Assembly repeals real-estate transfer fee

April 22, 2005

DARRELL L. BREESE/Frontiersman reporter

PALMER - Jim Swing bought his own little piece of heaven on Canoe Lake back in 1987. Two years later, he married his sweetheart and committed to have her name added to the deed of their property.

Fifteen years passed and Swing managed to keep putting off making the change before finally walking into the Mat-Su Borough offices earlier this year to make good on his promise.

His procrastination ended up costing him $170, as he had to pay the borough's real estate transfer fee. Now Swing is among the numerous Valley property owners who can expect the borough to pay back that money.

After noting problems with the transfer fee involving individuals who wanted to add a new spouse to a property's deed and other property transactions involving the same owner, the Mat-Su Borough Assembly voted Tuesday to repeal the fee, which was originally enacted in May 2004. Assembly member Bill Allen cast the lone dissenting vote.

Borough Finance Director Tammy Clayton reported that $530,000 in fees had been deposited in the areawide general fund.

That money will now have to be refunded to property owners like Swing. "I paid the price for procrastinating," Swing said of having to pay the transfer fee. "Now I will be getting a refund. Tammy (Clayton) already promised she'd get me my refund as soon as possible."

Realtor Kibe Lucas voiced concerns he has heard from new home buyers about the fee and called for those wanting the transfer fee repealed in the crowded Assembly chambers to stand in a show of support, bringing nearly two-thirds of the 50-plus people to their feet.

"If the borough is looking to generate a revenue stream, they should look at expanding their tax base to include the resource riches we have in the Valley," Lucas said. "Seventy to 80 percent of the fees in this borough are paid by the property owners. They don't need another fee."

Borough Mayor Tim Anderson mentioned the possibility of reintroducing the transfer fee, asking Lucas if he would support a transfer tax of approximately $20, if there were exemptions allowed for marriages, divorce and the like.

"The wife forgave me for waiting to add her name to the deed," Swing said. "But I don't think she would like me to wait too long on the refund."

The borough plans to mail out the 3,000-plus refunds starting next week. Refunds will be sent out in batches, and the process should be complete in about four weeks, according to Clayton.