The Real Estate Roundtable (RER) and sixteen other national real estate organizations recently wrote to Congress urging them to oppose any proposal that would cap or eliminate the deductibility of state and local business property taxes.  (Letter)

A cap on property tax deductibility could have devastating consequences for commercial real estate owners, developers, and investors nationwide.

Call to Action

The Real Estate Roundtable urges members to amplify this message to their representatives in Congress.

Click here to find your Representative.   Click here to find your Senators.      

Effects on CRE and the Broader Economy

• Some lawmakers have raised “Business SALT” and potential restrictions on the deductibility of state and local property and income taxes as a possible revenue offset for the tax bill.

• The ripple effects of this proposal would extend far beyond property owners to impact the broader economy and housing affordability nationwide.

• U.S. commercial real estate is valued at $18-$22 trillion, supporting 15 million jobs and generating $2.3 trillion in GDP annually.

• Eliminating the business deduction for property taxes would be the equivalent of raising business owners’ property tax bills by roughly 40 percent, causing employers to owe federal tax on money that they do not have.

• This tax change could reverse the benefits of the 2017 Tax Cuts and Jobs Act (TCJA) and Section 199A, potentially raising effective tax rates to 1970s-era levels near 50%.

• Additionally, the increased tax burdens could discourage new investment, deter housing development, and exacerbate the national housing crisis.

• Given that U.S. businesses paid $1.1 trillion in state and local business-related taxes in 2023 (including nearly $400 billion in property taxes), the stakes are extremely high.