New Year, New Tax?
Proposed Real Estate Tax
In early February, the Ohio House Finance and Appropriations Committee heard discussion of a potential real estate tax change that could be implemented. As discussed in the video- housing, construction, renovations and repairs have been exempt from the tax talks- but the real estate industry may be facing changes in the near future.
The potential service tax would be applied for all REALTORS using the sample below taken from the video.
At the sale of a home, the agent receives commission, and the tax would be applied to the commission because it is a service provided by the REALTOR.
A $100,000 home sale
$6,000 commission
Sales tax sample of 6% is $360
The tax amount of $360 on a $100,000 sale sounds small, but the name of the game is to sell, sell, sell! And those taxes would add up throughout the year. The sales tax would include a ¾% vendor discount, similar to the sale of goods. The 50% small business income tax cut is also included in the discussions, as well as a 20% reduction- which would apply to many REALTORS as well. The main issue of concern is essentially whether or not we should be adding taxes to one of the markets with the biggest potential favorable impact on our country!
Carl S
8:07 am on Saturday, March 2, 2013
"No one making under $250,000.00 will see a tax increase. NO ONE. Not ONE PENNY". Said by the idiot YOU elected!!
bob lang
2:02 pm on Saturday, March 2, 2013
Are you calling our wonderful Republican govenor an idiot.? This is a Ohio state tax or are you so confused that you think the Federal government is involved?
william
9:35 pm on Saturday, March 2, 2013
Carl S This is a state tax. The President has nothing to do with this. You cant blame the President on this one !!!
Carl S
7:58 am on Sunday, March 3, 2013
I know william, I was generalizing on the whole cha-bang. Just a weary citizen :-)
Megan Rozsa
10:33 am on Monday, March 4, 2013
Two comments were deleted from this blog for violating our Terms of Use. No name-calling, please. Thanks for reading!
bob lang
3:18 pm on Monday, March 4, 2013
Since when is correcting the spelling of a word, in this case shebang instead of cha-bang considered name calling?
Matt
10:49 am on Monday, March 4, 2013
That's DOUBLE TAXATION as the REALTOR would already pay state income tax on the $6,000
Robert Bodi
1:04 pm on Monday, March 4, 2013
Hello Matt. This "double taxation" as you call it is already imposed on everybody who purchases goods, and some services. I assume that the realtors will just pass the tax on to the sellers, like retailers pass on the sales tax of goods on to the purchaser.
If you think that taxes are too high (as I do), then you need to direct your ire to those who keep spending the public's money. But one advantage to using sales taxes to reduce income taxes (which is what is being done here) is that it encourages working (income taxes, like any taxes, act as a disincentive to the item taxed, which is earning income in the case of income taxes--of course, sales taxes disincentivise purchases). Overall, this new tax is being used to reduce the income tax rate, and thus will not give more money to the elected officials to just spend more and more.
M. Brigitte
11:19 am on Monday, March 4, 2013
Governor Kasich wisely decided to keep the job creators in Ohio by eliminating the horrible estate tax that was driving them to Florida. This is simply another way (along with service fees) to compensate for the amount in budget needed for public safety that was previously funded by the ILLEGAL estate tax.
Those of you who complain about the Governor's plan: do you want the wealthy to flee and leave this state high and dry? Or do you want to keep them here but not allow a service fee for realtor commissions, forcing law enforcement to be cut so that thugs can run loose and turn this into "Detroit, Ohio?"
Garry Kanter
11:46 am on Monday, March 4, 2013
"job creators"
That's funny.
James Thomas
11:53 am on Monday, March 4, 2013
M.Brigitte,
I have to hand it to you. My wife and I were actively researching other states to move to rather than pay the Ohio Death Tax. Now we are looking at properties in Bowling Green, where my beautiful daughter has settled, with the possibilities of Grandchildren, to really enjoy the latter part of our lives with the enriching presence of life.
Garry Kanter
12:17 pm on Monday, March 4, 2013
That's a lovely story, James Thomas.
I guess to avoid the "OHIO DEATH TAX", you would have given up all this:
"Now we are looking at properties in Bowling Green, where my beautiful daughter has settled, with the possibilities of Grandchildren, to really enjoy the latter part of our lives with the enriching presence of life."
