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One of the things that every Buyer considers when purchasing a home is real estate taxes.  After all, that can add a sizable amount to your monthly payment, between $100 and $300 per month for most Tucson homes.  Real estate taxes are assessed annually and paid in two installments, one in April and the other in October.  For those who have a mortgage on a home, the bank typically pays the taxes and then charges the homeowner a monthly amount equal to 1/12th of the annual assessment.  How would you like to pay annually and also when you sell the home?

What is Proposition 100 About?

Proposition 100 addresses the possibility of an additional transfer tax being assessed anytime a property is transferred, whether it be by sale or simply transferring the property from one party to another, such as one family member deeding the property to another family member with no money exchanging hands.  The effect of Proposition 100, if it passes, will be to amend the Arizona Constitution to state that no new real property sale or transfer taxes can be created or imposed.

Are we in danger of a Transfer Tax being Created?

Yes, we are.  The city of Tucson is already talking about enacting a fee on some home sales to create a funding source for affordable housing.  So we take money from home-buyers and sellers in order to make housing more affordable for others?  To me, that sounds like enabling those who can’t yet afford a home to get in over their heads while making it more difficult for those who are actually in a position to own property to be able to participate.

Furthermore, Arizona is strapped for cash and is likely to look for sources of increased revenue in the very near future.  But is double taxation on our homes really the answer?  The Arizona Association of Realtors says “NO” which is why they are sponsoring the Protect Our Homes Amendment, Proposition 100.

What is the Effect of a YES Vote?

A YES vote shall have the effect of making it illegal to create a new transfer tax in the state of Arizona.  We do not currently have any transfer tax, although other states do and they can run in the thousands of dollars (typically 1% to 2% of a home purchase price).

What is the Effect of a NO Vote?

A NO vote shall have the effect of leaving things as they are.  We currently do not have a transfer tax, but those in opposition do not want to leave this source of revenue untapped forever.  There is a reason that this proposition is entitled “Protect Our Homes”.

Where do I go for more information?

For more information, please visit http://www.protectourhomes.com/home/ and on November 4th, 

Vote YES on 100 for No New Real Estate Tax!

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