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| A Monthly Publication of the Raleigh Regional Association of REALTORS® |
March 2008 Issue
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| About
Us November Dates to Remember
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Transfer Taxes - Don't Be Fooled As 2007 ended and we reflected upon the association's goals and achievements, changes and challenges, and programs and projects, we celebrated a major victory. REALTORS® across the state, along with home owners sent a very strong message to state officials and county commissioners. We said (emphatically) “NO,” to allowing new taxes on our homes. The question of whether to allow a .4 percent tax on the sale of property was opposed by a large majority of voters from the outset. Proponents of the tax (the N.C. Association of County Commissioners and various school boards) framed the issue as a ‘pro-school’ versus ‘anti-school’ issue, even sending home flyers with the school children for their parents to read. A particular favorite was the school district that sent the support flyer home to teachers and employees stapled to their paychecks. Don't be fooled, there’s no obligation for any county to use this money for critical services like schools or roads. They can use it for any pet project they want with no strings attached. The truth is a simple one: homeowners need and deserve the equity that they have built in their property and the county needs to get their hands out of our pockets and reexamine their spending practices. Those in the real estate or building industries are often blamed for creating ‘growth,’ but there’s never any criticism to the millions spent by counties in corporate giveaways to attract companies who in turn bring employees here to use our services. Over the past few years, Wake County has spent millions luring companies to the area and giving them tremendous tax breaks. Those of us who follow government understand that according to bureaucrats and some elected officials, the only reason a program ever fails is that there’s not enough money. The state’s problem isn’t a revenue problem, it’s a spending problem. According to fiscal research estimates by the General Assembly, a .25 percent sales tax increase would generate more than $28 million, while the .4 percent land transfer tax would generate almost $32 million. However, the only people paying the transfer tax would be land owners. Do land owners have a greater responsibility to pay for services than those not owning land? Additionally, a land transfer tax does not provide a stable revenue stream; all you need do is look at our market to see that. Dare County has had a land transfer tax for years, and their 2006 LTT revenues were down more than 40 percent. They’re now considering additional fees and taxes. If instituted here, a land transfer tax would be permanent and would only increase. Do we really want to authorize elected officials with another tax? Remember
Nov. 6, 2007. Voters said “NO” 16 out
of 16 times. Amazingly, county commissioners in
Orange, Caswell, Pamlico, Lee, Avery and Jackson weren’t listening. They’re
seriously considering placing the transfer tax on the ballot in May.
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| Raleigh
Regional Association of REALTORS® | Phone:
919.654.5400 Fax: 919-654.5401 |