What is a transfer tax?

Submitted by ryanteaguebeckwith on April 13, 2007 - 3:19pm.
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Answer:

A tax levied by a county on all real estate transactions.

The tax is one percent of the sales price, or $1,500 on a $150,000 home. Technically, the seller pays the fee, though many pass it along to real estate buyers through higher prices.

No county can levy the tax without permission of the state legislature.

In North Carolina, Dare, Currituck, Chowan, Camden, Pasquotank and Perquimans counties have a transfer tax. Washington County can levy the tax with voter approval, which it has not gotten despite two referenda.

Other North Carolina home buyers already pay a transfer tax of sorts. The excise tax, which is split between the county and the state, is levied on all real estate transactions. The rate for that tax is two-tenths of 1 percent, or $300 on a $150,000 home.

A provision in the 2007 budget bill allowed counties to increase the excise tax to four-tenths of 1 percent, if voters approve in a local referendum.

In November, voters rejected the tax in referenda in 16 counties, including Johnston, Chatham and Union.

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Re: Ya mean like Enron?

Submitted by darveed on September 20, 2007 - 10:20am.

Yeah, sorry, the three largest groups opposed have spent more than the realtors. That was an N&O article a couple months back. And Wake County residents, at least, are not at all stoked about a vote. They may have a sneaking suspicion that it would be like being annexed, more cost with non-equivalent benefits in return.

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Yes, I am.

Submitted by Anglico on July 25, 2007 - 8:52pm.

As a person who believes the free market can't cure all ills, I see taxes as the appropriate way to pay for public services like sewer lines and water. I am in favor of giving local communities the right to say whether they want to be taxed or not. The realtors are fighting against our freedom to have those elections. Do you have something against democracy?

You're dead wrong about the lobbying money. Dead wrong because you believe the lies coming out of the North Carolina Association of Realtors. If you want to read the other side of the story, here are a number of posts to consider.

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Deleted and moved

Submitted by Anglico on July 25, 2007 - 8:51pm.

to the right place above

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Re: Ya mean like Enron?

Submitted by fuzbrown on July 25, 2007 - 7:29pm.

So you're in favor of another tax? You should check your facts - the non profits have spent over $1M to a little over $500K. In any event, it's politics as normal, tax and spend.

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Ya mean like Enron?

Submitted by Anglico on July 25, 2007 - 3:54pm.

Or Worldcom? Or Haliburton? Or Blackwater? Or Ford Motor Company, which lost more than a billion dollars in the last quarter alone?

You need to check your facts on lobbying spending. The "state" hasn't spent anything on campaign. Non-profit organizations have . . . and their spending is only a fraction of what the Realtors have spent.

According to recent polls, most taxpayers want the right to vote on this in local elections.

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Re: What is a transfer tax?

Submitted by fuzbrown on July 25, 2007 - 11:28am.

Why is there no mention as to the amount of tax payer dollars that the state is spending on their campaign for the tax? I believe the state has spent about twice as much as the Realtors.

I believe the politicians should trim the fat and run our state like a business. If the revenue is not there, cut somewhere else. This is a TAX that will ultimately be passed on to the homeowner in the form of a higher sales price. I believe the tax payers have sent a loud message on this issue - WE DO NOT WANT IT!

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