Ohio Tax Commissioner addresses the proposed real estate sales tax during House hearing
On February 13, 2013
By Carl Horst
Ohio Tax Commissioner Joe Testa offered an explanation of how the proposed sales tax would apply to a real estate transaction during his testimony before the Ohio House Finance & Appropriations Committee yesterday. Testa was responding to a question from Rep. Matt Lundy (D-Elyria).
Testa provided an example of what would constitute a taxable service for people using an agent to sell a home — 5 percent of the commission earned. He stressed that the imposition of a sales tax would not be anti-competitive, as all REALTORS would have to collect the tax.
Additionally, Testa noted that REALTORS would get to keep 3/4 of a percent of the sales tax being remitted as a vendor discount to offset expenses in the collection process. Further, he highlighted the proposed 50 percent small business tax cut and 20 percent reduction in the personal income tax included in the budget plan.
The Ohio Association of REALTORS will be conducting a complete review Gov. John Kasich’s $63.3 billion, two-year budget plan. The organization’s Legislative Steering and Executive Committees will be holding special meetings this month to address the issue.
(NOTE: If the above video player doesn’t play on your device, click here to access the testimony. The segment dealing with the real estate question runs from the 99 minute mark to roughly 103.15.)