Wisconsin Gov. Jim Doyle made the following comment before the joint session of the Legislature: “My budget says every child, every family, should have a chance to get ahead and live the American dream.”
It is unfortunate that home ownership and Wisconsin families are not being valued in Gov. Doyle’s latest budget released this past week. His proposal would double the real estate transfer tax to $6 per thousand dollars of value, which would result in a southeastern Wisconsin family paying an upfront tax of $1,500 when purchasing a $250,000 home. Currently, homebuyers pay $3 per thousand dollars of value or $750 on a $250,000 home.
For many families, adding a $1,500 upfront tax to their purchase may delay or eliminate their chance of achieving the American Dream of home ownership.
National figures estimate that for every 1 percent increase in a down payment for a home decreases housing affordability by up to 70 percent for "could be" buyers with low to middle incomes. This is an astonishing statistic that does not bode well for housing affordability in our region.
While it may be a great time to buy a home, it just became more expensive and less attainable for many Wisconsin families. Please contact your state senator and state representative to oppose this provision in the governor’s proposed state budget.
J. Scott Mathie is the director of government affairs for the Metropolitan Builders Association in Waukesha. He can be reached at (262) 436-1122.