James Thomas
1:10 pm on Monday, March 4, 2013
Yes Garry Kanter,
I would have been FORCED to give that up rather than passing on the legacy of my entire life's hard work and savings to my daughter and her children so that the Progressive Ideal of wealth distribution could be realized. Is that what you want me to do?
william
3:43 pm on Tuesday, March 5, 2013
James Thomas You were going to give up time with your family just to avoid a 6 % tax that doesnt even kick in to $330,000. You have to be kidding. I feel sorry for you if that was a true statement. I really hope you were not telling the truth.
Nathaniel Brooks
1:05 pm on Monday, March 4, 2013
Gary, of course James would have given that all up so he wouldn't see a tax increase because he's a sorry excuse for an American and he is also a sorry excuse for a man. it is usually those amongst us who feel the most entitled, who are also the most unreasonable. The "job creators" was also a funny comment. When was the last time America produced anything? I would say it was probably during the mid seventies to late eighties. After that America went into full blown production of cry babies. If the World War II generation could see us now lol they would laugh and then shortly after probably be reduced to tears. Also M. Brigite is incompetent at best. The top ten percent of wealth in Ohio resides in Geauga County, anyone with half a brain knows that. And trust me they aren't going anywhere. Ohio has one of the cheapest costs of living among all the 49 contiguous states. Ohio also has one of the largest police states. Prisons are big business and we know we wouldn't want to short sale big business lol. I know, instead of sending all our scrap metal to china so that they can make steel for us, we should start producing steel right here in the the USA. The fat cats sold America out and the only way to get her back, is to take her back. We all know everyone is too faint of heart for an Idea like. I can't wait to see the new Super Walmart in South Euclid. I have a Native American friend and he told me that he hopes everyone goes home. Cheers!
James Thomas
1:28 pm on Monday, March 4, 2013
Mr. N. Brooks,
"If the World War II generation could see us now lol they would laugh ".
No they would WEEP that you could deny them and what they fought for.
Garry Kanter
1:45 pm on Monday, March 4, 2013
The Greatest Generation got everything from the federal government. Period. End of discussion. I grew up in such a household.
Garry Kanter
1:49 pm on Monday, March 4, 2013
No, James Thomas, that would not be FORCED on you. That would be your choice, to be away from your family in order to avoid a tax after you are gone.
Otherwise, I only defend things I've posted. Not other people's rantings.
James Thomas
2:02 pm on Monday, March 4, 2013
Mr. Kanter,
"The power to tax is the power to destroy"
What part of Forced by power of law do you deny?
James Thomas
1:49 pm on Monday, March 4, 2013
Mr. Kanter,
The Greatest Generation GAVE eveything so that the United States, the Western World, and the Idea that FREEDOM would not perish from the earth. How did you grow "up in souch a household" without understanding this?
Garry Kanter
2:00 pm on Monday, March 4, 2013
I could start naming all the programs that my dad, a WW II veteran, participated in at the federal level, and I would be here all week.
James Thomas
2:21 pm on Monday, March 4, 2013
Mr. Kanter,
I could start mentioning all the overstepping of governmential bounds that my Step-father, a WW II veteran of Paton's 3rd Army, warned me about before he died in 1985, but I would be here all week. And they are happening now with your support.
M. Brigitte
3:04 pm on Monday, March 4, 2013
The difference is that American veterans EARNED the aid given to them by the federal government. It's sad and ironic that the prosperity that they brought to the U.S. contributed to the "entitlement" class of welfare queens, undocumented immigrants and liberal, wanna-be "socialists" who haven't made any sacrifices for this country, yet believe they deserve a piece of the federal aid pie!
Garry Kanter
3:10 pm on Monday, March 4, 2013
The programs existed for more than veterans. And the fed was hiring like crazy.
Now, you guys are grasping for the "morality" card.
Count me out.
James Thomas
3:21 pm on Monday, March 4, 2013
OK,
You're out.
Garry Kanter
4:33 pm on Monday, March 4, 2013
Top tax rate was as high as 91%. The top earners paid it without complaint.
There were no "homeless" vets.
James Thomas
9:13 am on Tuesday, March 5, 2013
Rate of Confiscation 91%,
let's call this what it is.
Garry Kanter
10:06 am on Tuesday, March 5, 2013
Well, I'm simply stating the facts. You can keep doing whatever it is that you're doing.
James Thomas
11:12 am on Tuesday, March 5, 2013
and Mr. Kanter,
you can keep whatever it is you interpret your facts to be.
