All of us in the service industry in Michigan can take a deep breath....Governor Granholm's 2% sales tax on services failed in the Senate. Are you not familiar with the propsed bill? This 2% sales tax includes taxing our real estate commissions and other industry related services. The proposed bill would be a 1.5 billion tax increase for Michigan. This type of tax, when combined with the other services which would see the increase such as insurance, title, surveys, etc, could potentially price more buyers out of the market when the thousands of extra dollars are added to their costs to purchase a home. With the already battered economy in Michigan, I feel it's a bad option for the client and Realtor/affiliates alike. Michigan would be the only state to have THREE taxes....the income tax, transefer tax and service tax which would make us the "winner" leading the nation in taxes on real estate services and property ownership.
The Michigan Realtors who took the time to write the legislators regarding th 2% sals tax on services should be applauded. According to a recent publication in the Grand Rapids Realtor Magazine, locally 562 members responded to the House Call to Action, and 981 members responded to the Senate Call to Action. Additionally, there were 110 emails from members, and 300 member constituents to Senator Mark Jansen! This was an amazing response.
There is still the potential threat of the 2% sales tax. Although the bill failed in the Senate, it has yet to be voted on in the House. For those Michigan Realtor and affiliates who have not yet done so, PLEASE contact your State Representative using the call to action link: www.takeaction.realtoractioncenter.com/campaign/house_opposition. It only takes a second of your time, however the consequences of this bill passing could be devastating long term.
Shasta Fase
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