Vote "Yes"on "No New Home Tax" Initiative

What is a Real Estate Transfer Tax?
A real estate transfer tax is a state and/or locally assessed tax on real property that is typically assessed
according to the sales price of real estate property when transferred from one party to another. Transfer
taxes in other states range from .001% to 2.2%. Typically, once the tax is initiated, the rate can increase to
meet future legislative enactments.
Why are Transfer Taxes Proposed?
Transfer taxes once authorized can be assessed for a number of reasons including a new source of tax
revenue to balance a government’s budget due to over spending.
Problems with a Transfer Tax
􀀹 Causes Double Taxation. Governments already collect taxes on your property based on the
property’s value. This new tax would unfairly cause a second tax to hit to your home or property.
􀀹 Damages Equity. Since the tax is assessed against the total value including the amount you owe
on your mortgage(s), the overall equity earned by the seller is decreased.
􀀹 Burdens the Real Estate Market Further. In an already burdened housing market where people
struggle to sell homes, the overall higher costs will only increase the difficulty to initiate a
successful sale, not to mention making it less attractive for business recruitment to the area for
commercial real estate.
􀀹 Punishes the Home Owner. People who move from one house to another should not be punished
versus those who remain; in fact this is considered discriminatory and harms access to the real
estate “American Dream.”
􀀹 Lower Incomes Most Impacted. This tax imposes the higher tax burden on lower income
households that typically spend a larger percentage of their income on their home.
Solution!
Support the “No New Home Tax” initiative, which will prohibit the double taxation of real estate in
the State of Arizona.