Thinking about selling your house? A tax on real estate transactions would require you or the buyer to pay tax on the eventual sales price. And while the initial rate might be low, have you ever known a tax rate that didn't go up?
A tax on real estate transactions would mean that the combined state and local sales tax rate would be applied when a property changes ownership.
Such a tax would make housing purchases more expensive. Through negotiation, you could decide whether the buyer or seller pays the tax, but ultimately, someone would have to write the check. If a buyer pays, it makes the house more expensive for him; if the seller pays, he might ask a higher price for his house to cover the tax bill. Not only do proposals like this increase the cost of housing, they discourage development, which hurt the state's economy.
During the 82nd Texas Legislature, the Texas Association of REALTORS® worked to ensure that no proposal to assess such a tax passed the Texas House or Senate.
If you're concerned about this issue, talk with your Texas REALTOR® and let them know you learned about it on TexasRealEstate.com.