The saying goes that you can’t tax the air.  In Los Angeles they ARE taxing the rain!!  No joke.

“Williams explains that the Rain Tax, officially aimed at managing stormwater runoff, is gaining traction in various cities. It allows local counties and municipalities to collect taxes from properties with large paved surfaces. “It’s already law in Los Angeles, and they’re working on it in Portland,” Williams says. This tax will charge property owners based on the square footage of impervious surfaces, like driveways and roofs, that contribute to runoff.”

This is a disaster.  This is why the cost of commercial property ownership is so expensive.  Want to kill California, start taxing the air—sadly, it could happen.

Get Ready to Pay for Rain: The New Get Ready to Pay for Rain: The New Rain Tax is Coming

Rain Tax is Coming

BY SARAH JAMESON, Building Elements,  7/24/24  https://greenbuildingelements.com/get-ready-to-pay-for-rain-the-new-rain-tax-is-coming/

In a recent video by finance expert John Williams, a new and controversial tax is making headlines – the Rain Tax. Williams discusses how this tax, which is already implemented in some U.S. cities, will impact property owners across the country. The tax is designed to manage stormwater runoff, but its implications extend far beyond that.

Investments in Decarbonization

Williams begins by highlighting significant investments by major corporations like Jeff Bezos, Bill Gates, Salesforce, and Goldman Sachs in a startup called BlocPower. Their goal is to decarbonize all homes in America. Bezos, through the Bezos Earth Fund, invested an additional $5 million to map out 125 million buildings nationwide, providing free plans for environmental sustainability. While this sounds benevolent, Williams suggests it is essential to look deeper into such initiatives.

The Concept of the Rain Tax

Williams explains that the Rain Tax, officially aimed at managing stormwater runoff, is gaining traction in various cities. It allows local counties and municipalities to collect taxes from properties with large paved surfaces. “It’s already law in Los Angeles, and they’re working on it in Portland,” Williams says. This tax will charge property owners based on the square footage of impervious surfaces, like driveways and roofs, that contribute to runoff.

The Spread of the Rain Tax

The Rain Tax is not just limited to Los Angeles and Portland. According to Williams, it is also being discussed in Philadelphia and Toronto. “Every square inch of property you own could be taxed based on the amount of rain that hits it,” Williams warns. He points out that this tax could significantly affect property owners financially, especially those who own larger properties or commercial spaces.

Real Estate Market Implications

Williams links the introduction of the Rain Tax to a broader context of what he calls “the greatest real estate rug pull in history.” He notes that 40% of all single-family homes in America were purchased between 2021 and 2022 at peak market prices. Now, with rising costs and additional taxes, many homeowners might find themselves in financial hardship. “People are in a harder spot today than they’ve been in a very, very long time,” Williams asserts.

Environmental Justifications and Criticisms

Proponents of the Rain Tax argue that it encourages investments in green infrastructure, such as rain gardens, permeable pavements, and green roofs, which can mitigate stormwater runoff. Williams acknowledges this but also highlights the financial burden it imposes on property owners. “The proposal will likely face criticism regarding the potential financial implications,” he says.

Government Initiatives and Economic Impact

Williams also discusses broader government initiatives aimed at reducing greenhouse gas emissions and improving energy efficiency. He mentions the Inflation Reduction Act and the deployment of 20 million heat pumps to decarbonize homes. While these initiatives have environmental benefits, they come with substantial costs for homeowners. “A lot of people getting pushed out of their properties” could be a consequence, Williams warns.

The Role of Private Equity and Predatory Practices

Williams expresses concern about the involvement of private equity firms and lenders in financing these environmental upgrades. He predicts an increase in predatory practices, where lenders offer high-interest loans for home improvements, leading to financial strain for homeowners. “Many people don’t realize the amount of predators that are going to be stepping in to try to capitalize on this situation,” he cautions.

Preparing for the Future

As the Rain Tax and related environmental initiatives take hold, Williams advises property owners to stay informed and be prepared for potential financial impacts. He urges viewers to consider their financial positions and seek ways to mitigate these new expenses. 

“Being Treated Like an ATM”

People in the comments shared their thoughts: “If you’ve ever had a feeling like you’re being treated like an ATM…. You’re not wrong”

Another person said: “Just ways to get people out of their homes. Even if you have no mortgage, they will add all these extra expenses until they push people out of their homes. I see through the plot.”

One commenter concluded: “So if I don’t make enough to file taxes and have about $200 left over my paycheck after the bills, no one’s gonna offer me anything. And if they did, I wouldn’t do it because I wouldn’t have the money to pay it. And if they say well, you can pay it and you sell your house I would say no thank you. I worked hard for my house. I’m not gonna give it to my government or to these people. It belongs to my family.”

Navigating the New Tax Landscape

While environmental sustainability is crucial, the introduction of the Rain Tax raises valid concerns about financial equity and the burden on property owners. Balancing environmental goals with economic realities is essential to ensure that these initiatives do not disproportionately impact certain groups. As policymakers and citizens navigate this new landscape, open dialogue and careful planning will be key to achieving sustainable and equitable outcomes.

Impact on Homeowners

What do you think? How do you think the Rain Tax will impact homeowners’ financial stability, especially those already struggling with high living costs and mortgage payments? Is it possible to achieve a balance between environmental sustainability and economic equity with policies like the Rain Tax, or will they always disproportionately affect certain groups? How do you feel about the significant investments by corporations like Amazon and Microsoft in environmental initiatives? Do you think their involvement is primarily altruistic, or do they stand to benefit financially in ways that might not be immediately apparent?