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Raleigh, NC - Major debate over taxes on homes

By
Real Estate Agent with Keller Williams Preferred Realty

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.

Mike Jaquish
Realty Arts - Cary, NC
919-880-2769 Cary, NC, Real Estate

All good stuff, Keith.

The consequences will be a 1% increase in home prices, and a higher threshold for entry-level Buyers.

This is the worst type of Shut The Door Behind Me tax abuse.

Impact fees are awfully discriminatory and again will result in entry-level buyers having to spend more to get into a home. 

I support bond issues which defer some of the expense to the future arrivals, spread some to a guy like me who has been here ten years without paying impact fees, and some to folks who have been here longer and are enjoying nice appreciation from market activity.  Seems more honest than selecting and exempting a large number of people from ever paying a transfer tax or impact fee.

May 11, 2007 09:47 AM
Keith Pate
Keller Williams Preferred Realty - Raleigh, NC

Mike - I agree with you. The younger couples will be lucky to get into a larger home, the elderly will need every penny they have in equity to pay for long term health care. It is my understanding that in a few years in our market, the average first time home buyers will be able to afford a townhome - that's it.

 

May 11, 2007 01:59 PM