Ralph Nudi (Right) Testifies before the Wisconsin State Legislature's Joint Committee on Finance
Tuesday I testified before the Joint Committee on Finance. I waited for five hours to speak for 3 minutes. I was astounded at the fact that State Senator Lena Taylor (who was moderating the hearing) consistently gave extra time to every special interest group in Milwaukee County that was in favor of the Transfer Tax increase & the Tobacco Tax increase and/or had their hand's out for more taxpayer money for whatever their pet cause was.
Below is a transcript of my testimony:
"Chairpersons Decker and Rhoades, ladies and gentlemen of the Committee, Today I am here to speak about an issue that is currently on the budget proposal. I know your time is valuable so I will be brief.
I have done some research and do not recall, nor can I find in either the Governors or any of your campaign's statements, anything claiming that Wisconsin Property Owners pay too little in taxes. That being said, I believe most property owners would be shocked at the proposed 100% increase on the Real Estate Transfer Tax.
I would like to summarize MY opposition to this, or any such increase with four points.
#1 - Over the past several years the state has decreased the cost of processing transfers by automating the process. Based on that rationale this state should be passing that savings on to property owners, instead of investing new ways to spend more of our hard working home owners money.
#2 - Property values typically increase at a rate of 2-3 times the rate of inflation. This means there is an automatic increase built in to the transfer tax. To double the rate effectively meand to exponentially increase the already built in increase.
#3 - In Kenosha County (where i currently live and work as a Real Estate professional) the averagehome price is nearing the $200,000 (two hundred thousand dollar) mark. This additional fee makes it harder for Wisconsins working people to sell their homes and move up to a larger home for their growing families
#4 - The current housing market, both nationally and state wide is going through a difficult period. Doubling the transfer tax further burdens the market place, making recovery and a transition back to a healthy, thriving real estate market more difficult. This will affect both property values and the number of transactions. Less transactions and lower property values ultimately means less money collected on property and transfer taxes.
In summary, the impact of doubling the fee will be bad for homeowners, bad for the real estate market, bad for economic development and bad for Wisconsin."
IF you are a Wisconsin property owner, please EMAIL or write your legislators and the Joint Chairpersons of this Committee, Decker and Rhoades. This is an important issue and we need to STOP the MONEY GRAB going on in Madison.
Ralph D. Nudi