Transfer Taxes: round 2 is coming to a county courthouse near you
The battle over the transfer tax did not end with the close of the legislative session. In fact, for some folks, it is just getting started.
The tax, as you might recall, would allow counties to impose up to a 0.4 percent tax on the transfer for real estate - over and above the 0.2 percent they charge now.
My colleague Nate DeGraff detailed the Guilford County commissioners resistance to the idea, but that didn't stop a letter writer today from speaking out:
If voters approve the transfer tax, it would increase the seller's tax over the current deed stamp revenues by 0.4 percentage points, or from 0.2 percent to 0.6 percent. It could be really chaotic if some counties approve the transfer tax and some don't.
The realtors' effort to kill the transfer tax at the state level was well funded and organized. There's no reason to think efforts at the local and regional level won't be just as earnest. And in fact, a "thank you" message on their site reads:
So we need your help again. It's now time for all of us to stand up to the politicians in our local communities who want to tax our homes and send a message that this home tax is a bad idea. Stay tuned to our web site, as we continue to spread the word across the state--- and in your back yard---to stop the Home Tax!
The fight isn't over, the battle is just shifting to the counties. My guess is that you're going to see this thing replayed in miniature (or not so miniature, depending on the size of your county) a few dozen times over during the next year, particularly when counties begin construction of their budgets in early Spring.
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The transfer tax will gain political viability when it's time to fund capital improvements like new schools and there is no alternative but to raise property taxes. The realtor's emotional, hot button media campaign is hard to counteract using mere facts. So it's not surprising that most politicians plan to distance themselves from being "home tax" supporters. The only reason to take such a risk against a well-financed special interest is if people in the community start asking for funding alternatives. Let's hope a few hardy and discerning Greensboro citizens start that process.
Posted on August 13, 2007 3:27 PM