Agents oppose hike in tax

Real estate agents in Jefferson County don't want to see the mortgage recording tax increased.

Under the 2010 recommended county budget, the administration proposed adding a one-quarter percent tax for county coffers to the existing one-half percent collected for the state and one-quarter percent collected for municipalities. The added tax is expected to bring in an additional $500,000 for the county beginning in July.

"It's an excuse to raise money," said Patrick J. Henry, president of the Jefferson-Lewis Board of Realtors. "They figure voters only pay it once, then they're disconnected from it."

But, he said, homeowners would pay the tax every time they purchase a home with a mortgage, take out a home-equity loan or refinance. The tax doesn't include other charges, such as deed stamps and filing fees.

On a $100,000 mortgage, the tax will increase from $750 to $1,000.

In Jefferson County, home sales so far this year are down compared to previous years. At the end of September, 583 homes had sold, a drop from 695 in 2008 and 861 in 2007.

"For those who can afford to put down $20,000, it won't affect them as much," said Lance M. Evans, executive officer of the Board of Realtors. "But for those who are putting down $1,000 and borrowing a lot more, it will affect them more. Those are often first-time home buyers and have less in income anyway."

For those people, the added tax could present a barrier that drives them away from the purchase, he said.

In presenting the concept, county administration said the tax is a "use tax" that will comprise only a small amount of the total closing costs.

Legislature Chairman Kenneth D. Blankenbush, R-Black River, said adding the tax isn't a done deal yet.

"It is up for a discussion item," he said. "We have not voted on it or approved it."

But, he added, the county would be following the path of neighboring counties. St. Law-rence County is considering raising the mortgage recording tax there to 1.25 percent from 0.75 percent. According to Times archives, Lewis County's mortgage recording tax is 1 percent.

"I don't think any of us on the board like a tax," Mr. Blankenbush said. "We don't want to be like the state, adding fees and taxes on services."

But as the board members look to 2011 and beyond, they expect less in state support.

"The county's got to look at how we can be raising funds in a fair way," Mr. Blankenbush said.

Other long-term options for raising revenue brought up at a work session Tuesday include fees on cell phones and increased building code and vehicle registration fees.

"We have tried to stay away from that in the past," he said. "But we're going to have to make decisions that none of us like."

But those involved in property sales said that activity already led to other revenue for the county.

"When people buy homes, they're also buying furniture, paint and doing home improvement," said Jennifer J. Dindl-Neff of Humes Realty and Appraisal Service.

Those purchases mean sales tax. And home purchases create business for attorneys, bankers and, frequently, contractors.

"Buying a home really spurs the economy," she said.