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Old 09-30-2010, 12:30 PM
 
Location: St Louis, Missouri
419 posts, read 1,238,560 times
Reputation: 160

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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/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.
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Old 10-01-2010, 08:28 AM
 
Location: St Louis, MO
4,677 posts, read 5,287,064 times
Reputation: 2972
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?
If not, it is ridiculously to suggest amending the State Constitution to "fix" a problem that does not exist. That is a bad precedent. Put this up as a law instead of a Constitutional amendment and I would support it, but not as a Constitutional amendment.
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Old 10-01-2010, 08:37 AM
 
Location: St Louis, MO
4,677 posts, read 5,287,064 times
Reputation: 2972
Quote:
Originally Posted by CarrieNeno View Post
The State of Missouri has the ability to add up to a 4% "transfer tax" to a Seller's standard closing costs.
Related to this, how does the state have this ability? Why is it limited to 4%? Why is the tax restricted from being imposed on the Buyer but not on the Seller?

And the big question, why does the amendment bar the Fair Tax too?
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Old 10-01-2010, 08:54 AM
 
Location: Tower Grove East, St. Louis, MO
12,063 posts, read 29,534,765 times
Reputation: 3777
Good questions that I'd certainly be curious to here the answers to. I haven't heard much of anything about this issue.
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Old 10-01-2010, 09:54 AM
 
Location: St Louis, Missouri
419 posts, read 1,238,560 times
Reputation: 160
Missouri is only one of 13 states that does not levy any form of transfer tax on real estate transactions. Amendment 3 is merely a preemptive strike against an attractive big government tax and potential source of revenue for our State in lean times. Real Estate transfer tax is a rule not an exception in the US.

I speak only as someone who works in the trenches every day. I, firsthand, see the devastating effects that the economy has had on the real estate market. The bulk of Sellers are getting out of their properties by the skin of their teeth, a thousand or two from being forced into short sale/foreclosure. Even those who purchased long BEFORE the boom are in trouble. No one is immune. A huge percentage of our city, is down 30+% in market value. Many places, even more… so there is little equity to work with, as it is.

The mere possibility of Missouri instating ANY level of tax that is already prevalent throughout the rest of the US in the midst of the current financial climate should horrify ANYONE who owns a home. As a professional in the industry, I can assure you that such a tax, SHOULD it be instated (and I realize that is a capital SHOULD), would 100% paralyze our already feeble market. As a homeowner, I am all for a vote to prevent double taxation on my own properties, plain and simple. This amendment merely head off the temptation of the State to implement one to help remedy the State debt.
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Old 10-01-2010, 10:00 AM
 
29,985 posts, read 40,216,905 times
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Ok, here is the specific 2010 ballot initiative brought up by the OP so we can read it:

http://sos.mo.gov/elections/2010petitions/2010-046.asp
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Old 10-01-2010, 10:23 AM
 
Location: Tower Grove East, St. Louis, MO
12,063 posts, read 29,534,765 times
Reputation: 3777
Thanks to both for some clarification.
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Old 10-03-2010, 04:41 PM
 
Location: St Louis, MO
4,677 posts, read 5,287,064 times
Reputation: 2972
While I appreciate the comments, that answer none of my questions.
Why is this being proposed as a Constitutional amendment instead of a law?
Are there any current plans to implement such a tax? Have there been any bills proposed to implement it?
Why does the State apparently already have an ability to impose a tax up to 4%? What do they have to do to impose it? Why is the tax restricted to Seller's instead of Buyer's? If it is restricted to 4% right now, can't a law just be passed to restricted it down even lower, like 0%?
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