REALTORS® face Transfer Tax in Tucson!!!
For months now we have been talking about Proposition 100 and that by voting Yes, we can stop real estate transfer taxes once and for all. Now the Tucson City Council is talking about a 1% transfer fee for any new development in the City and it won't be covered by Prop 100 because it would be a "voluntary" deed restriction even though it would be a mandatory requirement imposed on all new development. It's time to contact the City Council and the Mayor and let them know what a bad idea this is. (Link to Star Article)
•· This would add another burden to our already shaky market.
•· Loss of equity. Since the tax is assessed against the total value including the amount you owe on your mortgage(s), the overall equity earned by the seller is decreased.
•· This is double taxation. We already pay a property tax on our homes
•· This would hurt low income families the most. A 1% tax would add an additional $2,000 on to a $200,000 home making it less affordable.
•· This would push development out of the city. By making it more expensive for home builders to build within the city limits we are going to push development out into the county and other neighboring cities and towns. We are going to spend more money on infrastructure to supply services to these homes and we are going to develop more land that is currently desert. Last, by pushing development out of the city we are going to loose the property takes and revenue that the new home and home owners would have produced
•· This will bring infill and development and annexations to a grinding halt.
The Tucson Association of REALTORS® is urging you to contact your city council members and let them know that as REALTORS® and as citizens of Tucson this is not what our community needs.
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