C.A.R. Opposes Transfer Tax Legislation
C.A.R. is opposing SB 1220 (DeSaulnier), which imposes a transfer tax to generate funds for affordable housing. C.A.R. is opposing SB 1220 because it will add to the cost of buying a home at a time when the housing market is struggling to recover. C.A.R. is an aggressive advocate for affordable housing, but believes it is bad policy to fund affordable housing by making housing less affordable and to fund affordable housing at the expense of homebuyers.
Sen. DeSaulnier has introduced SB 1220 to permanently fund an affordable housing trust fund. Unfortunately, SB 1220 creates a real estate transfer tax of $75 per document to fund this program. In virtually all transactions, a minimum of three documents are recorded – the grant deed, the release and reconveyance, and a trust deed. SB 1220 will create a minimum $225 transfer tax, and the amount could be even higher, depending on the total number of documents recorded.
C.A.R. believes it is unfair and unwise to target one group (homebuyers) to pay for affordable housing, which is an issue of broad social concern. C.A.R. is also troubled that SB 1220 increases the already-substantial cost of buying a home.
While C.A.R. adamantly supports the creation of homeownership opportunities, SB 1220 is clearly not the way to achieve this goal.
SB 1220 is expected to have a hearing in the Senate in April.
For more information, see C.A.R.’s web site: http://www.car.org/governmentaffairs/getinvolved/sb1220opposetransfertax/