Ohio Real Estate Sales Tax
As it stands today starting on September 1, 2013 there will be an Ohio Real Estate Sales Tax on these items:
- Property sales agents (real estate or personal),
- Real Estate management fees (rental agents), and
- Real Estate title abstract services.
The new sales tax will be at a rate of 5%. So if you pay a Real Estate professional $2,000 in commission, you will be paying the state $100 in sales tax for their services.
Reading Commissioner Testa’s Testimony, the general sales tax increase is to be less impacted by fluctuations in income tax revenue. The fact that the sales tax is not only on goods but also on services really demonstrates the shift in Ohio’s economy from a goods and population based economy to a service based economy.
The Good, the Bad, and the Ugly
The Good: Income taxes will be decreasing which will give us a bit more money in general in our pocket.
The Bad: Sales taxes are going to be applied on services that we are not use to paying a sales tax on… However, the impact is $50 for every $1,000 spent.
The Ugly: Whether it is income taxes or sales taxes, no one ever likes paying taxes. Ever. Taxes are a necessity in our lives to keep our Government viable. The lowering of the sales tax; but, broadening the outreach of the services included in the sales tax will (in my opinion) help the Ohio tax base become more stable.
For More Information
You can read the full list of where the sales tax (besides Real Estate) will be applied along with the Commissioner Testa’s Testimony by clicking on this link. Keep yourself informed on what will impact your purchases.