In a recent article in the Charlotte Observer, the issue of a land transfer tax repeal was brought forth because the state legislature is considering repealing the new law that gives counties the right to impose a tax on the sale of land. Members of the N.C Senate are considering the removal of the tax, they say, because no counties have adapted the land transfer tax as a source of revenue. A greater and longer running struggle wages in this topic…something that impacts every person—real estate owner or not.

 The Realtor Political Action Committee (RPAC) is the real estate agents political lobby that influences governmental agencies and law makers on every level. Donations are solicited from every member of the North Carolina Association of Realtors as well as every member of the National Association of Realtors to support this committee whose primary goal is to promote the interest of Realtors in government. While it is true that every industry has their own lobby, the RPAC typically keeps a low profile as to not raise criticisms or draw attention to themselves as anything other than the people’s voice in government. 

Here in North Carolina, the RPAC has been busy recently. Last year, the state passed a law, through the opposition of the RPAC, that provided counties of North Carolina the right to impose an additional tax on the sale of land. The maximum allowed tax is roughly ¼ of a cent tax and must be approved via referendum by the residents of the respective counties. The tax could be used to fund various local government services.  

Sen. David Hoyle, chairman of the Senate Finance Committee, noted that none of the 20 counties that have proposed this revenue stream have approved this new tax. Sen. Hoyle asserts that the failure of counties to adopt this tax is reason enough for the state to appeal the law that gives counties the right to tax the sale of real estate.

So, what’s the real issue here? 

The real issue here is not the value or impact of a tax on land transfers, although the RPAC opposes this revenue stream, the real issue here is governmental rights. Who has the right to do what? Essentially, it is a question of sovereignty. 

Sovereignty? That’s right. The same basic issue that caused a Revolution. The same basic issue that also cause a Civil War. The sovereignty of a local municipality to choose to operate as they deem fit. While the RPAC is working to stay off any potentially harmful taxes that could negatively impact the real estate industry, they are opposing the rights of local governments to determine how they want to fund their operations. In opposing the rights of county governments, the RPAC is opposing the smallest level of government and the voice of the people in the operation of the county government. 

While the members of congress in Raleigh discuss this topic, there is a degree of certainty that the law will not be immediately over-turned. If too quickly removed, the risk of appearing to have made a mistake is great. While time is certainly on the side of county governments, the true issue on hand is being distorted.

During the discussion of the topic, the question of impact of a land transfer tax is being raised as the issue. Independent thinkers know that this is just propaganda; that the impact is not the subject of debate. The topic is state vs. county rights to determine how to fund the operation of local government services. That is the real question. That is the topic of debate.  In order to think clearly about this subject, one must know what the real issues are.

Whether you align yourself to the Left or Right, you must see the issue as it truly is. It matters less how you fall than that you see the issue clearly. The clarity of the essence of a matter is the foundation of critical thinking. Critical thinking is the first step of the wisdom that leads to successful living.