Realtors and Potential Home sellers should be educated and aware of the Land Transfer Tax fight in the State of North Carolina. Why? The tax would have potentially impacted Home Sellers to pay an additional 1% tax on the sell of their home. The tax would adversely impact areas, such as Fayetteville, NC with a large military community. Why? The military family members move every 3 – 5 years, taking the additional funds out of our hard –working military member’s pockets. Consumers, always ask your Realtor the tough questions so that you’re well informed with potential changes to your bottom line. Below is the overview of the fight over the NC Land Transfer Tax and it’s potential impact:
1) Equity is stripped from the seller. Because transfer taxes are paid by the seller, part of the equity that the homeowner acquired in the property is taken away. This equity is important to apply to the purchase of the next home, sending children to college, saving for retirement or starting a small business. The Home Tax hurts everyone-from the elderly couple who is counting on the equity from the sale of their home to pay for retirement or an alternative living arrangement to the young couple selling their starter home and looking for a bigger house for a growing family. Owning a home is the result of hard work, personal responsibility and sacrifices. There shouldn't be a tax for the privilege of selling your own property.
2) Transfer taxes are unfair. This type of housing tax is discriminatory because it is assessed against only one type of asset - real estate. A household that moves frequently, for whatever reason, does not derive additional benefits or place additional burdens on infrastructure as compared to a household that does not move at all.
3) The Home Tax is regressive. People with lower incomes spend a larger percentage of their income on housing than people who have higher incomes. Therefore transfer taxes impose a higher tax burden on lower income households.
– Highlights from www.itsabadidea.org.
Eric Anderson, Team Leader
Keller Williams Realty - Fayetteville
EricAndersonNC@kw.com
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