Real Estate Like-Kind Exchange Coalition, which is comprised of organizations representing all sectors of the real estate industry, including… Read More ›

Property Taxes Make Up 40% of State and Local Tax Revenues

According to NAHB tabulations of the Census Bureau’s quarterly data, property taxes constituted 39.7% of state and local tax receipts among major sources for 2014. Sales taxes had the second largest share at 27.8%, followed closely by individual income tax at 27.9%. At 4.6%, corporate income taxes held the smallest share of state and local tax receipts among major sources. Further gains are expected in… Read More ›

Use of Depreciation Deductions in Real Estate and Construction

Examination of IRS data demonstrates the importance of various depreciation deductions for the construction and real estate sectors. These rules include the Section 179 small business expensing option, bonus depreciation, and normal tax depreciation. The data also illustrate what classes of property are most common, including the 5-year class for construction equipment and apartment property. This information is useful for the… Read More ›

Who Does LIHTC Housing Serve?

The Low-Income Housing Tax Credit (LIHTC) ensures a supply of affordable rental housing. Created as part of the 1986 tax reform effort, the LIHTC, also known as the affordable housing credit, has been responsible for financing the development of more than 2.6 million affordable rental homes. In a typical year, the housing credit also supports approximately 96,000 jobs. A recent… Read More ›

Top Posts of 2014: Real Estate Taxes by State

With the end of 2014 approaching, NAHB’s Eye on Housing is reviewing the posts that attracted the most readers over the last year. In October, we used Census data to track property taxes among states. —————————– By Josh Miller According to the recently released 2013 American Community Survey (ACS) New Jersey once again led the nation with the highest median real estate tax bill… Read More ›

New Study Highlights Benefits of the Affordable Housing Credit

A new study of California affordable housing developments provides important findings concerning the role and benefits of the Low-Income Housing Tax Credit (LIHTC). The affordable housing credit ensures a supply of equity financing for the development of needed rental housing. The report was prepared for the California Department of Housing and Community Development, the California Tax Credit Allocation Committee, the… Read More ›