Death of Home Tax?

You can call it the Land Transfer Tax. You can call it the Home Tax. Or you can just call it a dead duck.



When an idea gets overwhelmingly rejected in 16 counties, as the home-sale tax did last Tuesday, its time clearly has not come. And won’t anytime soon.



Realtors and Homebuilders spent $800,000 to beat the tax. But the county commissioners didn’t fight back. They didn’t give voters the information they needed – and deserved. Like why the money is needed, where it would go and why this tax.



Voters will vote to spend money and raise taxes. But only on three conditions: They see the need, they see where the money will go and they’re assured it won’t be wasted.



The commissioners met none of those conditions. So they passed none of the referendums.



Now the counties have a bigger problem. If the Realtors and Homebuilders are ruthless enough, they will go back to the legislature. And push for repeal of the tax.



It passed in the 2007 legislature only because it was rolled into the budget. And the opponents didn’t target legislators who voted for it.



This time the tax opponents may play hardball. 2008 will be an election year, and the legislature will meet in May. The opponents may tell the Senate: the tax must go. Or we go after vulnerable members – and your majority.



My guess is this Senate will go along, and the tax will go away.



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Gary Pearce

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Death of Home Tax?

You can call it the Land Transfer Tax. You can call it the Home Tax. Or you can just call it a dead duck.



When an idea gets overwhelmingly rejected in 16 counties, as the home-sale tax did last Tuesday, its time clearly has not come. And won’t anytime soon.



Realtors and Homebuilders spent $800,000 to beat the tax. But the county commissioners didn’t fight back. They didn’t give voters the information they needed – and deserved. Like why the money is needed, where it would go and why this tax.



Voters will vote to spend money and raise taxes. But only on three conditions: They see the need, they see where the money will go and they’re assured it won’t be wasted.



The commissioners met none of those conditions. So they passed none of the referendums.



Now the counties have a bigger problem. If the Realtors and Homebuilders are ruthless enough, they will go back to the legislature. And push for repeal of the tax.



It passed in the 2007 legislature only because it was rolled into the budget. And the opponents didn’t target legislators who voted for it.



This time the tax opponents may play hardball. 2008 will be an election year, and the legislature will meet in May. The opponents may tell the Senate: the tax must go. Or we go after vulnerable members – and your majority.



My guess is this Senate will go along, and the tax will go away.



Click Here to discuss and comment on this and other articles.

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Gary Pearce

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