Amendment 3 – Real Estate Transfer Tax
Generally I try to keep politics out of my blog; however, the upcoming November elections have a couple issues that pertain to real estate in Kansas City. Today’s issue is Amendment 3 on the ballot, and it affects all homeowners or potential homeowners in Missouri. According to the Secretary of State’s website, this is how the ballot will read:
Shall the Missouri Constitution be amended to prevent the state, counties, and other political subdivisions from imposing any new tax, including a sales tax, on the sale or transfer of homes or any other real estate?It is estimated this proposal will have no costs or savings to state or local governmental entities.
A “yes” vote will amend the Missouri Constitution to prevent the state, counties, and other political subdivisions from imposing any new tax, including a sales tax, on the sale or transfer of homes or any other real estate.
A “no” vote will not change the Missouri Constitution to prevent the state, counties, and other political subdivisions from imposing a new tax on the sale or transfer of homes or any other real estate.
If passed, this measure will have no impact on taxes.
The Missouri Association of Realtors has initiated a campaign called Yes to Save Homes. Their position contends that by voting yes, you will prevent double taxation on the transfer (sale) of property. We already pay property taxes, so why should we also have to pay a transfer tax? Specifically, they state on their website that they believe this tax “would hurt homeowners like you and would make it harder for you to sell your home”. Currently Missouri enjoys the benefits of some of the lowest closing costs in the country, and I have to admit, it would be nice if it stays that way. Just as an aside, if you buy property on the other side of our state line in Johnson County, Kansas, you are subjected to an additional tax in the form of a mortgage registration fee. Each mortgage that is recorded has to pay $2.60 per $1000 of the mortgage amount.
How will you be voting?
Below is a video brought to you by the Yes to Save Homes camp. It is a bit too long and the production seems dated, but it is educational.
[…] you're new here, you may want to subscribe to my RSS feed. Thanks for visiting!I recently wrote a blog entry about Missouri Amendment 3, which we voted for on Tuesday. It passed which means that we will not […]