A tale of a dark and snowy night is usually reserved for mystery novels. But for Tim Kent, outgoing executive vice president of the North Carolina Association of Realtors, the impact of a winter’s night in Avery County is key to the story of the narrowest victory over the land transfer tax he’s battled for three years.

Kent characterized NCAR’s clean sweep over the home tax — 24 wins and no losses, including the 35-vote win in Avery — as the organization’s greatest achievement and an example of how a committed effort can have a dramatic impact.

Snow fell heavily on Feb. 3, 2009 in the mountains of western North Carolina. Because of the bad weather, results of the election were phoned in to Avery County officials that night. Initial reports said the tax referendum had passed by 25 votes, but after a canvas turned up errors in the count from two precincts, the result was reversed. The final tally showed voters had actually rejected the transfer tax by 35 votes.

The razor-thin defeat was starkly different from the many landslides against the 0.4 percent tax. If approved, the tax would be levied on the sale of raw land and residential and commercial property. On 24 occasions in 23 counties, North Carolina voters have defeated the effort, many by more than a 2-to-1 margin. (see chart)

In two cases, the anti-tax vote was nearly unanimous. In November 2007, just 3 percent of Graham County voters and 7 percent of Harnett County voters said yes. Gates County voters have said no twice. The second time, the no vote grew from 59 percent to 70 percent.

“Had the tax been approved in all of those counties, it would have had a $60 million-plus impact annually for people trying to sell property in those counties,” Kent said. “Had those taxes been approved, can you imagine how much more difficult it would be now to try to sell your house?”

Kent rejects criticism that NCAR’s push is more tied to helping Realtors than their customers. He said the transfer tax doesn’t have a financial impact on Realtors — the tax is paid by the seller — but he acknowledged an added tax is an impediment to a real estate transaction. “This was an effort that the Realtor association, with its allies, took on, on behalf of people who are trying to sell their property.”

While Avery County’s vote was the most suspenseful, Orange County’s May 2008 vote was the most challenging for Kent. The hotly contested Democratic presidential primary pushed turnout among Chapel Hill’s college students and other young people — people who don’t typically own property — to an unusually high level.

Orange County’s progressive political establishment was also out in force. “The university community was actively working in support of the land transfer tax, the county commissioners in Orange County appropriated $100,000 as part of a public information campaign, so it was a very challenging political environment,” he recalled. Despite it all, Orange County voters defeated the referendum 66 percent to 34 percent.

State legislators gave counties the authority to impose, with voter approval, the transfer tax or a 0.25 sales tax, but not both. Kent cautions against thinking the 24-to-0 track record renders the transfer tax dead. Ten counties have passed the sales tax, leaving 90 counties in the transfer tax pool.

Kent isn’t aware of any county planning to add the transfer tax to the ballot in 2010, but he keeps his eye on several groups, including the North Carolina Association of County Commissioners. NCACC was key to the legislative push that gave local governments the authority to put the two taxes on the ballot.

The NCACC Web site shows the group wants counties to have authority to impose the tax without voter approval. The site lists the following as NCACC’s Priority Goal for the 2009-10 legislative biennium:

Seek legislation to allow all counties to enact by resolution or, at the option of the Board of Commissioners, by voter referendum any or all revenue options from among those that have been authorized for any other county, including local option sales taxes, prepared food taxes, impact fees and real estate transfer taxes; and to preserve the existing local revenue base.

Kent also points to the retirement announcement by a legislative heavyweight. “It’s important to note that Sen. David Hoyle [D-Gaston] has twice sponsored legislation to repeal the local transfer tax option,” Kent wrote in an e-mail. “With his announced retirement, Home Tax opponents have lost a valuable ally in their efforts.”

Donna Martinez is a contributor to Carolina Journal.