SB Chamber hears cons of real estate transfer taxOct 28th, 2011 | By William Dilella | Category: Community
At the latest gathering for the St. Bernard Chamber of Commerce, Malcolm Young with the Louisiana Realtors spoke with members about the potential impact of proposed taxes for real estate transfers, and what those taxes could mean for the state’s future.
Young, who is the CEO of the realtors group, spoke about how well the Louisiana market is doing in comparison with the rest of the United States. The nation has 18-20 percent for unfulfilled housing listings, while Louisiana was hovering at about seven percent state-wide.
But as Louisiana looks for more ways to raise revenues, the legislature has proposed instituting a real estate transfer tax. Young and others have been fighting this move heavily since whispers about it began to surface. Their fear, Young said, is that this tax could drive businesses and people to relocating out of Louisiana.
“What happened was last year, we started talking to legislators and the governor,” Young said. “There are 23 states left that do not have an active real estate transfer tax. We felt that was really nonsensical to have one more disincentive for moving to Louisiana.”
Until actual legislation is brought forth, it is hard to determine how much or little revenue the transfer tax could draw in for the state, but other similar taxes in other states go up to about three percent of the transaction cost. In the case of a house, Young said, that is thousands of dollars.
As a result, there is a constitutional amendment on the ballot for the November 19 election. The amendment would prevent any new real estate tax transfers from being imposed, without first amending that legislation.
“I want to make sure it is clear,” Young said. “When you are voting ‘yes,’ you are voting for no more transfer taxes.”
That amendment is the only one on the ballot for the November 19 election.
Story and photo by William Dilella