The Washington Business Journal reports that the D.C. Association of Realtors has put forth the request that D.C. eliminate the recordation and transfer taxes required for homes that sell over $400,000 since, “excessive recordation and transfer taxes that negatively impact housing purchases and economic development have no place in the District’s revenue stream. All these excessive taxes seem to do is reinforce a perception and precedent of the District haphazardly taxing anything that can generate revenue.”
This was part of the written testimony submitted by Ed Krauze, CEO of the D.C. Association of Realtors, to the D.C. Tax Revision Commission. This group has been charged with the task of revising D.C.’s tax code and is expected to deliver their recommendations about four months from now. The recommendations will cut across nearly all sectors, not just real estate, but the proposal for eliminated the recordation and transfer fees is unlikely to pass.
Currently the rate is 1.45% for both the buyer and seller which earned the District almost $300 million dollars in revenue during fiscal year 2013. So that is hardly something the city can afford to lose. However, as Inman News points out, at least five states have successfully lobbied to do away with the tax (they are: Arizona, Missouri, Montana, Louisiana and Oregon).
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To read the full Washington Business Journal article, click here.