Car dealers have to be kicking themselves. “Why didn’t WE think of this,” they must be saying. The real estate industry wants voters on Tuesday to forever ban the use of a “transfer tax” in real estate deals. Thirty-seven states have transfer fees or transfer taxes.
The real estate folks who are thumping the tub for the no-transfer tax issue complain that it would constitute “double taxation” because people already pay property taxes on parcels they own and therefore should not pay what is, in effect, a sales tax when the property changes hand.
Bought a car lately?
You paid a transfer tax, a sales tax based on the purchase price. Later you’ll pay a personal property tax on that car. Double taxation, as the real estate people seem to define the situation.
And then you have to pay another tax, don’t you? You can’t drive that car if you don’t give the revenue department money for a license tag.
Take a look at your annual county property tax statement. See what else is listed as taxable. See what else you paid a transfer (sales) tax on when you bought it or them.
Looks like several special interests were asleep at the switch.
What other taxes that don’t exist should be prohibited?