REALTORS
Oppose Doyle’s Tax on The American Dream
Date:
February
14, 2007
For More Information Contact:
Michael Theo
Vice President for Legal and Public Affairs
Wisconsin REALTORS Association
Phone: 608-241-2047
Madison - Governor Doyle’s budget proposal to increase
the real estate transfer tax is a tax increase on the American
Dream of homeownership according to the Wisconsin REALTORS
Association (WRA). “This is a tax increase of $140 million on
homeownership that will hurt housing affordability in
Wisconsin,” said Roger Rushman, Chairman of the WRA. “Raising
the price of housing will turn some ‘could be’ homeowners into
‘won’t be’ homeowners overnight,” Rushman said. He said the
REALTORS would vigorously oppose the Governor’s plan.
The Realtors also questioned why Governor Doyle proposed the tax
increase after promising not to raise taxes. “The Governor said
he’s against raising taxes,” said Rushman, who is the Executive
Vice President of First Weber Group Realtors of Milwaukee.
“This is a tax increase pure and simple. I think homeowners
across Wisconsin will not be happy.”
According to WRA President Bill
Malkasian, the current transfer tax is $498 on a median priced
$166,000 home in Wisconsin. Under the Governor’s plan, this tax
will double to $996. “The
seller is responsible for paying this cost in full, at closing,
at a time when both buyers and sellers must incur numerous
closing costs,” said Malkasian. “If the sellers can’t afford
that loss of equity, the price of the house will increase and
that will prevent many families from being able to afford their
American Dream.”
In addition to its adverse impact on housing affordability, the
REALTORS also argue the tax is regressive and discriminatory
since lower income households pay a larger percentage of their
incomes on housing. “This hurts everyone buying or selling a
home or any property for that matter,” said Malkasian. “From
the elderly seller or farmer who is counting on the equity from
the sale of their home to pay for retirement or alternative
living arrangements, to the young couple selling their starter
home and looking for a bigger house for a growing family. This
hurts them all.”
Malkasian concluded, “This is a bad idea for Wisconsin families,
Wisconsin’s real estate market, and Wisconsin’s economy.”
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