Quote:
Originally Posted by the urban politician
The problem with these graduated transfer taxes is that they continue to discourage people from owning expensive homes. We already have a lukewarm housing market here. Do we really need to depress it further?
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The housing market is not lukewarm for expensive homes ($650k and up). Either way,
Lightfoot's plan uses a higher tax on those homes to lower the transfer tax on lesser-priced homes.
Quote:
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The current tax is $5.25 for every $500 of a property’s sale value, or 1.05 percent. Lightfoot’s tax would charge 0.35 percent for the first $500,000 of sale value; 1 percent for between $500,000 and $1 million; 2 percent for between $1 million and $5 million; and 3 percent for the sale value over $5 million.
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Under this structure, you would start paying a higher fee around the $1.2 million mark.
- A $750k home would save $3,625 ($7,875 today versus $4,250)
- A $500k home would save $3,500 ($5,250 today versus $1,750)
- A $250k home would save $875 ($2,625 today versus $1,750