WASHINGTON, D.C. – February 27, 2013 – (RealEstateRama) — As the legislature continues to look at ways to fund this proposal, many ideas have been presented. Recently, a sales tax on services has been thrown into the mix of funding mechanisms being discussed.
As you communicate with other REALTORS®, it is important to remember four key points on how a tax on services would be detrimental to our industry:
1. A tax on services was tried before in 2007; however, the significant public outcry led to its rapid repeal within three months after it was implemented.
2. A sales tax is already paid in a real estate transaction – the transfer tax.
3. If all of the services related to a real estate transaction were taxed, it would dramatically increase the cost of residential and commercial real estate and create a significant drop in real estate values.
4. Housing is a basic need, just like food and medicine, and should not be subject to a sales tax.
We have been in close contact with the Snyder Administration, legislative leadership on both sides of the aisle, and the business community to express our concern about the effects of a tax on services for our industry. At this time, a service tax remains only one of many options on the table.
We will continue to fight this proposal and will keep you up to date as road funding discussions progress.
