By Dennis Norman, on November 3rd, 2010  Dennis Norman In a loud and unified voice, 83.7 percent of the voters yesterday voted in favor of Missouri Constitutional Amendment 3, the ban on future transfer taxes or fees on real estate in Missouri. In a huge victory for Missouri property owners, this effort, spearheaded, and funded in a large part, by the Missouri Association of REALTORS, insures that Missouri remains free from this tax that many, including yours truly, consider a form of double taxation.
Missouri is one of only 13 states in the U.S. that do not have a transfer tax imposed at the state or local level on the transfer of real estate. While some of these taxes or fees are less than 1 percent, in some areas, such as Philadelphia, these fees can be as high as 4 percent of the price of the property.
By Dennis Norman, on October 1st, 2010 Dennis Norman I just returned from the Lake of the Ozarks after attending business meetings for the Missouri Association of REALTORS (MAR) which included an update on AMENDMENT 3, the effort backed by MAR to prevent double taxation on Real Estate in Missouri. The “update” was more like a football rally, complete with “cheerleaders” and all and, while the fanfare was a little over the top for me, I was thrilled to see so much enthusiasm by REALTORS from across the state over this issue. Continue reading “REALTORS Rally to promote a YES vote on Amendment 3“
By Dennis Norman, on August 31st, 2010 Dennis Norman Earlier this month I wrote about a set-back in an effort to give Missourian’s a an opportunity in November to prevent the possibility of double taxation by voting to pass a constitutional amendment prohibiting transfer taxes or fees on the transfer of real estate. The effort, which had the full support and backing of the Missouri Association of REALTORS, hit a road block when the Secretary of State’s office did not certify that enough signatures were obtained to put the issue on the ballot in November. Continue reading “Court rules in favor of group working to prevent transfer tax“
By Dennis Norman, on August 19th, 2010 Dennis Norman A new study released by Bankrate, Inc. shows that the costs associated with buying a home are on the rise. Bankrate’s 2010 Closing Costs Survey states the average origination and title fees on a $200,000 mortgage this year totaled $3,741, up 37 percent from $2,732 in 2009.
The good news for us Missourians is that our state had the ninth LOWEST costs associated with buying a home. Missouri’s average cost is $3,356 which is over 10 percent below the national average. New York, with average costs of $5,623, had the highest costs in the nation. Continue reading “Missouri is Ninth Least Expensive State to Close on a Home“
By Dennis Norman, on August 3rd, 2010 Dennis Norman Previously I have written about an effort supported by the Missouri Association of REALTORS (MAR) to protect Missouri homeowners from facing double taxation through a real estate transfer tax by backing an effort to amend the Missouri Constitution to prohibit such a tax. Unfortunately, after Missouri citizens supported this initiative in overwhelming numbers, the effort was dealt a blow today when effort by the Missouri Secretary of State’s office announced its conclusion that the Vote “YES” To Stop Double Taxation amendment did not receive enough signatures of registered voters to qualify for the ballot. Continue reading “Missouri REALTORS Face Setback but Vow to Keep Fighting Double Taxation“
By Dennis Norman, on May 11th, 2010 Dennis Norman UPDATE – May 17, 2010 – THANKS TO MISSOURI LAWMAKERS (and the efforts of the Missouri Association of REALTORS and St. Louis Home Builders Association, readers of this post that responded, and others) THE MECHANICS LIEN LAW PASSED! ASSUMING THE GOVERNOR SIGNS IT INTO LAW FINANCING ON NEW HOMES AS WE KNOW IT HAS BEEN PRESERVED!
This week, which is the last week of the legislative session in Jefferson City, the Missouri Senate will probably take up debate on HB 2058, which is a bill that makes needed changes to the Mechanic’s Lien Statute in Missouri and has already been passed by the House of Representatives. At a time when we are just now seeing some relief to the “real estate recession” we don’t need another blow to the industry and homeowners, which is exactly what will happen if this legislation is not passed this week.
Without HB 2058 New Home Financing As We Know It Will Be Gone
Over the past three years or so, since the real estate bubble burst, we have had a crisis develop in Missouri with regard to Mechanic’s Liens. Title Insurance companies have been overwhelmed by claims made as a result of contractors, sub-contractors and suppliers having not been paid for work done on new homes. During this period flaws in the current Mechanic’s Lien statute have become apparent and need to be changed.
The Missouri Land Title Association has worked to get such changes made in an effort to encourage title insurance companies to continue to offer Mechanic’s lien coverage so borrowers may continue to obtain long-term, fixed-rate mortgages (in which lenders require mechanic’s lien coverage) on new homes. Without such legislation title insurance underwriters have threatened to cease offering mechanic’s lien coverage on new homes.
