Vote “YES” for the Protect Our Homes Initiative in November to Prevent Real Estate Transfer Taxes
The Arizona Association of Realtors and others have petitioned to bring to the voters an initiative called, “PROTECT OUR HOMES,” which aims to implement pre-emptive verbiage into existing legislation to prevent real estate transfer taxes. This is a very important measure for the long-term strength of our state’s housing market and for the American Dream of homeownership.
There are currently 36 states that have some form of transfer tax, which ranges from .1% to 2% of a property’s sale price. This really adds up and would have the effect of preventing many families from being able to afford a home. A 2% tax on an average $250,000 home equates to $5,000!
Once the tax is implemented, it can usually be raised by the city, county, or state at any time. And since the tax does not offset property taxes, it’s effectively double-taxation.
Throwing money at a problem is not the best way to solve it. Efficiency is. Rather than raising taxes (or implementing new ones) to throw at our existing budget deficit, we should focus on waste reduction and administrative efficiencies instead.
I can state with confidence that Phoenix real estate and Scottsdale real estate will suffer if a transaction tax is enacted. Tighter lending standards, poor savings habits, and uncertainty about the current real estate climate have already negatively impacted the pool of potential buyers and additional penalties, such as a transfer tax, will only further shrink the buyer pool.
Transfer Tax + Property Taxes = Double Taxation
Vote “YES” on November 4th to “PROTECT OUR HOMES!”