VAR's Jay DeBoer, Vice President of Law and Policy, tells Virginia Realtors® and homeowners why the recordation tax on re-fis should be eliminated:
A piece of legislation is being considered that you should be aware of, as a Realtor® and as an advocate for Virginia property owners.
It's a bill that would eliminate the recordation tax from property refinances, thereby allowing Virginia property owners to refinance at a lower cost, saving them in these hard economic times hundreds of much-need dollars.
For whatever reason, some people are spreading a rumor that there's some sort of new real estate tax in the recently-passed healthcare bill.
So let's be clear: It ain't so. There is no new real estate tax, nor transfer tax, nor anything of the sort. Got it?
Where did this come from? The healthcare bill includes a 3.8% Medicare tax on "net investment income" (read:capital gains) for high income households.
So if you earn more than $200,000 per year ($250,000 if you're married), and if you sold a house for a profit of more than $250,000, then the tax would apply to you. (Once again, that's a quarter million bucks profit, not sale price.)
Real estate is a heavily regulated industry. Realtors® are at the center of many policy decisions at all levels of government. VAR's law and policy team represents Realtor® and homeowner interests in the legislative and regulatory arenas at the state, local, and national levels. Below you'll find information and links to your main resources for legislative information during the General Assembly Session and all year long.
IN THIS SECTION: