Kate Marshall Wants Fannie Mae, Freddie Mac to Pay Transfer Taxes
CARSON CITY, Nev. (AP) -- Nevada Treasurer Kate Marshall wants Fannie Mae and Freddie Mac to pay up when it comes to real property transfer taxes levied when a home is sold.
Marshall says a 2008 memo from the state Department of Taxation exempting the federal mortgage giants was wrong. She's asking the state agency to officially change the policy.
The Las Vegas Sun reports removing the exemption could raise about $5 million annually.
Fannie Mae and Freddie Mac were created by Congress to back residential mortgages. Their charters say the corporations will be exempt from state, county and other local taxes.
But Marshall argues the transfer tax is an indirect tax, like a sales tax, and that the companies are not "instruments" of the federal government, which would make them exempt.