You may have seen signs around town that say “Vote For Amendment #1 to stay tax free” and you are wondering what it’s about. This amendment on the November 19th ballot is about real estate transfer taxes, something we don’t need in our state.
Louisiana is one of only 13 states that currently do not impose a real estate transfer tax when property is purchased or sold. This amendment will help it remain that way by preventing local, parish, and state governments from imposing any new tax on the sale or transfer of real property. Right now, the Louisiana constitution is silent on the subject, meaning nothing prevents governments from trying to enact this taxation. In addition, Mississippi and Texas do not have real estate transfer taxes. If Louisiana had one, it would clearly make our state less competitive and hurt property owners.
For example, if you bought a home for $150,000, a transfer tax could add as much as $3,000 (or more) to your closing costs and it would have to be paid by the buyer or the seller when the property is transferred. Real estate owners already pay property taxes. A real estate transfer tax is nothing but another tax on the same property (or double taxation).
For more information about Amendment #1, please visit www.staytaxfree.com
Originally Posted at: Lafayette Real Estate News
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