Maine Increasing Real Estate Transfer Taxes.....A Lot!

By
Real Estate Agent with The Maine Real Estate Network

Currently, the state of Maine requires an equal division of the real estate transfer tax at closing to the tune of money$4.40 per thousand, shared equally between buyers and sellers.  It's not a horrific number, pretty average from what I can tell by looking at some other states. Boiled down, if you are either buying or selling a home that is priced at $200,000.00, then at the closing table, you will pay to the state of Maine about $440.00.

Maine is a great place to live, and I can't complain about much.  But....I do have a problem with what our esteemed representatives have decided to do.  It has been decided that all buyers and sellers will now cough up even more at the closing table to the state to alleviate our tax burdens overall.  The increase is 300%!  Here is a link provided by the Maine Association of Realtors that explains how this is happening: http://www.maineshakedown.com/ . The breakdown is as follows for primary homes:

If you are selling or buying a home for $200,000 or less, the transfer tax will now be $6 per thousand.

If you are selling or buying a home for between $200,000 and $400,000, the transfer tax will now be $8 per thousand. 

If you are selling or buying a home for between $400,000 and $1,000,000, the transfer tax will now be $10 per thousand.

If you are selling or buying a home for more than $1,00,000, the transfer tax will now be $15 per thousand.

For second homes, land, and commercial real estate, the transfer tax will now be $10 per thousand.

angry woman

It is important for us to contact our legislators and tell them how we feel about this.  It doesn't sound like much, but when buying a home is such an expensive endeavour, it just doesn't seem that we need to make it even more expensive.  Here is a link for you to find out who to contact - please do so! We work hard for our money.  http://janus.state.me.us/house/townlist.htm

Also, for the other real estate professionals out there, I would love to know how your state handles the transfer tax at the closing table.

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Liz Foley, The Maine Real Estate Network,207-651-6198

www.lizfoleysellshomes.com; mainelyliz@gmail.com

 

 

 

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Rainer
41,659
Liz Foley
The Maine Real Estate Network - Sanford, ME
Cheerfully serving your real estate needs!
Dennis - I just checked your profile - no wonder your name was familiar!  How are ya (besides peeved at the tax thing? You must live over on this side of the border).  Hope business is going well - take care!  And for those who haven't used them - these guys do a good job with their inspections!
Jun 10, 2007 10:24 AM #4
Rainer
6,929
Dennis Williams
HouseMaster of NH and ME - Rochester, NH

Hi Liz;

Yes I do live on this side of the border (Kennebunk) and I am ALWAYS peeved at Maines approach to taxation. I've made many contacts to "parties that matter" but I really don't get the sense that they are listening. They look at you, however their eyes tell you that they are somewhere else. I almost get the sense that they hear us as Charlie Browns teacher. Anyway, I'm doing well and look forward to another busy summer season. Hope all is going well and that you have a great summer.

Jun 11, 2007 10:04 AM #5
Rainmaker
86,091
Paula Henry
Home to Indy Team @ Sycamore Group Realtors - Avon, IN
Realtor - Indianapolis Real Estate - 317-605-4174

Liz - We do not have transfer tax here in Indiana - but our legislators increased property tax by about 25% in most areas here. It has made an impact on the movement of homes this spring. It is an incredible burden for those who need to sell and do not have the additional funds for the transfer tax. Buyers? They are just waiting for a deal and waiting to see what te tax will be. Good luck on the fight!

Congrats on being chosen a top 25 post this week!

Jun 16, 2007 07:06 PM #6
Rainer
41,659
Liz Foley
The Maine Real Estate Network - Sanford, ME
Cheerfully serving your real estate needs!

Wow - I had no idea this was "chosen"! Thanks so much - I really appreciate the plug,  Just an update - at this point the bill was passed, but we still have time to make changes with enough heat.  I have also discovered that New Hampshire has a rate of $15/1000 - yeah, it is more, but if we are going to increase, can we just do it gradually to we can get accustomed?  Huge jumps create huge impacts.

Paula - a 25% increase in property taxes is huge, as well.  It would definately create an issue with the movement of homes....and frankly, the movement is way slower than it has been - that sure can't help!  Thanks for the comment.

Jun 16, 2007 07:42 PM #7
Rainmaker
335,022
Ann Cummings
RE/MAX By The Bay - NH and Maine - Portsmouth, NH
Portsmouth NH Homes - Service With a Smile!

Hi Liz - I was sadly dismayed when this passed in the house.  The Senate, last I knew had not yet voted on it, unless I missed the latest update.  That picture at the bottom almost looks like Cindy screaming at this lousy taxation idea.

Congrats on the Week in Review feature!
Ann

Jun 16, 2007 08:19 PM #8
Rainer
41,659
Liz Foley
The Maine Real Estate Network - Sanford, ME
Cheerfully serving your real estate needs!

Thanks Ann - I'm not really clear on how to read the legislative report - on the 13th, the vote was 87 yes, and 49 no, with 15 absent.  However, it appears from this link that it may have been premature, as on the 15th it looks like it was tabled as "unfinished business": http://janus.state.me.us/legis/LawMakerWeb/summary.asp?ID=280025987

Thanks for the kudos! (Hey, how come all of a sudden I'm talking to others from your office?  Whatcha all doing, spreading your wings up my way? Or maybe I'm down your way more - just closed on a deal with Marcel, and have had 3 showings lately with Mitch....we do cover a bit of area, huh?)