Highlights of the bill:
- Contractors, Sub-Contractors and suppliers would continue to have the right to file mechanic’s liens to assure they are paid for the labor, services and materials however it would require them to file a notice of rights within 60 days to preserve their lien rights. This would give everyone (homeowners, lenders, title insurance companies, etc) adequate notice to be aware of the potential for a claim and helps identify that claim prior to the closing of the sale so the obligation can be satisfied at closing.
- Would require a “Final, Unconditional Lien Waiver” by which a contractor, subcontractor, or supplier may release their claim to the home itself, thereby protecting the homeowner, without giving up their rights to collect money they are still owed by the builder or developer.
- Would protect the new home purchaser from claims for unpaid work from anyone that did not record a Notice of Rights as required. This will assure that the new home buyer does not get surprised afterward by learning they must pay money to a contractor or company they have never heard of simply because the builder didn’t pay them.
The Industry Supports the Bill:
This bill has the support of the Missouri Association of REALTORS, The Missouri Land Title Association as well as the Home Builders Association.
What You Can Do to Help:
If you would like to assure that good financing will continue to be available for new homes, and to protect the rights of the new home buyer then please call your state senator today and encourage him or her to support HB 2058, or you can simply click here and send a message to your Senator by simply filling in your name and address on the form.
By Dennis Norman, on May 3rd, 2010 Dennis Norman Last October I wrote about an effort by the Missouri Association of REALTORS (MAR) to protect Missouri homeowners from facing double taxation through a real estate transfer tax by backing an effort to amend the Missouri Constitution to prohibit such a tax. To get the issue on November’s ballot, petitions with signatures from a requisite number of Missouri voters needed to be submitted to the Secretary of State by yesterday.
Today, the Vote YES to Stop Double Taxation Committee, announced that on Sunday it turned in petitions, signed by “tens of thousands of registered voters”, to the Secretary of State for review.
“In overwhelming numbers, Missouri citizens supported through their signatures putting into our State Constitution an assurance that the sales of homes and other real estate won’t be subjected to paying taxes twice on the same property,” said Elizabeth Mendenhall of Columbia, spokesperson for the Vote YES to Stop Double Taxation Committee.
“Thanks to the signatures of so many thousands of our neighbors, Missouri is a step closer to banning bad public policy that denies fairness and defies common sense,” added Mendenhall, who is also president of the 22,000-member Missouri Association of REALTORS®.
Transfer taxes on home sales are double taxation because Missourians already pay annual property taxes on real estate, often over many decades of ownership. Missouri is among just 13 states that do not impose a transfer tax on real estate sales, including all of Missouri’s neighboring states. As state, county and city revenues decline, politicians are tempted to impose new transfer taxes – just as Missouri citizens are struggling to make it.
“This unfair double taxation can happen in Missouri under current law. We are asking voters to keep politicians from penalizing Missourians with such a bad tax policy,” Mendenhall said. She led supporters on Sunday as they turned in petitions signed by citizens from across the state to place the proposed state constitutional amendment on November’s general election ballot.
The proposed state constitutional amendment’s language is straightforward and simple: “Shall the Missouri Constitution be amended to prevent the state, counties, and other political subdivisions from imposing any new tax, including a sales tax, on the sale or transfer of homes or any other real estate?”
The Secretary of State will now work with county election officials to verify the petition signatures. Once the required number of signatures are verified, the proposal will secure a place on the November statewide ballot and will be assigned an amendment number.
Voters are encouraged to visit www.YesToSaveHomes.com to learn more about the proposal to stop double taxation.
By Dennis Norman, on October 24th, 2009 A new Web site provides Missouri voters with information about a proposed state constitutional amendment barring politicians from imposing double taxation on sales of homes and other real estate.
I would encourage Missouri residents to visit www.YesToSaveHomes.com to learn more about the proposal.
Continue reading “Web Site Launch Promoting “Vote YES to Stop Double Taxation”“
By Dennis Norman, on October 6th, 2009 Dennis Norman By: Dennis Norman
According to a report prepared by the Federation of Tax Administrators (FTA) in 2006, thirty-five states plus the District of Columbia impose a real estate transfer tax. What a transfer tax amounts to is when you sell or transfer a house (or other real property) you pay a tax to the state on the sale ranging from a low of 0.01 percent in Colorado to a high of 2.2 percent in the District of Columbia.
In addition, in some states (Delaware, Maryland, Michigan, New Hersey, Pennsylvania, Washington and West Virginia) some of the localities impose a tax in addition to the State transfer tax. In California, Louisiana and Ohio real estate transfer taxes are imposed only at the local level. Continue reading “Missouri Association of REALTORS working to prevent double taxation“
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