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Proposal to impose 2% transfer fee on high-end home sales referred to committee to fund affordable housing
Summary
Councilors referred a home rule petition that would impose a 2% real estate transfer fee on the portion of sales above $1 million to the committee on Community and Economic Development co-posted with the Council of the Whole.
The Salem City Council on Jan. 23 referred a home rule petition to establish a local real estate transfer fee to the Committee on Community and Economic Development co-posted with the Council of the Whole.
Under the proposal presented to the council, the city would impose a 2% fee on the portion of a property sale price that exceeds $1,000,000. The threshold would increase annually by 2%. Sellers would pay the fee; exemptions in the draft include transfers involving affordable housing developments, government entities and certain small administrative transfers. At least 25% of revenues generated would be directed to the Affordable Housing Trust Fund, with the remainder available for the general fund, capital fund or trust fund as specified in the proposal.
Councilors characterized the proposal as a revenue tool recommended in a local housing roadmap to create a dedicated funding stream for affordable housing programs. Councilor Davis spoke in support, saying similar fees have raised significant revenue in other communities. The item was referred for committee consideration and detailed review.
