![]() The Legislature can, should, and does appropriate general fund money to deal with these issues. The tax feeds special funds as well as the general fund. But nobody ever said that one tax was supposed to solve those problems by itself. Then, the article argues that the revenue from the tax is not sufficient to fund either affordable housing development or conservation efforts. It is imposed on the full value of the property being sold, so it is less of a fit with the problems of which the article complains. The conveyance tax, of course, taxes neither the long-term gains nor the quick buck. Next, the article does not at all mention the existing capital gains tax, which would seem to address both “make a quick buck” investors and those who have built up gains over time. So, who do we need to deter, long-term or short-term? Or are we just opposed to all investment? The revenue collected by the state from this tax is insufficient to make real progress on either affordable housing development or effective resource conservation efforts.īy adjusting the real estate sales tax rates and lifting arbitrary caps on the amount of revenue going to affordable housing and conservation efforts, we can lower the cost of housing for residents without significantly impacting the average middle class local homeowner should they choose to sell.įirst, is there something wrong with doing financially well despite the pandemic so as to merit (or demerit) a tax hike? The article seems to then call out people who have seen their equity in property increase over a decade, namely long-term investors, but then asserts that the tax is needed to deter short-term investors who presumably drive up prices by flipping properties.They do not deter investors from using the real estate market to make a quick buck buying up the housing supply and, in some cases, flipping homes, driving up the cost of housing for locals and.However, our real estate sales tax policy has rates that are so low that: ![]() People who own property have seen the equity value of their property increase by huge amounts over the past decade. The real estate industry is one of the few sectors of our economy that has been doing well in spite of the pandemic and other economic challenges. Now, let’s take a look at one prominent proponent of conveyance tax hikes and its case, in a January 2023 blog post. The rest of the tax goes to the general fund. Today, 10% of the tax, up to $5.1 million, goes directly to the land conservation fund, and half of the tax, up to $38 million, goes to the rental housing revolving fund. ![]() The tax was raised in 20 to the level today. It remained at that rate until Act 195 of 1993 raised it to 10 cents per $100. The conveyance tax had its humble beginnings in 1966, where Act 10 imposed the tax at 5 cents per $100 of sales price.
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