Arizona Ballot Propositions

I wanted to give you a summary of two Ballot Propositions that will be voted on in Arizona in November. Both involve real estate. If you are an Arizona voter PLEASE READ THIS BEFORE YOU VOTE.

PROPOSITION 100

If passed, this Initiative would prohibit the State Legislature from enacting a real estate transfer tax when you sell or buy a home. This would be an additional tax over and above what we pay now. The Proposition would amend the State Constitution so that the Legislature could not override it by passing a law. With the current State Budget in the red by quite a bit, Proposition 100 will block the Legislature from enacting a real estate transfer tax as a way to help make up the state's substantial tax income shortfall. The Arizona Association of Realtors sponsored this Proposition and recommends a "yes" vote as do I.

PROPOSITION 201

This Propositon is a bit tricky. You have probably been seeing ads on both sides of this Proposition. At first blush it sounds good, More protection for home buyers and protection against the big builders. But, if some of the ads are to be believed, ANYONE can sue a home seller for up to 10 years after the sale. Evidently, it will apply to private home sellers as well as builders.

A home builder friend of mine predicted that if Prop 201 passes, new home building will be drastically curtailed because builders will not want to build homes in, what will be for them, a legally more risky environment. For me, that is an important consideration.

Read your voter materials on Prop 201 and make up your own mind. Remember, this is a long Proposition and with long ones the devil is often in the details.

Richard