ARIZONA REAL ESTATE TRANSFER TAX,

By
Real Estate Agent with Homesmart ~ Scottsdale ~ Tempe

 

ARIZONA REAL ESTATE TRANSFER TAX (RETT)  -  ONE MORE BURDEN ON TAX PAYERS  

 

Arizona Real Estate Transfer Tax

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 RETTArizona Real Estate Transfer Tax 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. 

 

Real Estate TaxLinks to other articles and information about RETT

Protectourhomes.com

http://www.rallinow.com/

Real estate Lobby Pushing for ban on transfer taxes

Initiative would bar AZ tax on home sale 

FTA Bulletin

http://www.protectourhomes.com/files/shared/Key%20Points.pdf

http://www.protectourhomes.com/files/shared/Ballot-Highlights.pdf

 

 

SEVRAR members can pick up brochures at the office in Mesa.

graphics courtesy of iCLIPART

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Location:
Arizona
Groups:
Realtors®
Arizona Real Estate
Arizona Homes
Arizona Realtors
Silent Majority
Tags:
arizona real estate tax
real estate transfer tax
arizona association of realtors
protect our homes

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Rainer
213,039
Doreen McPherson
Phoenix Arizona Real Estate ~
Homesmart ~ Scottsdale ~ Tempe

OK Gene,  You are starting to really scare me! 

It does kind of prove the the environmentalist are not really interested in or concerned about the environment.  (disclaimer: I am NOT against protecting the environment and I believe we are commanded to do so by God.  BUT, I have a HUGE problem with some of the organizations and people that think they know it all.)

August 01, 2008 07:00 PM
Rainmaker
563,876
Mike Saunders
Lanier Partners

Gene - sometimes I am glad that I got out of Hotel California.

August 01, 2008 07:26 PM
Rainer
213,039
Doreen McPherson
Phoenix Arizona Real Estate ~
Homesmart ~ Scottsdale ~ Tempe

Mike,  'You can check out any time you like, but you can never leave'  :) 

August 01, 2008 07:32 PM
Rainmaker
224,999
Gene Wunderlich
Realtor & Legislative Liaison
1st Action Real Estate

Not sure if they're atill in business but there was a company operating out of Houston that would teach you how to set up your own private transfer tax such that every time your home re-sold you would get a check for a percentage of the sale. Can you imagine the impact that would have on the market if it were to catch on. It's amazing how individuals and government think you can increase revenue by making housing less affordable.

August 02, 2008 11:36 AM
Rainer
213,039
Doreen McPherson
Phoenix Arizona Real Estate ~
Homesmart ~ Scottsdale ~ Tempe

That doesn't sound legal...

August 02, 2008 02:36 PM
Anonymous
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Rainer
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Doreen McPherson

Phoenix Arizona Real Estate ~
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