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Published: Sep 10, 2007 12:00 AM
Modified: Sep 10, 2007 05:22 AM
 

Industry won't ante up

Over the past decade, the housing boom has transformed Chatham and Johnston counties into suburbia. This fall, they get first shot at deciding whether it's time for the real estate industry to give something back.

After cashing in on the state's low property taxes, good schools and fabulous environment, the Realtors are raising Cain over the unfairness of a modest real estate transfer tax. Forget that the schools are bulging, the roads are clogged, and the water is running dry.

We saw their ferocity this summer, as the N.C. Association of Realtors and the N.C. Association of Home Builders, which give more money to lawmakers than any other groups in the state, went up against local government groups and school boards over the tax on home sales. Many hundreds of thousands of dollars were spent on both sides. The Realtors alone spent more than $1 million if you count campaign contributions -- and you must.

They almost shut the thing down completely.

At the very last moment, lawmakers punted the decision to the counties, allowing them to seek the authority for the .4 percent real estate transfer and/or a .25 percent sales tax increase from voters.

So the battle has come home.

Johnston and Chatham are among the first counties in the state -- and the first in the Triangle -- to put the transfer tax before voters (and in Johnston, the sales tax, too).

But the counties aren't allowed to advocate, only educate. Meanwhile, the Realtors and home builders will be blanketing, and blowtorching, the guinea pig counties as a warning to others.

The Realtors have a roving reporter talking to "regular folk" around the state who live in terror of what the real estate transfer tax might mean. She has already been to Chatham County twice. (See her reports on the subtly named Web site www.itsabadidea.org.)

What she doesn't ever mention is that without a real estate transfer tax, counties will be forced to find the money they need for more schools, or clean water, or fill-in-the-blank, someplace else. Probably your property tax bill.

What I find interesting is that the Realtors association appears to expect local real estate agents to be foot soldiers in this war.

The problem is that real estate agents in Johnston and Chatham, like in the rest of the Triangle, know that part of what sells their homes are good schools. They also know that high property taxes work against them.

The head of one local Realtors group, Teresa Byrd, was a member of Johnston County's Blue Ribbon Commission, which recommended letting the voters decide whether they want the real estate transfer tax or local sales tax options. Byrd supported the recommendation, but she doesn't much want to discuss the issue these days. I can certainly see why.

Her colleagues say they've been deluged with e-mail messages, mailers and phone calls about the tax. Just a weeeee bit of pressure.

Yet every one of the local real estate agents I spoke with over the past few weeks acknowledged the county's growing needs.

"Do I have another solution?" said agent Ron Earp of Clayton. "No, I do not."

I do. If the Realtors are so concerned about folks being able to afford homes, how about scaling back their 6 percent commissions?

Columnist Ruth Sheehan can be reached at 829-4828 or rsheehan@newsobserver.com.

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