Upon further review, North Carolina homeowners remained undefeated with regard to a real estate transfer tax.

       On a snowy Tuesday last week in a special election in Avery County, voters failed to pass the measure by 35 votes. The final tally, as certified today by the county’s Board of Elections, was 1,449 opposed versus 1,414 who supported the measure.

Election night results initially indicated that the transfer tax had passed by 25 votes (1,434 for; 1,409 against). But Johnny A. Canupp, chair of the Avery County Board of Elections, said the canvas had caught errors from two precincts. “The canvas of the votes caught the errors,” he said. “We wanted to make sure the total vote is correct.”

The result in Avery County marks the 24^th time in 24 attempts statewide that the transfer tax — also known as the Home Tax — has failed. A recent statewide poll shows that 83 percent of the public opposes the tax.

The transfer tax option for counties has been in place since the 2007 legislative session when lawmakers in Raleigh rolled it into the budget bill. Since then, homeowners across the state have fought vigilantly – and successfully – against the tax.

“Homeowners by and large are overwhelmingly against the transfer tax,” said Sandra O’Connor, 2009 president of the NC Association of REALTORS®. “We’ll continue to oppose the real estate transfer tax because it is fundamentally unfair, and has negative implications for homeowners. Basically, it’s a tax for the privilege of selling your own property. It doesn’t impact newcomers, as some proponents claim. It hurts the sellers – many who have lived on their property for years and have paid property taxes all that time.”

       In each of the previous 23 elections, the transfer tax was defeated by overwhelming margins. But a snowstorm that gripped the county on Election Day led to a smaller-than-expected voter turnout of only 22 percent. The local grassroots organization that opposed the measure – Avery County Property Owners Against the Transfer Tax – felt the inclement weather contributed to the close vote.

“Some people have asked if there will be a recount,” Canupp said. “Under North Carolina law, a recount can be conducted if the election result is no more than 1 percent; that would mean the difference would have to be 29 votes. The measure failed by 35 votes, so there will be no recount.”

After repeated losses at the polls, local leaders are frustrated about the public’s adamant refusal to grant them authority to raise taxes on land transfers. Not to be deterred, they are now attempting an end-run through the North Carolina General Assembly – one which would allow local governments to impose these taxes without voter approval. Even worse, elected leaders plan to campaign for the passage of this measure the same way they campaigned for the failed tax in localities across the state – with your money. (Click here to read more).

BY DANIEL GOLDBERG : The Herald-Sun
dgoldberg@heraldsun.com
Dec 25, 2008

HILLSBOROUGH -- In the end, the decision about whether Orange County should adopt a 0.4-percent land transfer tax was a blowout.

Voters stomped the measure in a May referendum, with 66 percent of those casting ballots siding against a tax that would be paid by property owners selling a home, commercial property or vacant land.

"I think we are already paying enough in taxes," said voter David Fraley on the day of the primary. "Most people are already having a difficult time paying the bills as it is."

It seems like the transfer tax was easily brushed aside, but for months before the May referendum the measure aroused passionate arguments from supporters and opponents. An army of campaign signs dotted yards and roads. Partisans made their case before elected boards. Web sites sprang up and letters rolled into newspapers.

According to Orange Citizens for Schools and Parks, those facilities are in dire need of capital funding. The grassroots group favored the transfer tax over other revenue options because, they argued, it would allow property owners to enjoy increases in the value of their homes and businesses without paying additional yearly property taxes.

Anti-tax opponents struck back hard, labeling the fee a "home tax," and casting it as measure that would dig into the savings of young families, those on a fixed income and seniors. Ultimately, anti-tax groups like Citizens for a Better Orange County garnered the most political clout. That attracted big-money donations from the Greensboro-based N.C. Association of Realtors, Durham Regional Association of Realtors, the Triangle MLS and the Washington-based National Association of Homebuilders.

Citizens for a Better Orange County spent more than $156,000 on its cause through the April 19 campaign finance reporting period. Citizens for Schools and Parks couldn't compete, spending about $840 during the same period.

The county commissioners had the option of bringing the land transfer tax referendum back for the Nov. 4 General Election or substituting a quarter-cent sales tax increase. They chose to do neither.

© 2009 by The Durham Herald Company. All rights reserved.