Friday, March 14, 2008

Do Your Property Transfer Taxes Stink?

Here in Chicago there is a big stink over raising the property transfer taxes to pay for the ailing transit system.

Currently here in Chicago, buyers pay $7.50/1000 and sellers pay $1.50/1000 (some of which is state, county and city).

A recent proposal was to raise the buyers fee by $3/1000 to $10.50/1000 which in my argument would create a disincentive (if that's a word) towards buyers ESPECIALLY in this market where we need all the stimulation we can get (economic and otherwise).

Anyways, it just passed yesterday that the transfer increase burden would indeed be placed on the sellers so our new structure is as follows with this example:

$7.50/1000 for buyers
$4.50/1000 for sellers
On a $300,000 property purchase that would mean
$2250 for buyers
$1350 for sellers

How does it play out in YOUR neck of the woods?

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