Real estate agents' commissions are negotiable, but a proposed tax on their services wouldn't be. You'd be required by law to pay tax on any fee you pay to a real estate agent.
A tax would be levied on the services of all licensed real estate agents, among other professionals.
Such a tax would make housing purchases more expensive. Buyers and sellers who use real estate agents would both suffer increased costs, and sellers might raise their listing prices to compensate for the tax. Proposals like this also discourage development and hurt the state's economy.
A 2005 study commissioned by the National Association of REALTORS® analyzed what impact a tax on real estate services would have on the cost of purchasing a home. Assuming a 6.25% sales tax rate for Texas and including the most common services associated with the purchase of a house, the study put the increased cost of purchasing a house at $775. Add the 2% local option, and the cost rises to $1,022.
During the 82nd Texas Legislature, the Texas Association of REALTORS® worked hard to ensure that no proposals to assess such a tax passed the Texas House or Senate.
If you're concerned about this issue, talk with your Texas REALTOR® and let them know you learned about it on TexasRealEstate.com.