Murphy-Solon
6:14 pm on Monday, March 4, 2013
Listening to some on this patch, you would think that our military finds their soldiers in upper class neighborhoods. Bush, Cheney, McConnell, Limbaugh, Nugent and LaPierre have something in common. They all refused to fight for their country in Viet Nam. Our all-volunteer military is stocked with those from the lower classes.
MZ
8:12 am on Tuesday, March 5, 2013
Just curious, did Clinton, Reid, Obama, Or Durbin fight for their country in Vietnam Nam?
Garry Kanter
10:07 am on Tuesday, March 5, 2013
I'm thinking the current President would have been too young to serve during the Vietnam era.
James Thomas
11:53 am on Tuesday, March 5, 2013
To be fair,
both Sarah Palin and Joe Biden have children in the U. S. Armed Services.
MZ
1:07 pm on Tuesday, March 5, 2013
Garry, fair enough. He also would have been too stoned hanging out with the choom gang.
bob lang
8:17 am on Tuesday, March 5, 2013
Where is Vietnam Nam?
MZ
9:03 am on Tuesday, March 5, 2013
Right next to Cambodia Bodia. Sorry Mr. Lang, I got auto-corrected. Are you lower class? Did you fight in Vietnam?
MZ
8:18 am on Tuesday, March 5, 2013
There is a spending problem, not a revenue problem with the federal, state, and local governments. This tax might seem ok to most, it doesn't impact them. Similar to additional taxes on tanning, cigarettes, manicures, etc... If you don't purchase those products or services, why would you care. The problem is clearly that it won't stop there. At some point you will care. At some point it will impact you and your livelihood.
As Americans we need to be more self reliant. It's is a shame to contemplate what will become of this once great nation.
Mark Zetzer
9:52 am on Tuesday, March 5, 2013
Absolutely, taxes are out of control. It's long past time to restore the proper and limited role of government at all levels to one that protects our life, liberty and property, and reserves the production and distribution of goods and services to the private, voluntary sector.
Garry Kanter
10:08 am on Tuesday, March 5, 2013
Show of hands, please. How many of y'all consider yourselves Libertarians?
James Thomas
11:14 am on Tuesday, March 5, 2013
Show of hands Mr. Kanter,
how many of you Progressives consider yourself Reasonable and Sane?
Garry Kanter
12:03 pm on Tuesday, March 5, 2013
So, is that one "affirmative" vote for being a Libertarian, James Thomas?
James Thomas
12:08 pm on Tuesday, March 5, 2013
Nope,
Registered Republican since '94
Republican Contributor since '00
Tea Party since '08
MZ
1:09 pm on Tuesday, March 5, 2013
Show of hands, please. How many of y'all who think taxes should be higher voluntarily write a check to the fed, state, or city government in excess of what you owe?
Garry Kanter
2:10 pm on Tuesday, March 5, 2013
Ah, once again, the "Put up, or shut up", canard in lieu of facts.
Garry Kanter
2:13 pm on Tuesday, March 5, 2013
That would be a Grover Norquist Pledge requiring branch of The Tea Party, James Thomas?
James Thomas
2:33 pm on Tuesday, March 5, 2013
Ahh Mr. Kanter,
The Tea Party Movement is too diverse and widespread to be pigeonholed in such a way.
william
3:48 pm on Tuesday, March 5, 2013
The tea party movement got Obama re-elected !!!!
Murphy-Solon
3:54 pm on Tuesday, March 5, 2013
The Tea Party is wholly financed by Republican groups. The original members quit because the Tea Party sold it's soul. Raising taxes is the best way forward. The American people want spending cut as long as it doesn't effect them. Raise taxes to pay for our current spending is the only way for Americans to feel the pain and be more realistic. Politicians can't truly cut spending until the people accept sacrifice.
Garry Kanter
5:02 pm on Tuesday, March 5, 2013
It's a simple question regarding Grover Norquist, his pledge, and the requirement to abide by it.
Murphy-Solon
6:50 pm on Tuesday, March 5, 2013
I don't believe that Norquist's intentions have been pure. Who, in their right mind, would have politicians sign pledges since the 80's not to raise taxes but neglect to have those same individuals sign pledges not to raise spending? That's a prescription for disaster. A closer look at Norquist's PAC shows that his biggest donors are corporations. It's in corporate interest to keep taxes low but these recipients of huge government contracts would lose revenue if government spending is cut. Very curious indeed.