While we currently do not have a real estate transfer tax, there is nothing prohibiting state or local governments from enacting one at any time. The best possible way to stop the state legislature or any special interest from ever enacting this tax is to amend the Arizona Constitution, prohibiting this tax. And to amend the Arizona Constitution you need to vote Yes on the amendment.
So, to ensure there is never a Real Estate Transfer Tax, you will need to vote YES on the Protect Our Homes Initiative – Proposition 100. This is a unique example of when YES actually means NO to a tax.
With our current slow economy and budget crisis, it won’t be long before cities, counties and the state start looking for new sources of revenue. Enacting a real estate transfer tax is gaining momentum in Arizona. Just last year a bill was introduced in the state legislature proposing such a tax. Countless citizens’ commissions and county reports mention a transfer tax as a possible source of revenue for the state. We must act now to put an end to this debate before it is too late!