How Proposed Transfer Tax Increases Could Harm Raleigh Home Sellers… and Buyers

By
Real Estate Agent with Keller Williams Realty

StopHomeTax

What is the likely impact of a 200% tax increase on individuals selling a home in Raleigh?  Do you want to pay additional taxes when you sell your home?  Will the public benefit, or be harmed by such legislation?

In case this is news to anyone, let it be known that your North Carolina state legislators have seen fit to attach an increase in the property transfer tax to a Medicaid relief package that was recently approved by the House and Senate and supported by Governor Easley.  A transfer tax tied to a Medicare relief package?  Give me a break!  Is there anyone else who wonders what the heck one of these has to do with the other?!?!

StopHomeTax2The current transfer tax, that item on your closing statement called “revenue stamps”, is .2 percent of the sale price.  A $200,000 home currently has a transfer tax of $400, which is paid by the seller.  The proposed increase would raise this tax to .6 percent.  Under the proposed tax increase The same $200,000 home would now cost sellers $1,200.

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Comments (6)

Christopher Benedict
BIG Realty - Collegeville, PA
AskTheBigGuy
I wish I could empathise, but I am used to each side in PA paying 1% each...and it is all I have known for 9 years.  At .6% it is still a better bargain than here!
Sep 12, 2007 12:55 AM
Bob Fortner
Keller Williams Realty - Raleigh, NC
Raleigh Real Estate

Hi Christopher,

Thanks for your comments!   Each side pays 1%... yikes!  You're right that we have a very low transfer tax right now.  That's one of many things that has attributed to a really good performing market here in Raleigh over the years.  Our state lawmakers actually wanted a 1% rate, but they backed off to the proposed .6%.  Thank God for small miracles :-) Either way, a 200% increase is just plain silly!

Keep me in mind if you have anybody moving this way... and I'll do the same for anyone I have in the Philly area!

Sep 12, 2007 01:22 AM
Susan Trombley
Trombley Real Estate - Wake Forest, NC
Broker/Realtor, Raleigh, Cary, Wake Forest, Youngs
I have been on the band wagon to get this stopped but then I have found out it could go county to county.
Sep 12, 2007 01:57 AM
Larry Bettag
Cherry Creek Mortgage Illinois Residential Mortgage License LMB #0005759 Cherry Creek Mortgage NMLS #: 3001 - Saint Charles, IL
Vice-President of National Production
That is a hefty tax....I think that big brother gets too deep into the pockets.  it's not a stimulant either.
Sep 12, 2007 01:58 AM
Bob Fortner
Keller Williams Realty - Raleigh, NC
Raleigh Real Estate
Hi Susan - Be sure to keep up the good fight and continue getting the word out.  If voters are informed, my bet is they will deny this at the county level.
Sep 12, 2007 02:52 AM
Bob Fortner
Keller Williams Realty - Raleigh, NC
Raleigh Real Estate
You're right Larry.  It's just one more thing to drag on the industry, not to mention it's a tax INCREASE to all homeowners.  It's a shame when politicians use such methods to introduce taxes they hope most people won't understand and will let slip by.
Sep 12, 2007 02:59 AM