Raleigh, NC - Major debate over taxes on homes

Raleigh, NC - Todays local paper, The News & Observer, has an article about a major debate over taxes on homes. 

WakeUp Wake County, a group that is in favor of having more limits on growth, has hired a well-known lobbyist to push for having up to a 1 percent fee on real estate transfers for school construction.

The N.C. Association of Realtors is opposed to the fee and have created an aggressive marketing campaign aimed at mobilizing public opinion to stop the proposed transfer fee. The association is paying for "Stop the N.C. Home Tax" yard signs, broadcast airtime and print ads in newspapers.

Tim Kent, the group's executive vice president said that this is a "tax on home sellers and home equity". Kent said that the transfer tax would price poor homebuyers out of the market and hurt young families trying to move into a bigger home or senior citizens who need the equity in their houses to finance long-term care. The real estate group also opposes school impact fees, saying the cost of new schools should be paid through budget cuts and property taxes.  

A poll of 800 people commissioned by the group showed 81 percent opposed to a land transfer tax.