Monday, August 27, 2007

Last Minute Budget Deal Sells Out North Carolina Homeowners

As North Carolina State House and Senate Members grew weary and left to start their summer vacations, homeowners across the state got the short end of the stick. To wrap up session, the members struck a budget deal. Included in the arrangement was authority for all counties to place a .4% transfer tax and a 1/4% sales tax increase on their respective county ballots. Although most legislators stood firmly against such a land transfer tax, proponents of the tax made a strong argument for letting voters decide. NCAR and a coalition of groups fought off four statewide transfer tax bills and eleven county bills.

According to Wake County Manager David Cooke, there are no plans right now to place either question on the ballot in 2007. Durham and Chatham counties are expected to beat us to the punch with a ballot measure to include the transfer tax this fall. However, county officials may be shocked to discover that polling shows between 74-80% of likely voters oppose the transfer tax. The numbers only decline slightly when tied to school construction needs.
Although the Wake County Commissions have historically supported the sales tax as a more equitable taxing measure (that allows the capture of transient dollars), Commission Chair, Tony Gurley indicated that he would like to see both questions on the ballot.

By Raleigh Regional Association of Realtors News

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