Did you know?
San Antonio area lawmakers have introduced ”sales price disclosure” legislation they claim will lead to equitable and fair property taxes. Don’t believe it.
State Rep. Michael Villarreal’s House Bill 133 and Sen. Jeff Wentworth’s Senate Bill 444 are short-sighted and bad for Texas homeowners. Bexar County Chief Appraiser Michael Amezquita and the San Antonio Express-News have also advocated for mandatory sales price disclosure. But it won't solve our problems. In fact, it would make things worse.
Sales price disclosure violates private property rights and, as proven in other states, does not lead to fairness in taxation. It does, however, lead to new taxes for property owners. Three-quarters of states that have real estate transfer taxes started with sales price disclosure. One is typically precursor to the other. Skeptical? Read this 50-state analysis from the National Council of State Legislatures and the Federation of Tax Administrators.
Several real estate transfer tax bills, which are essentially new sales taxes on real estate, are moving through the Texas Legislature right now. We oppose these measures because they represent new property taxes that will further burden Bexar County’s homeowners. There are better ideas.
The National Association of REALTORS® commissioned a study to analyze the effects of a transfer tax on real estate. The report assumed a tax rate of 0.5% (one-half percent) and a $125,000 purchase price. Based on these assumptions, the cost of buying a home would increase by about $600, and home sales would decline by almost 3%. One proposal, however, would've allowed the county to set the tax rate, so homebuyers could see a larger cost increase and sales could decline more than 3%. Additionally, the Real Estate Center at Texas A&M University concluded that the creation of a transfer tax on real estate may create more problems than it solves, costing the state $955 million in lost economic activity with 11,575 jobs eliminated.
Key points at a glance: Real estate transfer tax >>>
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