Governor to Attack Affordability in Tax Increase

REALTORS Oppose Doyle’s Tax on The American Dream

Statement from the Wisconsin REALTORS® Association

February 14, 2007


Madison –Governor Doyle’s budget proposal to increase the real estate transfer tax is a tax increase on the American Dream of homeownership according to the Wisconsin REALTORS Association (WRA). “This is a tax increase of $140 million on homeownership that will hurt housing affordability in Wisconsin,” said Roger Rushman, Chairman of the WRA. “Raising the price of housing will turn some ‘could be’ homeowners into ‘won’t be’ homeowners overnight,” Rushman said. He said the REALTORS would vigorously oppose the Governor’s plan.

The Realtors also questioned why Governor Doyle proposed the tax increase after promising not to raise taxes. “The Governor said he’s against raising taxes,” said Rushman, who is the Executive Vice President of First Weber Group Realtors of Milwaukee. “This is a tax increase pure and simple. I think homeowners across Wisconsin will not be happy.”

According to WRA President Bill Malkasian, the current transfer tax is $498 on a median priced $166,000 home in Wisconsin. Under the Governor’s plan, this tax will double to $996. “The seller is responsible for paying this cost in full, at closing, at a time when both buyers and sellers must incur numerous closing costs,” said Malkasian. “If the sellers can’t afford that loss of equity, the price of the house will increase and that will prevent many families from being able to afford their American Dream.”

In addition to its adverse impact on housing affordability, the REALTORS also argue the tax is regressive and discriminatory since lower income households pay a larger percentage of their incomes on housing. “This hurts everyone buying or selling a home or any property for that matter,” said Malkasian. “From the elderly seller or farmer who is counting on the equity from the sale of their home to pay for retirement or alternative living arrangements, to the young couple selling their starter home and looking for a bigger house for a growing family. This hurts them all.”

Malkasian concluded, “This is a bad idea for Wisconsin families, Wisconsin’s real estate market, and Wisconsin’s economy.”


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The Wisconsin REALTORS® Association is one of the largest trade associations in the state,
representing over 19,000 real estate brokers, sales people and affiliates statewide.