How will you vote?
Here is a recent email I received asking everyone to send to everyone they know. I thought this would be a great topic for our blog: (I have added a more clear understanding of what this means for Kansas City homeowners just below this original email)
---------- Forwarded message ----------
From: Kenneth Thompson & I received it from Jerry Stots
Date: Fri, Feb 24, 2012 at 2:23 PM
I thought you might find this interesting, -- maybe even SICKENING!
The National Association of Realtors is all over this and working to get it repealed, -- before it takes effect. But, I am very pleased we aren't the only ones who know about this ploy to steal billions from unsuspecting homeowners. How many realtors do you think will vote Democratic in 2012?
Did you know that if you sell your house after 2012 you will pay a 3.8% sales tax on it? That's $3,800 on a $100,000 home, etc. When did this happen? It's in the health care bill, -- and it goes into effect in 2013. Why 2013? Could it be so that it doesn’t come to light until after the 2012 elections? So, this is ‘change you can believe in’?
Under the new health care bill all real estate transactions will be subject to a 3.8% sales tax.
If you sell a $400,000 home, there will be a $15,200 tax. This bill is set to screw the retiring generation, -- who often downsize their homes. Does this make your November, 2012 vote more important?
Oh, you weren't aware that this was in the ObamaCare bill? Guess what; you aren't alone! There are more than a few members of Congress that weren't aware of it either.
You can check this out for yourself at:
I hope you forward this to every single person in your address book.
VOTERS NEED TO KNOW.
It's HERE! NAR, MAR (Missouri Assoc of Realtors) and a some of the local Realtors have been fighting it off for years. Does your Realtor go to Jefferson City to help get support for homeowners rights? Do they respond to the requests from our Missouri Lobbyist to get the word out to our Congressment and Senators? Unfortunately only about 10%-15% do.
Something similar to this happened 7-8 years ago when they passed the law that real estate sale prices would be public knowledge. That meant that every sale from 7-8 yrs ago became the new tax assessed value. Did you notice 7 years ago that your taxes started to climb drastically? The reason is they tried to slip this law inside another bill. A handful of local Real Estate agents were in the chambers to fight this one off. They delayed the passing of the law because there was so much controversy. Then, while we were all in Jefferson City protecting the rights of homeowners by visiting with your Senators and Congressmen to help them understand what some of the new laws would do to Missouri homeowners, they put that vote back on the docket and passed it without any opposition. Result? Our local property tax values were about 20% under the current real estate value, and our property taxes began to climb.
The reality of this law passing? This has already been happening in many other states for years. Other states around the country have been paying a 1% (most common) and I have heard of some as high as 2% tax on all sale prices. It is not new, just new to us. We have expected it to work it’s way through after many many years of fighting it off for KC homeowners. The Missouri Association of Realtors has one of the BEST lobbyist on the planet and Sam (our lobbyist) has done an incredible job of helping us protect local homeowners rights AND getting MO Congressmen & House Rep’s to support the homeowners rights. We did expect that something around the 1% to 2% sales tax would continue to work it’s way through the system.
So what is the result? The truth is, this will NOT be something fun to pay and it is going to affect equity (somewhat) if it is passed. We could lose one year appreciation on our property values every time we buy a home or piece of property AND if you hire a Realtor that sells more than one to two properties each month, and rely on someone helping regular home owners get 2-4% higher sale prices because they sell 6-10 properties each month, and know how to help homeowners get more equity then this law may not affect you as much.
Because our appreciation in the past has been very solid around 3-5% appreciation each year up until the end of 2005, that 3.8% sales tax is basically one year of appreciation out the window. In a normal market where we are appreciating, that just means you won’t be able to move every 3-5 years like most Kansas Citians would do, it means you will just move every 4-6 years. This is what has happened lately. In our current market conditions, mostly our market has been flat. If there was any depreciation, it has mostly been in homes priced over $225,000 in Missouri, and homes over $300k in Kansas. That means there has been no appreciation for the past 6-7 years and most people have now been in their homes for 7-10 years. I wanted to thank Jerry for forwarding this email to me because it really makes us all look at your voting decisions more seriously, and even though you may be in complete favor of a new law, especially when it is for schools, etc. you may be passing another law, buried inside that one, that will cost you thousands of dollars.
If you would like to find out more about how this law would affect you and the value of your property, don’t hesitate to give The Korn Team a call. We have been helping and average of over 100 home owners and home buyers, per year for the past 7 years, take advantage of the current market conditions. You can call us directly at (816) 224-KORN (5676) or visit our website at www.kornteam.com to get our email or mailing address. Vote wisely this election year and make sure that when you vote in support for something you are passionate about, that you are not voting for something else you absolutely do not support.