Local Realty Transfer Fee Bill Scheduled for Vote
NJAR (New Jersey Association of Realtors) received notification late last night that a bill which would allow municipalities classified as “cities of the first class” to impose a local realty transfer fee (RTF) in the amount of $.50 per $500 of consideration is scheduled for a hearing on Monday, March 5 by the Assembly Housing and Local Government Committee.
Take action against this bill now!
Sponsored by Assemblywoman Joan Quigley (D32) and several Hudson and Essex County legislators, A3190 will apply to those cities with a population of more than 150,000 residents, currently only Jersey City and Newark.
Allowing for a local RTF in addition to the RTF imposed by the state sets a bad precedent. In this time of fiscal restraint when the state has capped local spending at 4% per year municipalities will be seeking ways to generate more revenue. If we don’t stop this measure other municipalities may look to expand this legislation to allow for their own RTF.
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Sample Letter:
Dear [ Decision Maker ], On Monday, March 5, 2007, you will hear testimony on Assembly bill A3190, which allows municipalities classified as cities of the first class to impose a local realty transfer fee (RTF) in the amount of $.50 per $500 of consideration.
As a resident of New Jersey concerned about the viability of our state's housing market, I am strongly opposed to any new realty transfer fees. Allowing for a select group of municipalities to impose a local transfer fee opens the door for all municipalities to institute such a fee. New Jersey property owners are already bearing a high tax burden. We are pleading- don't squeeze their equity.
The bottom line is that adding higher transfer fees to a real estate transaction will make housing more expensive. Sellers, who pay the higher fee, will have less equity to put toward another home or other expense. Buyers will face higher housing prices and will need a larger mortgage to purchase a home. Many first time buyers, low-income and middle-income families will be priced out of the real estate market.
A local realty transfer fee will also have consequences for the business community. The cost of housing is a key factor for businesses looking to relocate to New Jersey or expand their operations.
In his budget address last month Governor Corzine assured the citizens of New Jersey that his budget proposal would not raise taxes or create any new taxes. By voting for A3190 and this tax on the sale of housing you would be going against the Governor's current fiscal philosophy.
I urge you to vote against Assembly bill A3190 and stop taxing New Jersey homeowners.
Sincerely,
[Your name]
[Your address] | |
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