There are proposals to replace local property taxes with an expanded sales tax that includes a tax on professional services—including your commissions—as well as on sales and leases of commercial and residential property.
These proposals would require the sales-tax rate to increase dramatically—the rate could reach 18-25%—which means buyers would have to come to the closing table with thousands more dollars. The association is studying what these proposals would do to the real estate industry.
These aren’t the only proposals that the Texas Association of REALTOR® will be monitoring during the 83rd Texas Legislature. Find out what else your state association is doing on behalf of its members in “How TAR will defend your interests during the Texas legislative session” in the December issue of Texas REALTOR® magazine.