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I would oppose the waste of money for a revaluation.
They will set a tax rate to get the revenue they think they can scrape up, regardless of the valuation they have affixed.
If they are going to get $2500 from me, why do I care if they take 2.5% of $100,000 or 5% of $50,000?
I wish I would have read your post, because that's what I was getting at in my above post Can't give you a rep point, have to spread some around...
I've lived places that had transfer taxes, but they still had property taxes. Wouldn't a transfer tax have to awfully high, though, to make up for the lost property tax revenue?
The NC Legislature approved the possibility of transfer taxes recently, allowing them to be adopted on a county-by-county basis (or, alternatively, a higher general sales tax). With intense campaigning by the realtor's association, ballot initiatives in those counties that attempted to implement the transfer tax were shot down. (But, I don't think they were offered in lieu of any property taxes - just in addition to them.)
The land transfer tax is not intended to replace but rather to reduce or offset property tax. There is nothing to prevent a land transfer tax from being used as a revenue neutral source of funding, regardless of whether or not it is advertised as "an addition to property taxes".
There is a big difference between an "additional source of funding" and "additional tax". I suspect that many people who are opposed to the LTT think of it as the later. But if used as a revenue neutral funding source, it would result in an overall reduction in the tax burden of individuals who do not intend to buy or sell a home for awhile. This is one reason why real estate professionals are opposed to the LTT; because it creates an incentive (albeit a small one) for homeowners to stay in their current home longer.
The land transfer tax is not intended to replace but rather to reduce or offset property tax. There is nothing to prevent a land transfer tax from being used as a revenue neutral source of funding, regardless of whether or not it is advertised as "an addition to property taxes".
There is a big difference between an "additional source of funding" and "additional tax". I suspect that many people who are opposed to the LTT think of it as the later. But if used as a revenue neutral funding source, it would result in an overall reduction in the tax burden of individuals who do not intend to buy or sell a home for awhile. This is why real estate professionals are opposed to the LTT; because it creates an incentive (albeit a small one) for homeowners to stay in their current home longer.
I figured I was opposed to a land transfer tax because of a few other factors, and never even considered that some folks may stay in their homes.
Well, shucks, I think I was right. I believe you have mispoken, at least regarding motivation you have ascribed to me as a real estate professional.
Last edited by MikeJaquish; 03-13-2009 at 07:35 AM..
I just got done reading an article how the new theme among tax payers is going to be to cheat. We have the head of our finance department a tax cheat and the head of the IRS itself too. Half of Obama's staff seemingly is under investigation for tax fraud and rather then being prosecuted, they are rewarded with top government positions.
With the bailouts, frivolous spending at both our local level and federal government, corruption, $118 billion in medicaid fraud annually per year, and so on.......why not join the crowd? It is the in thing to do.
Tie up Wake with contested tax evaluations, boggle down the IRS by challenging all deductions, maximize anything and everything you can. I plan to pay my taxes legally, of course, but I will challenge them in any way I can, if for nothing more then spite and will maximize anything and everything, taking advantage of any and all tax loopholes at the federal level. Util the corruption stops, I will fight them every inch of the way.
I paid my bills, paid my mortgage, worked hard and kept myself debt free. I'LL BE DAMNED IF THEY ARE GOING TO MAKE ME PAY FOR THIS CHIT!
People like us are now going to have to directly pay for other's mortgages, bank fraud and the corrupt official's salaries, $80 per hour auto factory workers, pension plans of private companies, DOT lavish hotel parties, Pelosi private jets, and so on.
Wake County re evaluates EVERY EIGHT YEARS. Based on the appreciation of the last SIX YEARS, the taxes were lower than they should have been. Now we play catch up.
Since Wake County won't re evaluate for another 8 years, who is to say that the current tax assessment won't be exactly right in 4 years???
I figured I was opposed to a land transfer tax because of a few other factors, and never even considered that some folks may stay in their homes.
Well, shucks, I think I was right. I believe you have mispoken, at least regarding motivation you have ascribed to me as a real estate professional.
Wow Mike, you must have read my post the second it was published. I added the words "one of the reasons why" immediately after I hit post.
Obviously many arguments have been used to criticize the land transfer tax.
For example, real estate professionals have publically criticized it by claiming that it will cause equity to be stripped from the seller and simultaneously cause homes to become less affordable. And they spent a lot of money trying to deliver their message to NC taxpayers.
Why the concern? Pure goodness of heart? Looking out for the best interest of Joe Homebuyer and Jane Homeseller? No. It’s because they see the tax as negatively affecting their industry.
But of course no special interest group can just come and say “Gee…I’m opposed to this because there’s a chance it might negatively affect my personal financial situation.” That would be too honest.
Oh, and when the NC Association of Realtors publically and resolutely opposes something, and someone states that realtors don't like that something in an argument, there's no need to take it personally. Obviously each individual real estate professional may or may not agree with the official position of the industry group.
Wow Mike, you must have read my post the second it was published. I added the words "one of the reasons why" immediately after I hit post.
Obviously many arguments have been used to criticize the land transfer tax.
For example, real estate professionals have publically criticized it by claiming that it will cause equity to be stripped from the seller and simultaneously cause homes to become less affordable. And they spent a lot of money trying to deliver their message to NC taxpayers.
Why the concern? Pure goodness of heart? Looking out for the best interest of Joe Homebuyer and Jane Homeseller? No. It’s because they see the tax as negatively affecting their industry.
But of course no special interest group can just come and say “Gee…I’m opposed to this because there’s a chance it might negatively affect my personal financial situation.” That would be too honest.
Oh, and when the NC Association of Realtors publically and resolutely opposes something, and someone states that realtors don't like that something in an argument, there's no need to take it personally. Obviously each individual real estate professional may or may not agree with the official position of the industry group.
I suppose if you had written more clearly that NCAR had a position based in lobbying and self-interest it may have been better than throwing a blanket over all real estate professionals. Many of us really don't care a whole lot about NAR or NCAR.
Constraining the churning of homeownership against my selfish interests is not "one of the reasons why" I opposed the Land Transfer tax. It is none of the reasons, actually.
I wholeheartedly support all legitimate home and real estate choices including long-term homeownership, quick turning of home ownership, renting as a tenant or landlord, and living with Mom.
Would you consider that there could be any legitimate reason to oppose the Land Transfer tax?
Last edited by MikeJaquish; 03-13-2009 at 10:59 AM..
Reason: against my selfish interests
Would you consider that there could be any legitimate reason to oppose the Land Transfer tax?
Of course there are legitimate reasons to oppose the land transfer tax. "There is potential that it will negatively affect the personal financial situation of real estate professionals" is one very good reason. But of course, I never heard that reason as I was subject to commercial after commercial in the Fall of 2007 about how the tax will "reduce the equity in my home" and "cause homes to be less affordable." Those commercials were paid for by NCAR. With money that ultimately came from me in the form of real estate commissions.
"There is potential that it will negatively affect the personal financial situation of real estate professionals" is actually a very silly reason, IMO, to oppose the transfer tax.
Houses will be sold. Good agents will make a living. They don't need to worry about a transfer tax hurting their income.
"There is potential that it will negatively affect the personal financial situation of real estate professionals" is actually a very silly reason, IMO, to oppose the transfer tax.
Houses will be sold. Good agents will make a living. They don't need to worry about a transfer tax hurting their income.
You might think it is a silly reason. I might think it is a silly reason. But I assure you the NCAR thinks it is a multi-million dollar reason. Literally.
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Can't give you a rep point, have to spread some around...
