Letter in Opposition to SB 1220 Transfer Tax
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March 23, 2012
The Honorable Mark DeSaulnier
Chair, Senate Transportation and Housing Committee
State Capitol, Room 2209
Sacramento, CA 95814
Dear Chairman DeSaulnier,
On behalf of the Inland Valleys Association of REALTORS in Southern California’s Inland Empire, I am writing in opposition to SB 1220. Please add our association, representing more than 3,000 members, to the committee analysis as opposing the measure.
SB 1220 imposes a transfer tax to generate funds for affordable housing, thereby adding to the cost of purchasing a home at a time when the housing market is trying to regain its footing. While we support affordable housing wholeheartedly, it’s simply counterproductive to support it by raising the cost of purchasing a home through a significant new fee.
The "economic barriers" faced by families across the state – from high employment to rising borrowing costs to mandatory costs imposed by layers of regulatory requirements at every level of government – already delay or outright eliminates the goal of homeownership for too many Californians today. SB #1220 creates an additional transfer tax of $225 on almost all real estate transactions, including refinances in which California families are attempting to improve their financial outlook. Keep in mind that every $1,000 increase in the median price of a home disqualifies almost 20,000 California households from affording homes.
As advocates of homeownership and affordability, REALTORS are adamant about creating opportunities for more Americans to & the dream of ownership. However, we cannot support the counterproductive approach outlined in SB 1220.
Sincerely,
Steve Manos
President, Inland Valleys Association of REALTORS
