ARIZONA REAL ESTATE TRANSFER TAX (RETT) - ONE MORE BURDEN ON TAX PAYERS
A few months ago, members of the Arizona Association of REALTORS® (AAR) received an informational mailing titled Support the No New Home Tax Ballot Measure. Did you read it?
Since this has come up in the past, AAR wants to stop the RETT, for good this time, by adding it to the November 2008 ballot.
For those who are not familiar with this type of taxation, following is some information from the AAR flyer.
Just what is a Real Estate Transfer Tax? A state and/or local tax or fee imposed on real property that typically, is assessed according to the sales price of real estate property, when transferred. Other states transfer taxes range from .001% to 2.2% and once initiated, the rate can increase to meet future legislative enactments.
Problems listed include:
Creates Double Taxation - Governments already collect taxes on your property based on its value. A RETT would be an additional tax impacting your home or property.
Damages Equity - The overall equity earned by the seller is reduced by a tax on the total value, including the amount you owe on your mortgage(s).
Impacts Lower Incomes - Lower income households typically spend a larger percentage of their income on their home. A RETT would impose a higher tax burden on teachers, police officers, fire fighters, health care workers, etc.
This website has more information and is definitely worth reading.
I would like our status on this list to remain as is. How about you?
One last thought, this affect buyers and sellers alike. In a buyers market, like we're in right now, the seller would be forced to take the hit. In a sellers market (think 2005) the buyer could end up being forced to 'pay' the tax. So, the price of a home will be affected no matter what the market is.
I'd like to know what others in Arizona, both REALTORS® and consumers, are thinking and feeling about the Arizona Real Estate Transfer Tax.
Also, if you are in a state or area that currently has a Real Estate Transfer Tax, please feel free to talk about what you know, think and feel about it.
Links to other articles and information about RETT.
SEVRAR members can pick up brochures at the office in Mesa.
graphics courtesy of iCLIPART