Current Issues
Realty Transfer Tax (RTT)
The realty transfer tax is a state and local tax assessed on real estate when it is sold. Pennsylvania taxes the transfer of real estate at a rate of 2 percent of the purchase price. In addition, local municipalities may add their own realty transfer taxes.
Some Pennsylvania lawmakers are considering RTT to fund the Commonwealth’s ailing mass transit systems. The proposal is to increase RTT from 1.0% to 1.9%, with the additional 0.9% dedicated to mass transit funding, or to create a menu of local taxing options including RTT.
The report, Why Raising the Realty Transfer Tax Is Bad Public Policy, released by the Susquehanna Valley Center for Public Policy, an independent political think tank, states that raising the realty transfer tax would increase the price of an average home by $6,671. That tax increase would have to be paid in a lump sum at settlement. For first-time homebuyers, an increase would dramatically raise the closing costs. In municipalities which currently charge a high RTT, a potential increase would raise the RTT to $10,000 for an average- priced single home.
A recent survey by Susquehanna Polling and Research polled 600 Pennsylvanians, revealing that 80 percent oppose any increase in RTT to fund mass transit.
2007 RTT Campaign
Homeownership Month
The Pennsylvania Association of REALTORS® is partnering with the Pennsylvania Association of Mortgage Brokers (PAMB) during June’s Homeownership Month. The two associations are offering homebuyers information on how to purchase homes, how to choose a REALTOR® and how to choose the best financing for your investment.
PAR and PAMB have several press releases on the topic of Homeownership Month, including:
Are you ready to be a Homebuyer? Check Credit, Budget and Organize Financial Documents, June 12, 2007
PA Association of Mortgage Brokers Offers Consumer Information on Foreclosures, June 12, 2007
So You’re Ready to Buy a House, Now What? June 07, 2007
PA Association of Mortgage Brokers Offers Tips to Avoid Abusive Lending Practices, June 07, 2007
REALTOR® vs. Real Estate Agent: The Real Difference, June 05, 2007
How Does A Mortgage Brokers Help With Financing, June 05, 2007
Consumer Resources