Republicans just love creating exceptions to the Realty Transfer tax. This time, they want to create an exemption for a second real estate transaction that takes place during the same twelve (12) month period.
The state levies a 4% tax rate on any property sold in Delaware. The cost is evenly split between the buyer and the seller and it is paid at the closing table. Republicans object to people being taxed twice in the same year, but what is being taxed here is the transfer of property, not the persons involved. If we had a sales tax in Delaware, people would be taxed multiple times per year, because it is the transaction that is being taxed, not the person.
So House Bill 67 would exempt the person (whether they are the buyer or seller) if they have already paid the realty transfer tax on a different property in the last twelve months.
This bill was supposed to be heard in the House Revenue & Finance Committee today, but that meeting was cancelled. It will likely be heard at the next meeting of the Committee. It only has Republican sponsorship, so the bill might not get released from committee. But then again, last year, a bill to lower the realty transfer tax back down to 3% (where it was in 2017 before the Budget Deficit Crisis), sailed through the very same committee before it was stalled in the Appropriations Committee.
|House Bill 67 – Another Realty Transfer Tax Exception||Currrent Status – House Revenue & Finance 3/2/23|
|House Sponsors – Shupe, Ramone, Gray, Hilovsky, Yearick||Senate Sponsors – Hocker|
|House Yes Votes –||Senate Yes Votes –|
|House No Votes –||Senate No Votes –|
|House Absents or Not Voting –||Senate Absent or Not Voting –|
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