Tell Your Legislator “NO” to a New Tax on Real Estate Services

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The housing recovery in Northeast Ohio is under attack. Do you have just a few minutes to help protect the real estate industry? As a REALTOR® your voice needs to be heard and your industry needs to be protected.

As you may know, expansion of the sales tax to include services, such as those in the real estate industry, was included in Governor Kasich’s Budget proposal for Ohio.

CABOR believes that the recent market turnaround could be derailed by the imposition of a sales tax on every aspect of a housing purchase, including commissions, home inspections, appraisals, mortgages, warranties, radon inspections, title searches and more. This also impacts commercial leases.

Let’s make sure the REALTOR® Party is heard!

Contacting your state legislator is easy. Follow the links below, enter your home zip-code, and either email or call the office. Tell your elected officials, “Do no harm & oppose the sales tax expansion on real estate services! Adding any costs to homeownership and small business could have a devastating impact on the fragile housing recovery in Northeast Ohio.”

Contact Your State Representative Contact Your State Senator
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3 responses to “Tell Your Legislator “NO” to a New Tax on Real Estate Services

  1. Dwayne Helkowski says:

    Realtors, now is the time to let your State Rep and State Senator know how you feel about this TAX. Let them know if they vote to increase the taxes on Real Estate Services that you will vote them out in there next election cycle. This is what I suggest all Realtors need to do. Unless you would like to pay more taxes. Remember, you can never satisfy Federal or State Officials. Give ME, Give ME Give Me. I remember when Real Estate Transfer Tax we paid it in tax stamps (change) now they have it up to Hundreds of Dollars all without a vote of the people. They just passed the new .0380 tax on on certain welthly people. Its time to reduce the size of Federal and State Goverment. Let your representitives know that this is not acceptable any more. Yes , I’m 100 percent opposed to raising taxes on Real Estate Services. Dwayne Helkowski

  2. Russ Kitzberger says:

    Most REALTORS and Brokers would benefit from the new tax plan in their pocketbook.

    Along with the tax increase is a 50% reduction in state tax on business income (schedule C income) and pass through entities. The plan also reduces total state taxes.

    A single (unmarried) real estate sales person working as a 1099 contractor netting $40,850 per year in total business income, would pay $1679 of Ohio tax under the 2012 law. That amount would go down to $776 at the proposed 50% business income rate and the reduced 2013 plan.

    Furthermore, it expands the sales tax across state lines, which would finally bring revenue into the state from the out of state service companies who provide services in Ohio.

    Source: http://taxfoundation.org/blog/ohio-tax-plan-broadens-sales-tax-lowers-income-tax-includes-%E2%80%9Csmall-business%E2%80%9D-gimmick

    • CABOR says:

      Hi Russ, and Thank You for your comment. As you know, CABOR is opposed only to the expansion of the sales tax on real estate services. This expanded tax would be applied your commissions, home inspections, appraisals, mortgages, warranties, radon inspections, title searches, commercial leases and more.

      The Ohio Association of REALTORS hired one of the best tax consultants in the United States to analyze this proposal, and in every scenario, it was not good for the industry. Here is an excerpt from testimony that the OAR Executive presented during Committee hearings, “The individual income tax reductions would help these small businesses, but not sufficiently, to offset the other sales tax provisions. The sales tax portion of the proposals would impose a tax on commission income even though the agents already pay an individual income tax. It would also require small businesses to incur an additional level of complexity and cost by administering the sales tax. In a nutshell, such typical members would receive $480 of personal income and sales tax savings but then would be required to charge a sales tax on their total commissions of $1,957, or otherwise reduce their commissions. There is significant fear in the industry that agents would not be able to pass through such costs.”

      We encourage you and anyone interested to follow the latest updates online at: http://ohiorealtors.org/public-policy-2/service-sales-tax/

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