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RETTs can be easily used for community benefits, and they are not very difficult to administer. And RETTs can raise significant sums. In Nassau County, New York, a RETT of 1% on real estate transfers over $500 was instituted in the face of a budget deficit, with an expectation of $50 to $60 million annually for the county from roughly $5 to $6 billion in sales. In 2000-2001, the state of Michigan collected $262,682,000from its RETT, which it directed to the School Aid Fund.
The level of revenue that a RETT creates depends primarily on:
The amount generated for equitable development will also depend on how the revenue is allocated, and whether it is split among several recipients.
As a dedicated source of revenue, the main problem with RETTS is their fluctuation within the housing market.
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