Land Transfer Tax.......NOT!

By
Real Estate Agent

 

                                                                              www.itsabadidea.org

I dont know how it is where you are, but here the Land Transfer Tax is a huge issue! Knowing that this is a hot button issue within my area,  I went to our last county commissioners meeting where this issue was on the agenda to be addressed.  One commissioner out of the whole panel spoke intellegently and felt the Land Transfer Tax to be wrong, very wrong, and I AGREE!   Do you?   One of the commissioners was brazen enough, in packed room of citizens, to say, "well if they (buyers) can't afford this tax when they purchase a home then they can't afford to buy the home in the first place,".....and shouldn't be buying it is basically the gist of his continued ignorance.  

If you are yet to face this problem child, you probably soon will be! If it is already bombarding your area, what aare your thoughts on the issue?  I'd love to hear.

 

                  Check out the above website and send it to EVERYONE you know who opposes this tax!

 

 

Comments (23)

Paul Anyanwu
RE/MAX SOLUTIONS - West Orange, NJ
CRS, SFR, Broker-Salesperson, Sales West Orange,NJ
Yes i totally agree with Leigh Brown, it is bad for our business when the politicians are putting hands in pockets of sellers
Mar 29, 2007 04:44 AM
Leigh Brown
Leigh Brown & Associates, RE/MAX Executive - Charlotte, NC
CEO, Dream Maker - Charlotte, NC

We have state revenue stamps in the amount of $2/$1000 sales price, which is distributed between the state and the counties.  This would be a 1% tax on the sale price.  Exorbitant! (sorry to answer for you Tish, couldn't help myself-I am worked up over this stupid tax!)

Mar 29, 2007 01:06 PM
Bob Sloop, Consultant, Indianapolis, IN
RS Mortgage Consulting - Indianapolis, IN
Very Bad, thanks for sharing Tish, good for you, get the word out.
Mar 29, 2007 01:48 PM
Lisa Borders - REALTOR
RE/MAX Crossroads - Lincolnton, NC
RE/MAX Crossroads

On 100,000. sale this would be 1000.00, on top of the revenue stamps, per what they said in the meeting we went to.  I was in class today in Hickory, NC and they are wanting the same thing.  From my understanding today, this is for the State of North Carolina.  The North Carolina Assocation of REALTORS are mailing out information to try and stop this tax.  Please please sign and send back in when this comes in the mail to you.

Mar 29, 2007 02:03 PM
Tish Shaftner Mosteller
Lincolnton, NC

LEIGH - I understand about you being worked up over this beast!! So am I!!  We have educate and inform as much and as fast as possible!!!  Thanks for your comment.   LISA - thank you for the further explanation as well. 

LETS GO GET EM'!!!!

Mar 30, 2007 12:53 AM
Mary Strang
Viroqua, WI
In Wisconsin, the transfer tax is $3.00 per $1000 and paid by the seller.  At the time of closing, these funds go to the state. There are some pending plans at the state level to increase this tax to around $5.00.  It is a tax most sellers do not think about until they actually sell. In your area of Lincolnton, NC, is this the first time they are taxing this way? I think Transfer taxes are really a common type of tax in most areas.
Mar 30, 2007 01:27 AM
Matt Pendleton
Realty ONE Group - Las Vegas, NV
Las Vegas Real Estate
In Las Vegas, the real property transfer tax is $5.10 per $1,000 and is usually paid by the seller.  However, this transfer tax is negotiable in the deal (buyer can pay it).  Like Terry said, this tax has been around for so long in Las Vegas that nobody makes a big deal over it.  I was kind of surprised that the Land Transfer Tax was such a big deal to your community.  However, in all fairness to you, I would freak out if the County Commissioners imposed a new tax on me and I wouldn't care if somebody across the country had been paying the same tax for years.  Fight your fight Tish, I wish you luck.
Mar 30, 2007 11:54 AM
Rudy Baker
Century21 First Choice Realty - Burlington, NC
We already have revenue stamps in NC.  I believe what this tax is going to do is be in addition to that.  The current rate is $2/$1000... THis is something else..... Its another way to bilk consumers... Much in the same way that counties levee environmental impact fees... Just another way to extract money from the home owner or builder/developer.
Apr 01, 2007 02:37 PM
Anonymous
Fred Smith
I'm so glad the realtors are up in arms over this! Too bad you guys can't see the forest for the trees. Our state has billions of dollars of needs in infrastructure - schools, roads, water, etc. Having infrastructure in place makes our state an attractive place to live, which drives up real estate prices, which results in higher commissions for you guys! Ya'll should be supporting this and not fighting it. At least a local land transfer tax would go to providing for infrastructure needs in your community! If you let the state levy it, they'll take those dollars and spend them on things like teapot museums and the like that have no benefit to local communities.
Apr 21, 2007 05:53 AM
#12
Tish Shaftner Mosteller
Lincolnton, NC
While I understand where you're coming from Fred, there are other ways to generate the needed income.  There have been many options presented that will bring in just as much and some cases, more  money.  I dont know what commissioners or members of your town leadership believe, but the leadership here simply felt that even though they found at least one alternative that would bring in even more income to the community than the LTT, it was just easier to gain the income from LTT as opposed to a retail tax increase. I just can not go along with that, and condone that decision.
Apr 21, 2007 06:34 AM
Jen Walker
Realty Executives of Mid Missouri - Jefferson City, MO
Jefferson City, MO Real Estate

