Real estate lobby pushing for ban on transfer
By Mike Sunnucks
The Business Journal of Phoenix
February 22, 2008
Arizona's powerful real estate lobby is pushing for a November ballot measure that would ban state and local governments from imposing real estate transfer taxes.
Those taxes are levied when residential and commercial buildings and land parcels are sold. Arizona does not have such a transfer tax at the state or local level, but 35 states and a number of cities nationwide do.
The Arizona Association of Realtors worries about such a tax coming up as the Legislature deals with a $1 billion-plus budget deficit and considers proposals to put more funding toward roads, schools and health care. The association has filed an application for a ballot measure asking state voters to approve a transfer tax prohibition.
Tom Farley, vice president of the association, said home buyers and property sellers already pay property taxes, and impact fees and sales taxes on construction and materials drive up housing costs as it is.
He wants to block transfer taxes proactively and constitutionally.
Farley and Steve Roman, whose lobbying firm is spearheading the ballot effort, worry that new real estate taxes would burden an already downtrodden housing market.
"It should never be an option," said Roman, a principal with Hamilton, Gullett, Davis & Roman LLC. The firm's client list includes the Realtors group and a number of other real estate and development interests.
Most state and city transfer taxes are based on the value of the property being sold. Florida has a 0.70 percent transfer tax rate; the District of Columbia, 2.20 percent; and Nevada, 0.26 percent, according to the Federation of Tax Administrators. California, Ohio and some other states have no state transfer taxes, but allow local governments to impose them.
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