REALTORS(R) Oppose Gov. Edward G. Rendell's Proposed Tax on Professional Services in Real Estate Transactions

Survey reveals Pennsylvanians said 'no' to the proposed plan that would increase the cost of buying and selling a home

LEMOYNE, Pa., March 24 /PRNewswire-USNewswire/ -- Members of the PA Association of REALTORS® (PAR) today rallied at the state capitol voicing opposition to the proposed tax on professional services in real estate transactions.

Don Roth, PAR president, unveiled a survey revealing that 70 percent of Pennsylvanians polled opposed the proposed taxes that would drive up costs for consumers in the home-buying and selling process.

"Consumers in Pennsylvania will have to spend thousands of dollars more to purchase a home if Gov. Rendell's plan is enacted," said Roth. "Housing will become less affordable and beyond the reach of many Pennsylvanians."

According to Roth, the proposed tax would affect every profession and service connected to a real estate transaction. In addition to paying a 4-percent tax on real estate agent/broker services, consumers will have to pay a 4-percent tax on appraisals, attorney services, credit reports, mortgage originations, home inspections, surveys, title searches, construction, architectural services and site preparation.

"Taxing professional services involved in the home-buying and selling process will reduce demand for housing, something Pennsylvania cannot afford. Decreasing the demand for housing will only drag out the amount of time it takes for the state's economy to recover," Roth said.

Gov. Rendell's proposed 2010-2011 budget includes reducing the state sales tax to 4 percent but expanding it to include 74 currently exempted items such as professional services.

"Homebuyers and sellers are already taxed via Pennsylvania's Realty Transfer Tax (RTT), which is among the highest in the nation," added Roth.

The survey conducted by Strategic Guidance Systems of Florida polled 1,000 likely voters regarding the proposed state budget, taxes and the political environment in Pennsylvania.

Fifty percent of those polled disapproved of Gov. Rendell's proposed 2010-2011 state budget.

Joel Searby, vice president of Strategic Guidance Systems, said the survey revealed that the proposed budget would be a voting issue in 2010. "When respondents were asked how they would vote if they knew their legislator supported the budget, more than 50 percent said they would be voting for someone new," Searby added.

SOURCE Pennsylvania Association of REALTORS(R)