Saturday, May 2, 2009

Real Estate Transfer Tax

A real estate transfer tax (RETT) is charged at that time a property is sold. While our city, county and state governments are not currently considering a RETT, it has been the topic of revenue enhancing proposals in the past. With our governments running deficit budgets these days, the RETT is likely to rear its ugly head again.

What's wrong with a RETT? Plenty. We already pay property tax. This would be double taxation. It is only charged to property owners who sell, so it is discriminatory. It reduces a seller's equity, and is a further impediment to selling. As if sellers need any more challenges in this market!

The Arizona Association of Realtor is currently collecting signatures so a state wide ban on RETTs can be put on the November ballot. They need 230,000 signatures by early July. We won't know the proposition number until the signatures are validated.

Once we know the proposition number, we will be spreadng the word to vote YES. A yes vote will prohibit state, county and city governments from ever imposing a real estate transfer tax.

For more information, go to No New Tax On Our Homes.