By policy, this newspaper does not endorse candidates. Matters of public policy, however, are fair game.
After weighing both sides in the debate over a real estate transfer tax, we strongly suggest you vote for it. Here’s why:
1. Another source of funds — The transfer tax will be a source of revenue for schools and parks that is not the ad valorem property tax. In Orange County, there is already a hefty tax burden on homeowners, especially longtime residents now living on a fixed income. Each year, as budgets are settled, much of the tension is over balancing support for a growing school system with the property tax burden. Like it or not, that dynamic will remain in place for a considerable time. An increase in commercial development, seen as the main way to reduce the burden, won’t happen overnight and, given the pace of residential development, may only help us maintain the balance we have now.
2. School growth continues — If you can get a copy of the report on the building needs of both school systems over the next two decades, you will note that the total is somewhere around one-quarter of a billion dollars. Even if estimates are off by a few tens of millions, that adds up to a lot of money that will be raised mainly through property taxes, either directly or through bond offerings.
3. It works — You may be surprised to learn that contrary to much of the rhetoric, transfer taxes are in common use throughout the country. In North Carolina and elsewhere, the counties that have it use the funds to keep pressure off the property tax rate and to keep up with growth.
4. Growth does not pay for itself — Not growth in Orange County, anyway. The one-quarter of a billion dollars for new schools mentioned above is not because fertility rates among those of us already here have suddenly skyrocketed. Each year, during school budget hearings, it is common to hear newcomers urge the county to hike taxes for the schools, saying that where they come from they paid more and would gladly pay more here. The transfer tax is a sure way to accommodate that sentiment.
Unless you plan on doing a lot of house hopping, you will only pay this tax once or twice in a lifetime.
5. No alternatives in sight — One reason to adopt the tax is that it is unlikely that members of the General Assembly — who face the same kind of political clout by the real estate and homebuilders lobby we see on display in this election — will offer up another non-property tax revenue option anytime soon. It has been more than a decade since the state’s Smart Growth commission presented a list of options the state could adopt to help local communities manage growth. For the most part, those alternatives have been fought tooth and nail by special interests in Raleigh.
6. Reject Astroturf campaigns — For the past year, the real estate lobby has helped set up and finance local committees to fight the tax. While there’s some local support, these committees are, for the most part, not grassroots efforts but Astroturf subsidiaries of the homebuilders and real estate PACs and act only as their conduit for hundreds of thousands of dollars in anti-tax advertising and flyers. In Orange County, this would set a dangerous precedent by demonstrating that such a method of influencing a local decision here is effective.
7. It’s easily reversible — Should the tax prove anywhere near as onerous or unreliable as its opponents insist, county commissioners can reduce it or eliminate it.
So there you have it, seven reasons why you should support this commonly used method to tie the cost of growth a little closer to its source. It is not the end of the world nor is it the answer to all of our school and park funding issues. But it is an idea that makes sense and is a step in the right direction.
Please remember to not stop at the top (of the ballot) and to vote “yes†on the transfer tax.
Unbelieveable. Only in Orange county can such a lame regressive tax pass. Get one more over on “the man”, right?
Homeowners, take note, get out and vote it down. Gas will be $4 per gallon soon- Got Tax?