Commission seeks menu of tax options

Despite opposition voiced on behalf of local real estate agents, the Alleghany County Board of Commissioners agreed on March 19 to seek legislation that would allow the county to tax the transfer of deeds.

The tax, called a local-option real estate transfer tax, would immediately generate an estimated income of $1,115,000 per year for the county that could be used to address capital needs, according to estimates released by the commission. Capital needs refers to building projects and other purchases of solid goods, such as vehicles and equipment, and actual structures and other infrastructure.

The tax, if made available by state legislation and then adopted by the county commission, would be a 1 percent fee on the sale of any property in Alleghany County that would be charged upon the sale of property. In addition, the North Carolina Association of County

Commissioners is seeking legislation to allow counties to enact any or all of several revenue options from a ‘menu' of taxation possibilities, including local option sales taxes, impact taxes and the real estate transfer tax. Sales taxes are charged on purchases, while impact taxes would affect any development of residential dwelling units.

Any such move for new taxation options for counties requires the approval of the general assembly. Since it is unlikely Alleghany will be able to get a bill through the legislature alone, its best chance to get such a tax approved would be to join in on a statewide push to get the tax, or a menu of new taxing options, approved for every county in the state. The commissioners have voiced specific support for the land transfer tax, since it would only affect those who buy and sell property; rather than everyone who owns property, like the current real estate taxes.

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