In yet another move to retard growth and raise taxes the city of Portland is looking to impose a new fee on condo sales. As proposed the new fee would be calculated at 1% of the sale price the first time each condominium is purchased. There would be no fee on subsequent sales of the same condo or townhouse.
The revenue collected by the city would reported be used to build affordable housing our apartment buildings. The city currently charges a conversion fee of $150 per unit – considerably less than this new fee.
The committee on Tuesday instructed city staff to study the impact of a similar ordinance in Burlington, VT, which has a 4% conversion fee that’s due at the time of property transfer and prior to the recording of the deed. The fee applies at the time of the original conversion of the residential unit to a condominium, and not to any subsequent sale.
The Housing Committee plans to take up the issue next month before moving the proposal to the full council for debate.
Posted by: Michael Sosnowski
Categories:
Maine Real Estate
Portland
Home Buying