Arizonans’ approval of the homes initiative will prevent homeowners and businesses from being hit with new taxes for buying and selling real estate in the state’s depressed economy.
Business leaders say the measure, listed as Proposition 100 on the Nov. 4 ballot, also will keep Arizona more competitive with other states vying to attract new companies and jobs throughout the recession and beyond.
The vast majority of voters agreed Tuesday that government should not impose any new taxes on the sale, purchase or ownership transfer of real property.
In a year that was generally unkind to ballot initiatives, Prop. 100 passed with more than 77 percent approval, according to unofficial election results.
The only other initiative out of eight ballot offerings to pass was Proposition 102, which prohibits same-sex marriages in the state.
Like the marriage ban, Prop. 100 prohibits something that doesn’t actually exist within the state.
But advocates for the new tax law, including the Arizona Association of Realtors and the Arizona Chamber of Commerce and Industry, said they had been concerned government officials would implement a property-transfer tax similar to those in other states to help offset state and local budget shortfalls.
“In the type of down economy that we have right now, all kinds of options are on the table to correct the (budget deficit) situation,” said Ann Seiden, Arizona chamber vice president of communications.
A real-estate sales or transfer tax is collected on the purchase, sale or ownership transfer of a home, commercial building or piece of land.
Transfer taxes imposed by 37 other states range from 0.1 percent to 2 percent of a property’s value.
Real-estate industry led charge to ban new taxes
A committee sponsored and funded by real-estate industry groups funded the campaign to approve Proposition 100, which bans any future tax on the purchase, sale or transfer of property in Arizona. There was no organized opposition to the ballot initiative.
Name: Protect Our Homes In Support of Prop. 100
Total contributions: $5.5 million.*
Total expenditures: $4.7 million.*
*Through Oct. 15.
Source: State campaign finance reports