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New Year, New Tax?

The Ohio House Finance and Appropriations Committee has discussed a potential tax on REALTOR earned commissions- Read about the tax and watch the video here!

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!

 

http://ohiorealtors.org/2013/02/13/ohio-tax-commissioner-addresses-the-proposed-real-estate-sales-tax-during-house-hearing/

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william March 05, 2013 at 08:42 PM
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.
william March 05, 2013 at 08:48 PM
The tea party movement got Obama re-elected !!!!
Murphy-Solon March 05, 2013 at 08:54 PM
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 March 05, 2013 at 10:02 PM
It's a simple question regarding Grover Norquist, his pledge, and the requirement to abide by it.
Murphy-Solon March 05, 2013 at 11:50 PM
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.

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