REALTORS Oppose Doyle’s Tax on The American Dream

Statement from the Wisconsin REALTORS® Association
February 13, 2007


Madison –Governor Doyle’s budget proposal to increase the real estate transfer tax is a tax increase on the American Dream of homeownership according to the Wisconsin REALTORS Association (WRA).  “This is a tax increase of $140 million on homeownership that will hurt housing affordability in Wisconsin,” said Roger Rushman, Chairman of the WRA.  “Raising the price of housing will turn some ‘could be’ homeowners into ‘won’t be’ homeowners overnight,” Rushman said.  He said the Realtors will vigorously oppose the Governor’s plan. 

The Realtors also questioned why Governor Doyle proposed the tax increase after promising not to raise taxes.  “The Governor said he’s against raising taxes,” said Rushman, who is the Executive Vice President of First Weber Group Realtors of Milwaukee.  “This is a tax increase pure and simple.  I think homeowners across Wisconsin will not be happy.”

According to WRA President Bill Malkasian, the current transfer tax is $498 on a median priced $166,000 home in Wisconsin.  Under the Governor’s plan, this tax will increase to $830.  “These costs cannot be financed through a mortgage,” says Malkasian.  “This tax must be paid in full, up front, right when a new homeowner must incur numerous other closing costs.  This will price many families out of their American Dream.”

In addition to its adverse impact on housing affordability, the Realtors also argue the tax is regressive and discriminatory since lower income households pay a larger percentage of their incomes on housing.  “Young families need affordable housing and a thriving housing market needs first time home buyers,” Malkasian said.  “When you raise this tax you raise the barrier to buying a home for thousands of Wisconsin families.  This is a bad idea for Wisconsin families, Wisconsin’s real estate market, and Wisconsin’s economy.”

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