This just in from the Michigan Association of Realtors: “Granholm’s Tax on the Real Estate Industry = Pay Cut for Realtors.”
Michigan Governor Jennifer Granholm is proposing a sales tax on real estate commissions, along with numerous other services one would use in either building a new home or improving an existing one. I believe it was the housing industry and all it’s subsideries that has kept us alive the last few years.
Under what has been dubbed the “Two-Penny Plan”, Governor Granholm is proposing the new sales tax on services for the 2007 and 2008 fiscal years.
Here are some of the services that would be taxed under the new proposal: real estate commissions, real estate title services, legal services, land surveying, engineering, general construction services, carpentry, painting, plumbing, grading and excavating, well drilling, etc., etc., etc.
According to the Michigan Dept. of Treasury, six other states already tax real estate commissions, and supposedly at a higher rate. Tennessee eliminated it ! Go Vols !!
If you are a realtor in Michigan, you need to pay your RPAC Dues so we can fight this.