Yes on 100 – Protect Our Homes
September 2nd, 2008
Categories:Real Estate News
While, Arizona currently does not have a real estate transfer tax, there is nothing that prevents a tax from being enacted at any time. With our current slow economy and budget crisis, it won’t be long before cities, counties, and the state start looking for new sources of revenue.
Enacting a real estate transfer tax is gaining momentum in Arizona. Just last year a bill was introduced in the state legislature proposing such a tax. Countless citizens’ commissions and county reports mention a transfer tax as a possible source of revenue for the state.
With the momentum for a real estate transfer tax growing, we must act now to put an end to this debate before it is too late!
Join us in passing a constitutional protection that will stop real estate transfer taxes. Click here to get involved today.
Vote YES to PROTECT YOUR HOME on November 4th!
F.A.Q’s
What is a Real Estate Transfer Tax?
A real estate transfer tax (RETT) is a state or local government imposed tax that is collected when you transfer ownership of your home, land or commercial real estate. Typically, once the tax is initiated, the rate can be increased by the state, county or city at any time.
Why are Transfer Taxes Proposed?
Too often, this form of taxation serves as a new source of revenue to balance a government’s bloated budget caused by overspending. Once this type of tax is put in place, no matter how low the tax rate is in the beginning, it always ends up being raised.
What are the Problems with a Transfer Tax?
- IT’S DOUBLE TAXATION!
Governments already collect taxes on your property based on the property’s value. This new tax would unfairly cause a second tax to impact your home or property. - DAMAGES YOUR EQUITY!
Since the tax is assessed against the total value including the amount you owe on your mortgage(s), the overall equity earned by the seller is decreased. - SLOWS AN ALREADY SLOW MARKET!
In the current slow market, a transfer tax would make it more difficult for people to buy or sell homes. Once a transfer tax is put in place, it can be raised at any time. This costs people buying or selling their homes even more money. - PUNISHES THE HOME OWNER!
A home is often the biggest and most important asset a person has in life. A transfer tax reduces the equity people have worked hard building. People already pay multiple taxes and fees on their homes. This tax will layer on one more significant closing cost you will have to pay. - IMPACTS LOWER INCOME THE MOST!
This tax imposes the higher tax burden on lower income households that typically spend a larger percentage of their income on their home.
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