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8:45 a.m. • 2-11-12

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Realtors to pump $10M into transfer tax fight


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Transfer tax opposition sign
Transfer tax opposition sign

The North Carolina Association of Realtors has committed $10 million to its crusade against a tax on real estate sales.

Last year, state lawmakers gave counties two options to raise revenue to pay for growth-related needs like new schools, wider roads and extended water and sewer lines. One was a quarter-cent local sales tax, and the other was land transfer tax of 0.4 percent of the sale price of homes and land.

Voters in 19 counties overwhelmingly rejected the transfer tax at the polls in November and May – one county turned back the tax twice.

Despite its seeming unlikely to be approved, Realtors want the transfer-tax option taken away from counties, and they are banking a $10 million fund to accomplish that goal.

"It takes resources in order to educate the public about this issue, and the more the public knows about this issue, the less they like it," said Tim Kent, chief executive of the North Carolina Association of Realtors.

A bill that would repeal the tax option passed the Senate Finance Committee on Wednesday afternoon and appeared to be picking up momentum before a vote in the full Senate.

"Although it is a vote of the people, they don't like that hanging over them. Therefore, I think it needs to be repealed," said Sen. David Hoyle, D-Gaston, co-chairman of the Senate Finance Committee.

Armed with "Say No to the Home Tax" stickers, Realtors patrolled the hallways of the Legislative Building on Wednesday, courting lawmakers friendly to their cause.

A similar repeal effort failed in the House, but Realtors said they hope it will be revisited there.

"The craziest thing that you can do is add additional costs to owning a house," said Rep. Dan Blue, D-Wake.

The state association and its local affiliates spent an estimated $1 million in the past year for ads and lobbying efforts to fight the tax.

County advocates complained that Realtor money has already helped kill the tax option 20 times.

"I'm a little bit surprised that they are, in fact, using a nuclear bomb to kill a fly," Rebecca Troutman, government relations director for the North Carolina Association of County Commissioners, said of the $10 million war chest.

Without revenue options, Troutman said, delayed school projects will hurt the same people fighting the transfer tax.

"If these monies aren't in place to do infrastructure, that means you can't have the building boom that we've had in the past," she said.

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This realtor lobby is part of the problem, never the solution.

If I was a realtor I'd support the spending of the money if it meant more money in my pocket down the road. I work to make money. Business are in business to make money. The goal is to make more money than last year.

just another case of realtors thinking THEY are above everyone else!

Well, YOU ARE NOT!! Time for REALTORS to suffer some too! Especially since THEY are the ones, along with the elite builders, making money all the money on the rest of OUR misery!!!

Why don't you tell your clients the TRUTH about the MANDATORY schools and the imploding school system instead of covering it up or FLAT OUT lying about it!!!

What gets me is that the Orange County Commissioners said that the people were not educated enough to pass the tax.

What the county commissioners in all 100 counties don't understand is that they can no longer afford pet projects that waste money and have no return on investment.

They have long ignored the infrastructure of their own towns and cities and then say that they have to continue to annex in order to keep costs in line.

Excuse me? But you can not continue to annex, adding costs to your system and maintenance issues, and say that it is to fix your own cities problems.

That is assenine to believe that people living outside the city limits are the problem. No, living inside the city limits is the problem, and bringing them in ADDS to the problem.

But then again - the liberals who want a communist and socialist society where the government gives you everything don't see this kind of thing as a problem (though most of your failed socialist and communist are gone.)

"They are obviously making too much money if they can waste $10 million."

Waste $10 million? Get real, if they are willing to spend $10million you can rest assured they plan to make $50million profit from it.

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