There seems to be continued denial among some in Raleigh that a real estate transfer tax taxes actual people.
All I know is that we twice sold property in Maryland and we twice had to pay thousands at closing in transfer taxes. We twice purchased property; paid the tax twice more. I’d have to pull the papers, but I’d say at least $10,000 in tax was paid that way.
The money did not come from realtors, it did not come from developers — it came out of one family’s pocket. Two families, actually, as Maryland real estate taxes are so high that it has become the custom for buyer and seller to split what is, after all, a transaction tax on their transaction. Yes, four transactions generated about $20,000 in tax for the state.
Such taxes directly impact the amount of house you can buy as they directly bump up the amount of cash needed at closing. Supporters of the tax need to understand that they are saying government needs that money more than families trying to buy a house do.
At least have the guts to admit that.
