WASHINGTON, Nov. 9, 2015 /PRNewswire-HISPANIC PR WIRE/ -- This week, National Association of Realtors® President Chris Polychron and Puerto Rico Association of Realtors® President Edgar Morales sent a letter to Puerto Rico's House of Representatives to show support for Bill PC2566, which would exclude real estate brokerage services from the commonwealth's Sales and Use Tax and the Value Added Tax.
Below is a statement from Mr. Polychron and Mr. Morales, as well as the text of the letter:
"This legislation recognizes that a tax on brokerage services is a tax on homeownership," said NAR President Chris Polychron. "Instead, we should strive to lower barriers for middle-class families looking to buy or sell a home. Bill PC2566 is important to the business of real estate and the general economy, and Realtors® stand squarely behind it."
"The Puerto Rico Association of Realtors® is grateful for the work that's been done so far on Bill PC2566," said PRAR President Edgar Morales. "This bill will help support homeowners and prospective buyers in Puerto Rico and recognizes the important role that real estate plays in our economy."
The text of the letter is as follows:
On behalf of the over 400 members of the Puerto Rico Association of Realtors®, and the over one million members of the National Association of Realtors®, we strongly urge the Puerto Rico House of Representatives to adopt Bill PC2566 to exclude real estate brokerage services (residential, commercial and industrial) from the Sales and Use Tax and the Value Added Tax.
While most U.S. states impose a sales tax on at least some services, very few states apply these taxes to real estate services. Studies from the National Association of Realtors® and the Texas A&M University Real Estate Center confirm that adding a tax on real estate brokerage services would have a detrimental effect on the housing industry.
Additionally, these new taxes will have a negative impact on middle-class families who are striving to buy homes and contribute to the Puerto Rican economy.
Taxes on commercial real estate brokerage would also pose a threat to future economic development by adding to the cost of business operations in Puerto Rico.
We respectfully ask the Puerto Rico House of Representatives to adopt Bill PC2566 to exclude real estate brokerage services from the Sales and Use Tax and the Value Added Tax. Thank you for your consideration of this very important matter.
Chris Polychron, President
National Association of Realtors®
Edgar F. Morales, President
Puerto Rico Association of Realtors®
Information about NAR is available at www.realtor.org. This and other news releases are posted in the "News, Blogs and Videos" tab on the website.
SOURCE National Association of Realtors