news-record.com

RALEIGH — Legislators are moving to repeal counties' ability to levy a land-transfer tax, which has proved unpopular with voters across the state.

Should the land transfer tax be repealed? Join the discussion at the Debatables blog.

Residents already pay a so-called deed stamp tax when they sell their houses. But the General Assembly last year granted counties the authority to raise an extra transfer tax, which would have added $800 to the cost of a $200,000 sale.

Across the state, 21 counties have asked voters for permission to levy the new tax since it was authorized. All 21 failed.

"It's just something that I think the majority of the people do not want and that's been proven," said Rep. Maggie Jeffus, a Greensboro Democrat who signed on as a co-sponsor of the bill.

The measure was put into the state budget last year, which ensured it would pass. Many legislators won't vote against the budget if it contains enough items that they back.

But if the tax is included in a standalone bill, many representatives may jump at the opportunity to show their opposition.

"A lot of people think we should have a discussion about it," said Rep. Pryor Gibson, an Anson County Democrat who authored the bill. Gibson said that he does not favor the tax and thinks that hostility toward the land-transfer proposal has spilled over into sales tax referenda.

Guilford County voters rejected a sales tax increase this month. But eight other sales tax referenda have passed in the past year. The sales tax and transfer tax authority were created at the same time as part of a deal to have the state pay for Medicaid expenses that had weighed down county budgets.

However popular the bill proves, it may not get far. Top leaders in the House say it is not among the most pressing issues of the session.

"If the people don't want it, that's OK, they can vote against it. It doesn't mean we have to repeal," said Rep. Hugh Holliman, a Davidson County Democrat and the House majority leader.

Contact Mark Binker at (919) 832-5549 or mark.binker@news-record.com