Buyer closing costs in City of Pittsburgh (private school, income)

[gg]

Originally Posted by BrianTH

As has been discussed lately, large real estate transactions in the City have been finding ways to avoid the transfer tax (there are several loopholes under state law). Close those loopholes, and the City could potentially lower transfer taxes for everyone.

I don't know if people really want that or not? It is complex and not as simple as it may seem. Just a simple example would be if a developer is buying a multimillion dollar property in the city and is going to do great improvements to it and create lots of jobs. Can they work a deal so the developer can put the tax savings back into the development and in turn provide better long term use of the property which helps the city in the long run with future tax revenue, or do you hit them up with a 4% fee and risk the developer walking and taking his business to Columbus, OH or whatever, due to that huge bills the city is going to hit him up front with?

My opinion is they need the latitude to make sure they get the developer so not to lose him to another region. I post this just to provide an example why some of these things exist and not to be argumentative to your view. Just a difference of opinion and nothing more. Agree to disagree.

[BrianTH]

A generic tax loophole isn't very targeted for that purpose (encouraging new investments in properties). If you want to give more tax abatements for improvements, I'd support that. As previously discussed, I'd also support going back to getting more revenue from a land value tax in lieu of the improved property tax, which would have a similar effect.

[gg]

Ferlo targets state loophole on deed tax

Here is a link showing the loophole. Not impressive and not what I was hoping for. I would like to see such a thing being used for real development and improvement. Oh well, if there is a tiny crack in the door the attorneys of the big players will exploit it to the fullest. Just another mess. 4% of these purchases are one heck of a lot of money. Kind of mind blowing on big commercial properties. My opinion on this matter isn't really strong. It would take to long to dig into this stuff and not worth my time. The horns of the dilemma would be rather vast. Who has the time? Probably not even the law makers. 4% is too much though considering you can live just outside the city limits and pay 2%. City residents shouldn't be penalized to that extent. They already have to pay that huge wage tax.

[BrianTH]

Of course the City is also saddled with lots of non-profits, huge legacy costs being paid to out-of-jurisdiction beneficiaries, and out-of-jurisdiction commuters not subject to wage taxes (including two in my household, to be frank). All these loopholes and cash flows out of the jurisdiction explain why ordinary business and residents in the City face unusually high tax rates.

[hempfield mania]

Since the democrats have been in control of all facets of PGH city government for decades, it is a dem. vs. repub. issue within the city of PGH. You vote them in, that is what you get. Enjoy...

[gg]

Originally Posted by hempfield mania

Since the democrats have been in control of all facets of PGH city government for decades, it is a dem. vs. repub. issue within the city of PGH. You vote them in, that is what you get. Enjoy...

Your argument is rather silly because we are talking about one part of the city that could use some improving on. Considering Pittsburgh has been doing extremely well and continually on top of many great rankings of cities, I think it is safe to say we are enjoying. I might have a gripe on taxes, but as far as cities go, we are doing VERY well, so I guess we can thank the Democrats for that if we listen to your GOP rah rah speech. Guess we all have to thank them. Personally, I really don't care who is running the show as long as they do a good job. Rep's or Dem's mean nothing to me.

So I thank you for telling us to enjoy. We are very much enjoying and our great success! A huge thank you goes out to the folks that have been controlling our area over the past serval decades. Thanks for pointing that out to us.

[BrianTH]

All these issues have been influenced by policymaking at not just the City level but also the county, state, and federal levels over the past few decades. In that context, blaming just one political party is pretty silly.

Don't get me wrong--I believe a more vigorous competition in City elections would be a good thing, however that is achieved. But this partisan sniping is really just an excuse for letting politicians at other levels off the hook for the things they have done or are doing.

[Debbie1125]

The real estate transfer tax is the same in Philly. 3% goes to the city with 1% going to the state.

[hempfield mania]

My point is, if taxes were lower, PGH would be doing EVEN BETTER than it is now (more than just holding its own through the recession and the recovery).

And who controls the strings in Philly?

PS - I am not so much a Repub. as I am a Libretarian....Ron Paul, anyone?
Not much difference b/w the new order Repubs. and Dems. these days.

[Debbie1125]

Originally Posted by hempfield mania

My point is, if taxes were lower, PGH would be doing EVEN BETTER than it is now (more than just holding its own through the recession and the recovery).

And who controls the strings in Philly?

PS - I am not so much a Repub. as I am a Libretarian....Ron Paul, anyone?
Not much difference b/w the new order Repubs. and Dems. these days.

The only difference between Pittsburgh's and Philadelphia's transfer tax is no percentage goes to the school district. Also the school district here does not have as much power over assessments as it does in Pitt. Nonetheless, it is still extremely difficult to appeal an increase in property taxes.

I don't think much of the Democrats or Republicans either, which is why I am registered as an Independent.