Real Estate Transfer Taxes,Tax on Service Providers to a Real Estate Transaction, and Higher License Renewal Fees....

The upcoming 2 year budget for Texas has a projected shortfall of nearly $18 billion or 20% of the total budget.  So how do you think the legislature will cover it?  They have several options:
1) Implement a state income tax (Political suicide and it won't happen)
2) Cut spending ( The legislature will try but $18 billion is too large a number to cover with just spending cuts).
3) Pull funds from the State Rainy Day Fund (Again, politically unacceptable and it won't be drawn down to cover the deficit).
4) Implement a property transfer tax, implement a tax on service providers to a real estate transaction, increase licensing and license renewal fees.

Texas is one of only 13 states that does not tax the proceeds from a real estate transaction.  In the last Texas legislative gathering, a transfer tax was proposed and defeated.  It can and will be brought up again when the legislature meets in 2011.  A tax on service providers to a real estate transaction is also up for discussion, ie. a tax on realtor commissions, etc.  Finally, we could see an increase in initial license fees and license renewal fees in all areas including real estate.
One of our rolls as a realtor is to promote a strong and growing Texas Real Estate Market.  Tax raising proposals mentioned here will threaten an already fragile market. 
Tell the legislature that it's time to cut spending and balance the budget without higher tax revenues.

Support our Texas Real Estate Political Action Committee (TREPAC) with your donations.  We need our voices heard loud and clear in Austin regarding matters affecting the Texas Real Estate Market.
Remember to vote in the HAR board of directors election which runs from July 19th through August 2nd 5PM.

I would appreciate your vote for John Shellington in the HAR Small Office Category.  Together we can preserve and strengthen our real state market.