Missourians could be faced with an extra housing tax unless action is taken.
Currently, the Missouri Constitution allows real estate transfer taxes on homes and property. This means that when homeowners transfer ownership on their home, a tax is imposed, ultimately costing the homeowner extra taxes. This tax rate can be increased without a vote from the people.
Elizabeth Mendenhall, president of the Missouri Association of Realtors, is currently heading up a campaign to adjust the Missouri Constitution to prevent this tax from being collected.
“The one place that we have, the one place we call home, that place that’s so sacred to us, they’re trying to tap into it,” Mendenhall said, talking about the government last Thursday at a Maryville realtors meeting.
Mendenhall said that Missouri currently does not collect these transfer taxes, but she fears that they will soon unless action is taken. In other states, these taxes have been imposed for over 20 years, and once the tax is imposed, it can be increased at any time. Mendenhall said that the average increase is 82 percent.
At the meeting, Mendenhall reflected on her grandfather, who was also a realtor, and how he was very good at his job and at the end of the day, would go home and take care of his wife who was sick. Her grandmother had one wish while she was sick, to remain at home.
Mendenhall stresses the importance of the home in people’s lives and that at the end of the day, everyone just wants to go home, and that politicians should not be putting extra taxes on these homes.
“We need to say yes to no more taxes,” Mendenhall told the realtors at the meeting.
Missouri is not the only state that is having these transfer taxes allowed. Thirty-seven states in all have transfer tax allowances on homes and property including commercial property and farmland.
“It can range as high as four percent,” Mendenhall said, referring to the rate of the tax. “If you have a $200,000 house, that can be a $8,000 tax.”
“If you have to finance that tax throughout the course of a mortgage or a loan, that could be a substantial amount and a burden on the property owner.”
The campaign is still in the beginning stages and they are currently collecting signatures for a petition to have an option to amend the Constitution on the November ballot.
Over 157,000 signatures will have to be collected, but Mendenhall is hoping that they can get even more. In a survey by the Missouri Association of Realtors, seven of ten Missourians are not in favor of the tax.
“We’re on our way,” Mendenhall said.
She is also quick to point out that this issue is not affiliated with any political party and that the real issue is about Missouri property ownership.
“I think the important thing is transfer taxes are unfair,” Mendenhall said. “Missourians pay thousands and thousands of dollars in property taxes already. It’s important that Missouri remains a place where property and home ownership is valued and affordable.”
For more information on the Missouri Association of Realtors’ initiative, visit www.YesToSaveHomes.com.
