One of the many propositions on this years Arizona ballot is Proposition 100. I was talking to someone recently about this and they said “Oh yes, I am aware of this and I do not want this tax so I will be voting no.” I quickly informed them that a NO vote could lead to a possible real estate transfer tax while a YES vote will protect us from one. YES means NO to double taxation.
What is Prop 100 all about? Well, basically the government collects taxes on our property each year based on its value. They would now like to collect a tax when the property is sold or transferred as well. Double taxation. This will just add to the difficulties we are facing in our current housing market. Currently there are about 35 states that have some sort of transfer tax which ranges from .1%-2%. So imagine that your property which has been on the market for 7 months finally gets an offer. You agree to sell at a loss since you have to move. The contract price is $500,000. The transfer tax could cost you between $500-$10,000. Here’s a quick form to calculate what you would owe if you lived in New Jersey.
Check out what is like around the country.
Please visit www.protectourhomes.com to learn more.
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