REALTOR Take a Stand and Win - Transfer Tax to Homebuyers removed from SB1220

The Nevada County Association of REALTORS® recently joined the State organization (C.A.R.) to take a position on SB 1220; REALTORS opposed the Senate Bill legislation because it imposed a transfer tax targeted to generate state funds for affordable housing yet the proposed bill would add to the cost of buying a home at a time when the housing market is struggling to recover. The Nevada County Association of REALTORS® strongly advocates for affordable housing yet believes it is bad policy to fund affordable housing by making housing less affordable and at the expense of homebuyers.

Many cities in California already have local transfer taxes. SB 1220, as written would have created an additional transfer tax of $225 on almost all real estate transactions, including refinances, adding to the already substantial fees and taxes already paid by homebuyers. We all must keep in mind that every $1,000 increase in the median price of a home disqualifies almost 20,000 California households from affording homes.

While REALTORS firmly support the creation of homeownership opportunities, SB 1220, as written in April 2012 clearly was not the way to achieve this goal. Lobbying on behalf of potential buyers and property owners paid off and our voice in real estate was heard at the Sacramento Capitol; Recently language was reviewed and modified to avoid the implementation of just another tax at “Point of Sale”.