This week the Legislature is considering a measure that would reverse a Realtor Association-sponsored bill that made it illegal for any municipality to charge a Real Estate Transfer fee - a fee that would be charged upon the sale or transfer of property. That measure, exempting Real Estate from being taxed at sale, was a significant reach by the Association. Realtors spent $5 million in advertising on the issue, and because it was 2012–a time when many had lost equity in their homes–voters passed it, and our Constitution was amended.
Since 2012, the valley of values, we've climbed steadily upward. While the median price of a home has ballooned since then (from $225,000 to $410,000), the number of folks experiencing homelessness and/or housing insecurity has also skyrocketed. The current measure, if passed, would collect a fee from the sale of property (exempting the first $500K). The money collected would be used to fund the construction or financing of affordable housing; helping to bridge the terrible divide that has evolved in our economy.
If it gets out of committee and passes, this bill will be sent to the voters to decide if they are ready to invest in solving our housing crisis. I am in favor of this new measure that would remove the Real Estate Transfer fee exemption from our Constitution. The amendment we made to our Constitution in 2012 limited the tools we have to address the urgent problems at hand. 37 other States have Real Estate Transfer fees or taxes, and studies show that these fees do not affect transaction decisions.
Being in favor of a tax is never a popular position, especially when it's a Real Estate related tax, and you're a Realtor. But, I believe it's time we accept the responsibilities–as well as the rights–of homeownership in a world where many are literally sleeping outside.