New Jersey REALTORS®: High Taxes on Real Estate Hurt New Jersey’s Bottom Line
Edison, NJ – April 7, 2009 – (RealEstateRama) — The New Jersey Association of REALTORS® (NJAR®) today said the significant downturn in realty transfer fee collections shows that high taxes on real estate have a detrimental impact on the state economy.
“In years past, NJAR® has testified that the real estate market is cyclical and New Jersey should find stable funding sources to rely upon when crafting a budget,” said NJAR® Executive Vice President Jarrod C. Grasso, RCE. “This year’s severe budget shortfall is evidence that continued reliance on real estate related taxes is not the answer to solving our state’s fiscal woes. Soaring realty transfer fees and property taxes are an impediment to stabilization and growth of the real estate industry, which is the engine driving the Garden State’s economy.”
The nonpartisan Office of Legislative Services released estimates yesterday that indicate the realty transfer fee will produce less revenue in fiscal years 2009 and 2010 combined than it yielded in 2006; the last year the fee was increased.
“The reverberations of decisions made during past budget cycles continue to be felt,” added Grasso. “These sharp revenue declines show that New Jersey homeowners can no longer afford to have the state rely on them to plug budget deficiencies.”
NJAR® encourages legislators to utilize this year’s budget process to fix the fiscal policies put into place in years past by taking steps to rollback the realty transfer fee. Additionally, the Association is asking for lawmakers to abandon plans to eliminate the ability for households earning more than $150,000 to deduct their property taxes on their state filings.
“Just like the realty transfer fee, the partial elimination of the property tax deduction will come back to haunt lawmakers,” Grasso said. “We don’t have to continue down this path. It is time our elected officials change course by rejecting policies that threaten homeownership. NJAR®‘s hope is that lawmakers recognize the value of homeownership and do everything in their power to lower taxes on real estate.”
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The New Jersey Association of REALTORS®, with approximately 53,000 REALTOR® and REALTOR-ASSOCIATE® members, is one of the largest trade organizations in the state. NJAR®‘s membership is comprised of real estate professionals who subscribe to a strict Code of Ethics and are members of the national and local REALTOR® organizations. As the leading advocate for the real estate industry and private property rights in New Jersey, NJAR® is committed to protecting the dream of homeownership. For more information, please visit www.njar.com.
