In the final days of 2023, the Edina City Council wanted to impose a 0.5% tax on single-family homes sold over $500,000 in their city. The intent of this tax was to better fund Edina’s Affordable Housing Trust Fund, and while we support expanded affordable housing opportunities in general, this tax on the sale of homes in an already squeezed market is not a healthy move for the industry.
As advocates of private property rights and your business interests, Minneapolis Area Realtors® got to work opposing the 0.5% transfer tax. Realtors® living and working in Edina were informed of this proposed item in Edina’s 2024 Legislative Platform and encouraged to contact their Councilmembers to share their opposition to the transfer tax. After what one councilmember called, “an outpouring of concern from residents,” the transfer tax was stripped from their Legislative Platform on December 19.
However, weeks later, Edina’s Housing Redevelopment Authority (which is made up of their City Councilmembers) brought back the proposed 0.5% transfer tax for discussion. Realtors® in Edina were once again notified of the reemergence of the transfer tax and reminded their elected officials of our opposition to the item.
On January 11, the Housing Redevelopment Authority met to discuss the transfer tax and were met with written and in-person concern for both the transfer tax itself, and the manner in which it was proposed without the City seeking public input on the matter. We’re pleased to report that the Housing Redevelopment Authority agreed with the decision of the City Council to eliminate any mention of a transfer tax from Edina’s Legislative Platform.
This is an important testament to the strength of Realtor® voices, and your commitment to supporting buyers and sellers not just in transactions, but at the policy-level as well. Our Government Affairs Committee will be engaging with the City of Edina to find more productive avenues to support their housing affordability efforts without the need for such a tax.
Thank you to the MAR Members who answers our call to act on this concerning and timely issue.