This site is about the overreaching political power of the NC Association of Realtors flush with money from cashing in your equity 6% at a time, leaving you to pay for growth with property taxes, year after year, with or without cash flow. In the last few years NCAR has pumped millions of dollars into NC political campaigns at the state and local level. They have spent millions more to defeat Local Options for Local Governments with misleading ads.

Friday, April 25, 2008

Land Transfer Taxes: The NC Experience

Policy brief from the NC Association of County Commissioners.

Land Transfer Taxes: The NC Experience

This policy brief draws on the experience of the six North Carolina counties with land transfer taxes. The success of these counties in utilizing this revenue source to provide high quality services to their citizens is attributable to two factors: 1) the stewardship of elected officials; and 2) the use of the proceeds to meet specified infrastructure needs.

Despite allegations from homebuilders and realtors, these counties have not suffered adversely from the implementation of these taxes. For each of these counties,

• home values remain affordable,
• job and retail growth remains robust,
• residential growth is vibrant,
• schools are benefiting immensely,
• property taxes remain stable.

These counties have benefited tremendously from the transfer tax because they have embraced three key principles: 1) taxpayer protection through tax limitation; 2) multipronged efforts aimed at Economic Development, 3) continuous monitoring of the effects of the local tax structure on citizens.
Adhering to the three Guiding Principles has allowed these counties to contend with the challenges of growth while simultaneously exhibiting sound fiscal stewardship.

1. Taxpayer Protection through Tax Limitation
2. Focus on Continued Economic Development
3. Maintain cognizance of total tax picture

It is evident that North Carolina’s experience with the land transfer tax shows this is a valuable tool for counties. Because the revenues have been targeted to infrastructure development and because officials have adhered to the principles above, concerns that transfer taxes inhibit growth, lead to skyrocketing home prices and unduly burden homeowners can be allayed.

A balanced approach to taxation clearly benefits elderly citizens and those on fixed incomes by lessening the pressure on property taxes. This allows these citizens to remain in their homes without fear of losing them to increasing tax rates or tax values.

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