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Sales Tax on Appraisal Fees

OK, cool. What about tax on your fees?

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Will Granger

Thread Starter
Sophomore Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
North Carolina
I read in the N. C. Realtor today that the dems are talking about applying sales tax to broker's commissions to help offset the red ink our wonderful past Goobernor Hunt ran up with the help of the legislators. I will probably see that enacted on appraisal fees within the next few years. I think we should send all our money to the govt. so the economy will collapse totally. I think I'm taxed too much now! :roll:
 

Dan/Fla

Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Florida
Well you are not alone, Florida is talking a about a services tax which from what I was told to today would also cover real estate appraisals. More taxes are bad enough but more paper work, need to raise rates to cover all the book keeping.
 

Theresa in Oregon

Sophomore Member
Joined
Jan 18, 2002
Thank God I live in Oregon where there is no sales tax. What a pain! 26 times in the past 100 years a ballot measure in favor of a sales tax has come before the voters. 26 times the voters have said no.

Of course we do have an income tax. But I figure, at least they're getting it from me only while I actually have an income. Once I retire, my kids can pay it for me. 8)
 

Doug Ellwood

Freshman Member
Joined
Jan 15, 2002
In Canada, we have GST (Goods & Services Tax) which is 7% on everything we do, however we do get money back on GST we spend on business related items. I don't agree with it but what can we do. Theres all two things in life that I know for sure, death and tax.
 

jtrotta

Senior Member
Joined
Jan 16, 2002
Living in the constipation state; we get taxed on everything; so I don't believe they've left anything out at this point; if the state misses, then the municipality gets you. A while back I posted a remark in regards to the "pass along tax" for cable useage and wondered why we can't pass along a tax to cover our tax, actually I need to consult with an attorney or my accountant to see about offsetting some costs. The cable company noted it as a gross earnings tax, which I assume means they use this feature to increase their bottom line :?

It's so deep here, we could by all the laxatives on the market today and still get no relief :x How do you spell relief??????
 

Tiny280

Sophomore Member
Joined
Jan 17, 2002
Professional Status
Licensed Appraiser
State
Ohio
There doesn't appear to be a move on for a services sales tax in Ohio - YET. The Ds try to pass that into law every five or ten years, and will probably succeed eventually.

Speaking of taxes, did everyone else get the notice about the automatic increase in the Al Gore tax on phone services. That increase amounted to approx $15 per month for our small shop (3 phone lines & a DSL). It's puzzling :x that the feds need even more money to wire each classroom to the internet when connectivity fees and PC prices have been falling :evil: :?:

Good luck keeping the sales tax off the books in OR - once it's approved, it will NEVER be repealed and will only increase over time. In OH, the sales tax in most areas is now at or over 6%, which is roughly triple the rate from 1960.
 

Caterina Platt

Senior Member
Joined
Jan 17, 2002
Professional Status
Certified Residential Appraiser
State
New Mexico
New Mexico jumped on that band wagon some time back. Gross receipts tax on real estate commissions, appraisal fees, medicines, groceries, anything you can think of. There's also income tax, and this nifty thing called consumption tax (I think that's the name). This tax is for anything you buy to use in the course of your business from an out of state provider. This tax is applicable regardless of whether the item is or is not available from an instate provider. Cool huh? :x

We don't get to deduct the gross receipts tax, nor are we exempt from it unless the items we purchase are raw materials of some sort being used to manufacture a product that eventually will be subject to the GRT. This exemption does not apply to an appraiser when he purchases paper, ink, toner, etc. because I'm not manufacturing anything. :x

Sorry for grumbling, this is a sore subject with me, and reading about some of the other more populous and advanced states without this counter productive tax system makes me even madder!! When will these idiots in Santa Fe learn that this tax structure actually repels business and industry?
 

Bill S

Junior Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
Illinois
I can't take anymore gov't paperwork. I hope this is just passing rhetoric
 

Damon Pedersen

Junior Member
Joined
Jan 18, 2002
Professional Status
Certified General Appraiser
State
Iowa
Sales Tax on Appraisals, Where do I start??

I am certified in Iowa, Minnesota, and South Dakota due to living in the corner of Iowa right by the other two states. South Dakota requires sales tax be charged on appraisal fees. So I will tell you how it works.... Sales Tax varies throughout the state depending on location. The state tax rate is 4%. Cities may impose taxes from 0-2% also. So the total taxable rate varies from 4-6%. All rural properties obviously are taxed at only 4% since their is no city tax. When you do an appraisal in a city or town you need to look up what their tax rate is, usually 1 or 2%. So then when I type up the bill I just tack on the appropriate rate. That is the easy part.

The time consuming part is when you file the return. You need to separate it out by each city, town, etc. that you did work in so that each city gets it's respective appropriate tax. That takes some time. I have a good system though so it doesn't take too long.

In all cases, the customer pays the tax, not me. I will not eat the tax regardless of how much they beg. Heck, move over here to Iowa if you don't want to live in a state (South Dakota) that charges tax on basically everything. But, then again South Dakota has no state income tax so that is why they need to tax ya to death on everything else.

Man how I like doing appraisals in Iowa and Minnesota when you dont have to worry about that sales tax crap. So my suggestion is if your states are considering this, do as much as you can to stop them, because messing with sales tax is just no fun.

Damon
 

Will Granger

Thread Starter
Sophomore Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
North Carolina
Damon,
Yikes :!: Sounds like we will eventually be in for a nightmare. I have a little retail enterprise that keeps the bills paid and I send in quarterly tax. If you can do Excel, that makes keeping up with all that a little easier. If people don't want to pay the tax, I guess you could get them to call their congressperson and ask why there is the tax. :wink:
 
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