Currently in Missouri there is no transfer tax; however, it is being brought up by local legislators.  In addition to that, they are thinking about charging a 6% sales tax on individuals who provide professional services, such as lawyers, doctors, and Realtors.  I think that stinks!

Apr 21, 2007 07:26 AM
Jim & Maria Hart
Brand Name Real Estate - Charleston, SC
Charleston, SC Real Estate
Right now we don't have this land tax, and no one is talking about it.   But that doesn't mean that it won't come up in the future.  Thanks for bringing it to our attention.  I'm going to pass this on to everyone I know.
Apr 21, 2007 08:35 AM
Bill Somerset
Re/Max Realty Group - Dover, NH
ABR, e-PRO - Realtor - NH Real Estate Agent
We do have a transfer tax in both NH and Maine.  In NH it is $15 for every $1000 of the sales price, split between the buyer and seller!
Apr 26, 2007 12:58 AM
Duayne Weir
Investment Realities LLC/MarketLink Realty - Ham Lake, MN
Minnesota Real Estate Agent

Tish, great post way to get the word out, I'm with you and against any increase in land or property taxes. Tax,Tax,Tax, will it ever end!!

Good Day!! have a cup of java and a smile on me :)

Apr 26, 2007 10:48 AM
Rosemary Brooks
BMC Real Estate - 209-910-3706 - Stockton, CA
The Mother & Daughter Realty Team

Tish, I agree this is a bad idea and some of the other taxes, accessments and other ways to get money out of people to fund whatever.  I wonder sometimes where all the money goes and I think it is to put money in someone's pocket, if it is only to hire someone to keep up with the taxes and other money matters that we don't need in the first place.

 

It is a very bad. Good post.

Jul 08, 2007 04:46 PM
Cynthia Tilghman, Realtor® Onslow County NC Home Specialist
Kingsbridge Realty, Inc - Hubert, NC
Hi Trish,
It is a horrible idea and I have contacted my representatives and told them I think so.  Have all of you?  We must let our voices be heard loud and clear on this issue.  Thank you Trish.
Jul 09, 2007 12:32 AM
Joe Long
Waterstone Mortgage - Madison, WI
Purchase Perfect

We have one in Wisconsin and Governor Doyle has recently proposed doubling it.  I don't believe it has passed yet. 

Jul 09, 2007 12:53 PM
Joe Long
Waterstone Mortgage - Madison, WI
Purchase Perfect
The tax is proposed to double from $3 to $6 per thousand.
Jul 11, 2007 09:37 AM
Stacey Ward
Weichert Realtors Southern Coast - Ocean Isle Beach, NC

We our facing the home tax issue.  We are definitely opposed to the issue.  The economy is bad enough and real esate sales are down more than ever.  So far our local representatives are NOT supporting the extra tax, which is good.

Jul 13, 2007 05:44 AM
Anonymous
dbutler

I don't like ANY taxes, but it's true that residential development, especially the sprawling kind, puts a much larger burden on local governments than the additional revenue generated. And when property taxes become (by default) the primary vehicle for offsetting these costs, a disproportionate burden is placed on existing homeowners. The transfer tax shifts the burden to every buy/sell transaction. This is also unfair, in my opinion, since increased infrastructure costs are largely the result of sprawl. More rooftops = more schools, roads, sewer, fire/police (and much more).

A better solution for communities who are hooked on sprawl is the impact fee. Our town (in Arizona) recently passed a $4600 impact fee (paid by builders). The local homebuilders association actually supported the fee (after negotiating it downward from an even higher amount). I think they understood it wasn't a matter of tax or no tax. The money must come from somewhere. The challenge to any tax is to make it fair.

Local governments that already have impact fees understand this. Those that don't should be using impact fees to cover initial infrastructure costs and forget about a transfer tax. I've yet to hear a convincing argument for transfer taxes, in terms of fairness.

Jul 21, 2007 05:03 AM
#23