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RALEIGH - Voters' rejection of a new tax on the sale of real estate in 16 North Carolina counties this week means all property owners there might wind up paying higher taxes, a county government spokesman says on the "Headline Saturday" show airing today on WRAL-TV.Without a 0.4 percent "transfer tax" to help defray the costs of growth, commissioners in most counties -- including Johnston and Chatham, whose voters rejected the tax -- probably will have to rely more on raising property taxes instead, says Todd McGee, spokesman for the N.C. Association of County Commissioners.McGee made the remarks during the taping Friday of the TV news show "Headline Saturday," a collaboration of The News & Observer and WRAL-TV. The program is scheduled to air at 7:30 p.m."Now you've increased the likelihood that all property owners will pay higher property taxes in the future," McGee said. "You haven't done anything to lessen the need for tax revenue. The need is still out there and will have to be met."On the other side of the debate, Republican state Rep. Paul Stam of Apex, a leading opponent of transfer taxes, said voters were right to reject a tax that's unfair and irrational."It's a poor tax," Stam said during the taping. "People are not convinced that their counties really do need more money. On this particular tax, voters said this is not a fair tax anyway."At 0.4 percent, a transfer tax would add $1,000 to the cost of a $250,000 house, or $4,000 to the sale of a $1 million business or tract of land.The tax, which would affect all sales of homes and businesses, is an irrational way to target growth, Stam said. If the goal is to make growth pay more of its costs, he said, then "impact fees" on development are more logical.McGee noted, however, that the General Assembly, where Stam is the Republican House leader, has denied counties the legal authority to assess impact fees, so that's not an option."The transfer tax would affect everybody who is selling property -- either profiting from the good times or contributing to the growth," McGee said.
matthew.eisley@newsobserver.com or (919) 829-4538