Basnight on Transfer Tax

Senator Marc Basnight recently issued this statement in response to inquiries regarding the passage of the transfer tax local funding option.

Thank you for contacting my office regarding your opposition to the so-called “Home Tax” or transfer tax. I appreciate hearing from you about this important matter.

As you may know, the North Carolina General Assembly recently provided counties with the authority to put a transfer tax on the ballot for consideration by voters. It is important to understand that this action does not impose a transfer tax in any community in North Carolina – it simply gives voters the opportunity to decide this issue for themselves.

I supported this policy because North Carolina is a fast-growing state with many diverse communities – some of which may decide that a transfer tax is the best way for them to build badly needed schools, roads and other critical infrastructure. Others may decide this kind of tax is not appropriate for their community.

I also supported giving this authority to local governments because my colleagues in the House of Representatives insisted that it be part of an agreement to provide relief for counties from the cost of providing Medicaid health coverage to their citizens. For many rural communities, the cost of the local share of Medicaid has grown so large that it prevented them from investing in schools and other essential services. Relieving counties of this burden was a major goal of the Senate; however, the House demanded that communities be provided the opportunity to consider a transfer tax as a condition of the approving a plan for Medicaid relief.

While the Senate held out for months on this issue, an agreement was finally reached: counties would be provided relief from Medicaid costs as required by the Senate and the transfer tax authority would be given to local communities at the insistence of the House of Representatives.

I hope this information is help in understanding this complicated and important issue. Please let me know if I can provide you with any additional information or assistance.

Sincerely,

Marc Basnight