The other side of private transfer fees

Dennis Norman

Last month I wrote an article about private transfer fees drawing fire from the Federal Housing Finance Agency which cast private transfer fees in a negative light. Freehold Capital Partners, a company that, according to it’s website, partners with real estate developers to utilize private transfer fees (PTF’s) has come out in defense of the use PTF’s and show that they do benefit homebuyers as well as the community. Continue reading “The other side of private transfer fees

Private Transfer Fee Covenants Draw Fire From FHFA

Dennis Norman

Today the Federal Housing Finance Agency announce proposed guidance that would prohibit Fannie Mae, Freddie Mac and the Federal Home Loan Banks from investing in mortgages with private transfer fee covenants. Considering that covers the lenders that originate, invest in or, or insure over 90 percent of the homes in the U.S. that pretty much puts the kibosh on financing a home with such a transfer fee. Continue reading “Private Transfer Fee Covenants Draw Fire From FHFA

Missouri REALTORS Face Setback but Vow to Keep Fighting Double Taxation

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

Missouri REALTORS Make Progress Fighting Double Taxation

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.

Missouri Association of REALTORS working to prevent double taxation

Dennis Norman

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