Past Issues :: 2007 February 1 :: Act Now: Real Estate Transfer Fee
Open the way for a real estate transfer fee in Portland
What is a real estate transfer fee?
A real estate transfer fee is a small, one-time assessment — typically less than 1 percent — on the sale price of a home that is dedicated to fund affordable housing. For example, a 5 percent transfer fee, with the first $100,000 of the home sale price exempted, would amount to $500 on the sale of a $200,000 home. That equals around one cup of coffee a month for 30 years to help thousands of people gain housing and employment through economic development opportunities.
Nationally, real estate transfer fees are in place in 37 states, raising the largest sum of ongoing revenue for local housing needs. Unlike other allocations, the real estate transfer fee would be a sustainable source of funds, fluctuating in tandem with the real estate market. With the real estate transfer fee, the housing market helps to support housing for all community residents while protecting the most vulnerable.
What would a real estate transfer fee pay for in Portland?
A real estate transfer fee could help pay to house thousands of people, complementing the 10-year plan to end homelessness and creating innovative economic development for poor people.
Why don't we have one?
Current Oregon law prohibits any local community in Oregon from instituting a real estate transfer fee (ORS 306.815). The Oregon Legislature originally passed a real estate transfer fee prohibition in 1989. The Legislature then strengthened the prohibition in 1999, with the passage of ORS 306.815. The primary groups against a real estate fee are local and state Realtor associations.
What you can do…
Make three phone calls telling legislators you would like to encourage the Democrats to support removing the Realtor-bought ban, which prohibits local jurisdictions from adopting the fee. A majority vote repeals the ban. If every Democrat voted to repeal the ban, it would go to the governor and become law.
- Senate Majority Leader Kate Brown, 503-986-1700
- Speaker of the House Jeff Merkley, 503-986-1200
- Democratic Party of Oregon, 503-224-8200
