Bill would place another tax on home sales

Another hidden tax is on the horizon. The state Assembly's Housing and Local Government Committee is considering Bill A3190 that would allow certain municipalities to impose a local realty-transfer fee (RTF) of 50 cents per $500 when a property is sold.

If we don't stop this measure, which applies only to municipalities more than 150,000 in population, others may look to expand it to get their own RTF. Allowing for a local RTF, in addition to the substantial RTF imposed by the state on property sales, sets a bad precedent. This was supposed to be a time of fiscal restraint. The state just capped local spending at 4 percent per year, but municipalities are still seeking ways to generate more revenue. Your home is a tempting target.

As a real estate broker-salesperson concerned about the viability of New Jersey's housing market, I'm strongly opposed to any new realty transfer fees. Allowing a select group of towns to impose a local transfer fee opens the door for all municipalities to institute such a fee. It may start at $350 on an average house, but fees and taxes always seem to go up, not down.

We property owners already bear the nation's highest tax burden. On top of that, the state RTF costs each seller thousands of dollars at the closing table. This new proposal would take away more of our equity.

The bottom line is that adding higher transfer fees to every real estate transaction will make housing more expensive. Sellers, who pay the higher fee, will have less equity to put toward another home. Buyers will face higher housing prices and will need a larger mortgage to purchase a home. Many first-time buyers and even middle-income families will be priced out of the real estate market.

A local realty transfer fee will also have consequences for the business community. The cost of housing is a key factor for businesses looking to relocate to New Jersey, expand their operations or attract qualified personnel.

Assembly Bill A3190 is nothing more than another tax on the sale of housing. If it's adopted, it could be coming to your town, too.

Here is an update. The bill the committee was scheduled to vote on this week was held in committee for the time being, rather than being moved forward for consideration by the full state Assembly. Perhaps some elected officials are hearing that taxpayers are fed up.

But we must stay vigilant on this measure. It's sure to rear its ugly head again soon. Write or call your local Assembly members and voice your opinion.

Rich Wieland

Monroe