Jun 16, 2007 11:06 PM #9
Rainmaker
335,022
Ann Cummings
RE/MAX By The Bay - NH and Maine - Portsmouth, NH
Portsmouth NH Homes - Service With a Smile!

Hi Liz - in the latest email from MAR, it read as though the Senate failed to vote on that bill.  Who knows how it will end up, but I hope it doesn't go the route as it's currently written.

In our part of the country, we do cover some areas, that's for sure.  I think in other parts of the country, they'd think we were crazy, but hey, this is our area to cover, or not!  Of course, most of our towns in this area are pretty small, so spread our wings we do!!

Happy Sunday!
Ann

Jun 17, 2007 07:21 AM #10
Rainer
133,547
Rick Beal
Coldwell Banker Residential Brokerage - Portland, ME

Hi Liz,

As I understand it, the senate is still trying to gather support for the bill.  Perhaps it will die, the overwhelmeing comments on web sites I read is negative.

Jun 17, 2007 07:31 AM #11
Anonymous
Anonymous
Anonymous

Washington state has an Excise tax on the sale of any property. In my county, and most around this area, that is 1.78% of the sales price. Part goes to the state, part to the county.

Our Association of REALTORS has been fighting against any expansion of this tax- to pretty much Excellent result. We have stopped a statewide Excise tax on the Buyers in the Legislature. (One or two Counties have added one for the Buyers though, through popular vote.)

We did it by raising a War Chest. Plain and simple, we assessed ourselves (members Washington REALTORS) about $150 per person last year.  Part went to a fund for a media blast against any increase in the REET (Real Estate Excise Tax). The other part went to a fund we can pull from if there is any emergency like that in the future,

It takes cash to fight these kinds of political battles. Good luck to all of you in Maine, to both you and your clients.

Jun 17, 2007 06:22 PM #12
Rainmaker
46,013
Sarah Nopp
South Sound, WA
Oops! I forgot to log in before I made that post! (The one from Washington State.) This is me :)
Jun 17, 2007 06:24 PM #13
Rainer
133,547
Rick Beal
Coldwell Banker Residential Brokerage - Portland, ME

I should probably let Liz have the glory to report this, but we just got an e mail to us from the Maine Association of REALTORS that states that the Mane Senate voted the tax reform bill down, a big win for the real estate market.

 

Jun 21, 2007 08:05 PM #14
Rainer
41,659
Liz Foley
The Maine Real Estate Network - Sanford, ME
Cheerfully serving your real estate needs!

wooooohooooo - Yippee!  I did just get that email - I am THRILLED!  Thanks Rick! Liz

Jun 21, 2007 08:12 PM #15
Rainer
58,906
Phillip Cross
TBD - In transition... - Seal Beach, CA
ePRO Realtor - Relocation Spec
Liz, I wonder if your post had anything to do with the vote?! Would be nice to think so... Great article. We have transfer taxes here in Maryland. Like most everyone I too hate taxes. I hate increases even more!
Jun 23, 2007 10:53 AM #16
Rainer
41,659
Liz Foley
The Maine Real Estate Network - Sanford, ME
Cheerfully serving your real estate needs!
Hey Phillip - I would like to think so, but my little pebble in the wave of outcries, I am sure, was pretty insignificant.....I was really thinking we were going to need to start our version of the Boston Tea Party up here!  I understand the need for taxes, I even understand an increase....I didn't understand the need to do it all at once!!  An incrimental change would have been oh, so much easier to handle! Thanks for stopping by
Jun 23, 2007 05:05 PM #17
Anonymous
Anonymous
kennebunkinsider.com

Nice blog Liz. I am glad this got shot down. - your fellow Buffini student.

Jul 08, 2007 12:47 PM #18
Rainer
13,550
Linda Peters
Salem Five Mortgage Company - York, ME

Hello All

I am new to AR and just found your post.  I am a LO with Countrywide (yes, we are still standing and moving forward)    I had no idea this was even proposed, and happy to hear it was voted down.   Finally someone in our esteemed Capitol had the wisdom to not make such a drastic increase.   We are a highly taxed State and it is time we became more fiscially responsible rather than raising taxes on everything and anything.     Our current housing market cannot absorb those kinds of increases.

Happy to have a site like this that collectively keeps us abreast of what is happening.   Thanks for the blog!

 

Linda

Oct 02, 2007 09:19 AM #19
Rainer
41,659
Liz Foley
The Maine Real Estate Network - Sanford, ME
Cheerfully serving your real estate needs!
I certainly was glad, too, Linda!  Welcome to Active Rain, and have fun with it! Liz  
Oct 02, 2007 04:39 PM #20
Rainer
41,659
Liz Foley
The Maine Real Estate Network - Sanford, ME
Cheerfully serving your real estate needs!

For crying out loud - spamming not appreciated!

Jul 19, 2009 06:14 PM #21
Anonymous
Anonymous
Mark Chaisty

Maine Voters:

One party taxes you to death and one party does not...

Stop whining and next visit too the polls let the tax drunk in Augusta hear your voice!!

Jul 31, 2009 10:58 AM #22
Rainer
41,659
Liz Foley
The Maine Real Estate Network - Sanford, ME
Cheerfully serving your real estate needs!

Mark, Mark, Mark, how the heck are ya?  My buyers are all settled and busy landscaping their new home - was good to do business with you!

Tax drunk????  Not sure about that one - I plead the fifth, but yes, voting is one way to make sure your voice is heard - guess that means you aren't taking your voice for granted!  See you on the next deal...Liz

Jul 31, 2009 11:52 AM #23
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Rainer
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Liz Foley

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