Tough question but one we'll all need to consider soon. The state of Arizona (and many other states) has looked into taxing homeowners when they sell their home. The worst part is they will tax you based on the sales price not the equity gain on the home. So they tax the employer you work for, they tax your income you use to buy the home and then they will tax you on the price of your home. Sounds even worse then double taxation!

How will this effect people? First it will hurt the people who are selling their home with little to no equity...something that is happening a lot right now. There many people that do not have a lot of equity and a tax on the sales price could eat up more of the $$ they would have after the sale. Second, since it costs more to sell a home, the buyer will then take on the burden of the tax since the homeowners will most likely try to pass this cost onto the buyer in the form a slightly higher price.

What do we do?  The Arizona REALTOR Association has started a petition drive to collect signatures that would allow them to place this question a ballot so we can all decide. This petition asks for the permission to vote on amending the constitution of Arizona thus canceling any options for the government to go after this new tax. Bottom line is the state needs money but not at the expense of the homeowners that are already taxed enough.

I'm asking for my readers to speak out! Let me know what you think and I'll pass it along to the REALTORS Association.