Protect Oregon Homes: Stop New Sales Taxes on Real Estate
Oregon faces a staggering budget deficit in the billions when the legislature convenes in January. With local governments across Oregon currently facing budget shortfalls in the millions, there is tremendous pressure to override the statutory limitations and allow cities, counties and even the state itself to impose a new sales tax on real estate. Real estate owners are a tempting target for cash-strapped government programs.
In the past five legislative sessions there have been ten attempts to enact a sales tax on the transfer of real estate, or to lift the pre-emption that would allow local governments (cities, counties, political subdivision) to impose a real estate transfer tax. To stop this threat and protect property owners, the Oregon Association of REALTORS® is pursuing an effort to gather signatures on a measure that will permanently prohibit the imposition of a real estate transfer tax here in Oregon.
To learn more, visit the campaign website: www.ProtectOregonHomes.com
What is a Real Estate Transfer Tax?
A real estate transfer tax is imposed by a state, county, or city, when ownership of the property is transferred from one party to another. In simple terms, it is a sales tax on your home or other property. They are usually one-time fees paid at the time of closing and are usually a percentage of the selling price of the property. They are charged on all types of real property including agricultural, commercial and residential.
How would a Real Estate Transfer Tax Work?
Each level of government that imposes a tax would charge a percentage of the sale price (rates typically vary from 0.1% to 4%) when you sell your home or real property, thus there could be multiple layers of taxation on a single transaction. The tax is imposed whether or not you make a profit on the sale.