Vote "Yes" on 3- Say NO to an additional 2-4% empty "transfer tax" on a Sellers closing costs. (Rea: short sales)

[CarrieNeno]

If you live in the State of Missouri, own a house, or are even THINKING about purchasing a house in the future... you MUST watch this video:

http://www.fox2now.com/videobeta/b6b...e-Transfer-Tax (http://www.fox2now.com/videobeta/b6b0bb5d-c693-4c40-a1fb-3e4e37d61b8b/News/Confusing-Vote-Coming-on-Real-Estate-Transfer-Tax - broken link)

The State of Missouri has the ability to add up to a 4% "transfer tax" to a Seller's standard closing costs. Amendment 3 will be put on the ballot in November to ensure that this does not happen. If Amendment 3 does not pass (and the State of Missouri opts to add a "transfer tax" to every sale within our state), it will have detrimental effects on our already-feeble real estate market and economy. Period.

When the real estate "bubble" burst a couple of years ago, it took with it thousands of dollars of equity from the average homeowner. In a real estate climate laden with short sales and foreclosures where inventory is at an all-time high, Buyers remain conservative, and Sellers are struggling to walk away from their properties with any cash in their pocket after inspection predications and standard closing costs ... an additional 2-4% fee at closing would be devastating. On an average $200,000 sale, that is 8K of YOUR home equity going to the Missouri government in taxes. Period.

I beg that you vote "YES" on Amendment 3 in November and that you spread the word about this initiative. It is vital to the continued growth and rejuvenation of our local economy and real estate market. If it doesn't pass, it will affect all of us in a negative way. No one in the State of Missouri will be immune.

[lifelongMOgal]

Since the OP, for some reason, chose not to link the actual ballot initiative here it is:
SOS, Missouri - Elections: 2010 Approved Initiative Petitions

[marigolds6]

I've asked these questions of a few supporters and have yet to get a straight answer:
Is there a current transfer tax anywhere in Missouri? Have there been any bills proposed to create this tax? Has any member of the State legislature proposed a transfer tax?
Why is this being proposed as an amendment instead of a law?
How exactly does the state have this ability to impose a transfer tax? Why is it limited to 4%? Why is the tax restricted from being imposed on the Buyer but not on the Seller? And why does the amendment bar applying the Fair Tax to new housing (which makes it a lot more difficult to pass the Fair Tax, since it would have to be about 12% higher then)?

[lifelongMOgal]

I think the idea is to nip the opportunity to place a transfer tax on housing in the bud, before it has an opportunity to happen. Since we pay property tax annually it does seem like over taxation to tax it yet again additionally at the time of transfer. YMMV.