Sequim Real Estate, Port Angeles Real Estate
Will buyers in Sequim and Port Angeles be forced to pay this real estate transfer tax? Just when you thought you were taxed enough, there’s a new tax on real estate coming our way. It started in California, as many trends do. It’s a private (not government) tax on the sale of real estate, and buyers are being forced to pay it when they purchase a home in a new development.
What Is This Private Transfer Tax?
Developers and builders often have opposition to their projects from environmental groups, land trusts, or other non-profit organizations. An alliance between develpers and these opposition groups has created a whole new paradigm, and developers are agreeing to pay off these organizations with a private transfer tax on the sale of each lot in exchange for their support for the real estate project. This saves the developer years of fighting, and clubs like the Sierra Club and the Audobon Society have found a new source of revenue.
The amazing thing is the way this new tax is imposed on innocent buyers. The developer includes a covenant incorporated into the deed, which requires future buyers to pay a percentage of the selling price to the designated land trust or charity. As of now, it appears the deeds have this requirement for a time certain, 20 years. Is this amazing? Creative, isn’t it! Because this seems to extort money from developers and ultimately from buyers while compromising what may be true environmental concerns, some would call this an unholy alliance. What say you?
This tax is apparently spreading to other states, and it is just a matter of time before it rears its ugly taxable head in Washington state.
Last Updated on June 17, 2019 by Chuck Marunde
Government must think our homes are ATM machines! I for one am tired of paying excessive taxes and getting little services in return.
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