How a Missouri Real Estate Transfer Tax Could Impact You
We usually do not talk about politics or legislation in our blog, but this is something everyone needs to know. Whether you already own a home, or not, you need to know about a tax that already exists in 37 other states including Illinois, Iowa, Kansas and Arkansas.
It’s not come to Missouri … yet.
How would you like to pay a new tax when you sell your home? Please read on.
In an article published earlier in the year, Letty DeMay, President of the St. Louis Association of Realtors, shared the news about the real estate transfer tax. Here are some excerpts:
” A real estate transfer tax is a state or local government imposed tax collected when you transfer ownership of your home, land or commercial real estate. Once this tax is initiated, the rates can be increased at any time.
As Missouri struggles to find new sources of revenue, a real estate transfer tax could become a viable option for lawmakers.
The Missouri Association of Realtors” initiative is trying to prevent that from happening here, and here’s why:
As homeowners, we are obligated to pay property taxes, sales taxes and other fees. However, the transfer tax would be an additional tax the seller would be required to pay. MAR’s position equates this to double taxation.
According to MAR’s leaders, imposing such a tax would be devastating, particularly for those who are forced to sell their homes at a loss due to a job loss or other financial hardships.
This tax would not only apply to the sale of a home, but to the transfer of ownership as well. There are many small farms and homes that have been in families for generations. If a real estate transfer tax was on the books, a family member who inherits property through the death of a loved one would have to pay a transfer tax, even thought this same property has been in the family for years.”
The Missouri Association of Realtors is conducting a grass roots effort to change the state constitution to prohibit the use of real estate transfer taxes. They are trying to collect more than 157,000 signatures of registered Missouri voters to place an amendment on the ballot for the November 2010 general election.
Can you help? Go to http://yestosavehomes.com and find out more about this initiative and what you can do to help. Also, check out the Transfer Tax Calculator to see what it would potentially cost you.
Please talk to your friends and family about this initiative and ask them to get involved.
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