transfer tax

It is generally accepted that the housing bubble precipitated the current recession. Easy access to money and low interest rates fueled housing inflation that made housing speculation profitable without growth in the underlying economy. In 2007 the Chief Executive of the National Association of Homebuilders acknowledged that overbuilding during the boom years was a factor in the housing meltdown.

That same year NC Realtors and Homebuilders fought tooth and nail at the Legislature to prevent counties from having a transfer tax option to pay for the infrastructure demanded by housing growth. Although unsuccessful at the Legislature in 2007 they have since spent millions to defeat transfer tax proposals at the polls in local referendums.

Proponents of the transfer tax argue that it relieves some of the burden of property tax by deferring it until a sale when cash flow is available, especially for existing homeowners on fixed incomes with over-inflated home values. Realtors and Homebuilders argued against it saying "Fight the Home Tax - It's a Bad Idea". Now faced with unsold inventories of speculatively built houses NC Homebuilders have turned to the Legislature for relief from "some of the burden of property tax by deferring it until a sale when cash flow is available."

House Bill 852, "Defer Tax on Builders' Inventory", has sailed quietly through the House, 106 votes to 8, and through committees, and is calendered for a Senate vote Wednesday July 8th, with little opposition expected. In fiscal years 2010-11 and 2011-12 combined this bill is projected to have a negative effect on county and municipal revenues of $40-$45 million.

With municipal campaigns coming up, what are your views on sustainable communities, sprawl, smart growth, and our approach to these things in North Carolina?

1. First, how do you define these terms? They're so broad at this point to be almost meaningless.
2. Second, how do you view sprawl? Where do you fall in the smart growth debate?
3. Third, what should we do at the municipal level, the state level, and the national level to build sustainable communities?

As it stands, while some affluent people are moving back into cities, there remains a huge divide between suburban and urban in America. Cities have higher taxes and less resources. How can we solve many of the problems facing America without mending this divide?

It looks like the transfer tax referendum was approved in Avery County today.

According to the State Board of Elections, with 19 of 19 precincts reporting the votes were 1,434 for and 1,409 against (50.44% for and 49.56% against). A total of 2,843 votes were counted out of 2,845 cast. Turnout was 22.40% of 12,700 registered voters.

As the County Commissioners appear to have wanted this authority it is likely to be put into effect.

From the statutes authorizing the tax:

If the majority of those voting in a referendum held pursuant to this Article vote for the levy of the tax, the board of county commissioners may, by resolution and after 10 days' public notice, levy a local land transfer tax on instruments conveying interests in real property located in the county, up to a rate of four-tenths percent (0.4%), in increments of one-tenth percent (0.1%).

According to Go Blue Ridge proceeds of the 0.4% tax are intended for classroom renovations and most land transactions in the last two years were among non-resident buyers and sellers.

Update:
There were errors in election night precinct reporting. The official results show 1,414 for and 1,449 against, which is a margin of 35 to defeat the transfer tax. At 49.39% for 50.61% against the margin is still less than 1%.

NC Realtor astroturf popped up yesterday in Gates County with no pretense of a local organization:

Meanwhile Ashe County Commissioners have decided to put the Transfer Tax to a referendum on May 6th according to the Jefferson Post

They're baaaack, realtor astroturf in Orange County:

This time it's Orange County.

Orange County residents have been on the receiving end of dubious push poll telephone calls recently, described by one recipient as:

...what may very well be the most egregious violation of research ethics I have ever experienced.

Why all the fuss? Tuesday evening, February 5th, at 7.30pm, the Orange County Board of Commissioners, at its regular meeting, will a public hearing regarding a Local Revenue Options Referendum. The purpose of the hearing is "to solicit opinion from voters regarding which, or both, of two local revenue options should be placed on a May 2008 referendum for voter consideration." In other words, they are trying to decide between a 1/4% sales tax or a 0.4% transfer tax increase, to pay for growth.

The Chatham County N.C. Board of Commissioners has addressed the need for more money for schools by increasing the school impact fees from $2,900 to $3,500, the maximum amount allowed.

If you're not familiar with Lyme Disease, you need to be. Because an epidemic broke out last night right here in the Old North State. In an orgy of greed sponsored by the North Carolina Association of Realtors, the Home Ticks spent upwards of $7 per vote to interfere in local elections, burrowing into the heart of North Carolina municipalities in an unprecedented display of crass self interest. They successfully undermined every local government Transfer Tax initiative, putting infrastructure at risk and increasing the pressure to raise property taxes throughout the state.

Make no mistake, the Ticks will stop at nothing to preserve their profits. You see, transfer taxes are a Trojan Horse that would wake up homeowners to the absurdity of their sacred 6% commissions.

(Updated with tags. Again.)