Proposed Home Tax An issue that homeowners in North Carolina have been following closely is the NC Home Tax. Some counties are considering this as a new source of local revenue. It’s a bad idea for homeowners and for communities. During its 2007 session, the General Assembly gave county governments in North Carolina the option, if approved by local voters, to impose a .4 percent tax on property when it is sold. The transfer tax has been defeated all 24 times it has been placed on county ballots.  A recent statewide poll shows that 83 percent of the public opposes the tax. The tax is a bad idea, and here are a few reasons why: • This would not be a tax on growth and newcomers. This tax would be paid by the SELLER — people who have lived in their communities for years and paid property taxes, sales taxes and other fees and taxes. • The tax would rob homeowners of their hard-earned equity – the nest egg that many people use for their retirement or to pay for their children’s college expenses. • The transfer tax would make housing less affordable. Young families already are struggling to afford a home. This new tax means many people will no longer be able to experience the dream of homeownership. Mortgage credit opportunities are severely pinched right now and foreclosures are at record levels — this would be the wrong time to place any additional tax on homeownership. • This tax would single out one group of people – people who sell their homes or other real property – to pay for county infrastructure and services that benefit everyone. • The transfer tax would not guarantee that property taxes will not rise as well. Actually, the transfer tax is an unreliable source of revenue — one subject to the ups and downs of the real estate market. County commissioners can’t guarantee that property taxes will not continue to rise — even with a new home tax.

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