 |
 |
 |
 |
 |
 |
 |
 |
 |
Real estate transfer taxes (RETTs) (also known as "real property transfer taxes") are state, county, and/or municipal sales taxes most often used as general revenue. However, RETTs, can be devoted to specific uses such as affordable housing development or open space protection.
When RETTs are used to provide affordable housing or other community benefits to neighborhoods receiving an influx of investment, they can be a powerful form of value recapture, raising additional revenue as investment bolsters land value, because they are usually based on the sales price, and paid every time a property is sold. Florida, with its vibrant real estate market, forecasts $1.67 billion in revenue from its transfer tax in 2002-2003. Approximately 14.8 percent of its receipts, or $249 million, will be dedicated to state and local housing trust funds.
Equitable development advocates embrace RETTs because they mitigate the very activities that can lead to displacement-high-end real estate sales with rapid turnover.
 |
 |
 |