The word is a "State Transfer Tax" on Property.
The NC General Assembly has tentatively approved a state budget that gives counties the authority to adopt a .4 percent transfer tax if approved by voters in the county. (Counties also will have similar authority to increase the local sales tax by .25 percent).
A transfer tax of 1 percent had been heavily discussed, which would have carried a cost of approximately $720 million statewide in fiscal year 2008 alone; at .4 percent, that dollar amount is reduced to less than $300million. Further, it will require passage by voters in the respective counties, and the latest polling from July indicates that 77 percent of North Carolinians are opposed to a transfer tax.
If the transfer tax is approved locally, the current .2 revenue deed stamp tax in Craven County would increase to .6 percent. On a $150,000 home, sellers currently have to pay $300 at closing. Under this proposed tax, it would increase to $900. Who will determine what will be placed on local ballots, and when? That will be up to the local county commissioners.
The NC Association of Realtors has strongly campaigned against this tax, since they feel it places the complete burden on current property owners, rather than a general sales tax, where everyone contributes equally, based of what they purchase.
