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Find Another Way to Fund Delaware Technical

Our members support the mission of Delaware Technical and Community College (DTCC). As President of the Delaware Association of REALTORS^®, I commend Dr. George for the incredible job he has done meeting the needs of our businesses and our community. Dr. George has been trying for several years to find funding to meet the current and future needs of the college due to increased enrollment. Recently, Dr. George went before the Bond Bill Committee seeking $20.5 million from the General Assembly to expand the facilities at DTCC. Several suggestions were made to find a revenue stream for money to fund these capital expenditures at all four locations.

While we support the need for more infrastructure, we cannot support funding that will increase the Realty Transfer Tax for any reason. Any increase in the real estate transfer tax to fund a Community College Infrastructure Fund for capital construction at DTCC is unfair and unwise for many reasons. Delaware has one of the largest real estate transfer taxes in the Nation. Adding another .28% will further chill an already cool housing market and preclude many low and medium income households from being able get their piece of the American dream, their own home. Homes are not just a roof over someone's head, they provide a sense of community and are an important investment resource over the long term. To single out one segment of the population, the homeowner, to pay anywhere from $400 to $2,000 per transaction for construction at DTCC, no matter how worthwhile, is fundamentally unfair. Everyone benefits from having a community college in their county, including businesses and residents who rent. You cannot add this burden solely on the person buying their first home or our senior population who may be downsizing and moving to a smaller home. They would have to pay the tax twice; on the home they are selling and then on the home they are buying.

Real estate transfer taxes are also extremely volatile and cyclical in nature as we have all clearly seen of late. In addition to being an unreliable source of revenue, even worse, real estate transfer taxes are regressive because the tax burden is higher for lower income households. As an example, to use the proposed increase of .28% in the real estate transfer tax on a home selling for $150,000 the increase in tax would be an additional $420, on a home of $250,000 it would be an additional $700, at $350,000 another $980, and $1260 for a home sold for $450,000. If a couple retires to lower Delaware from another part of the state, they will be hit twice with the increase in real estate transfer tax. Consider what the additional tax will be on landowners who buy or sell their land.

We would request that the Bond Bill Committee go back and look at the other suggestions that would spread any increase over a larger segment of the population and not place a large burden on only the homeowner or landowner.

Donald P. Ash, President
Delaware Association of REALTORS^®

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