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Today, your MAR Board of Directors unanimously voted to oppose the Governor’s proposal to tax real estate services. According to the Board, any additional taxes on an already struggling state economy and depressed real estate market will have dire consequences. The proposed sales tax would be one more harmful step in continuing down the path of Michigan’s economic downfall.
Taxing REALTORS®, along with other industry-related services, increases the cost of purchasing a home and disqualifies a substantial number of potential buyers from the market. Additionally, this tax does not take into account the costs of collecting and remitting the tax. So the 2% increase could realistically incur cost in the range of 4-5%. The Michigan Association of REALTORS® is in the process of modeling these numbers to determine their effect on homebuyers and sellers, as well as the increased compliance cost to our membership.
As of yet, no legislation has been introduced in either the House or the Senate. The MAR staff continues to meet with key legislators to prevent this proposal from even being considered for a vote. We will keep you up to date with all news pertaining to this unacceptable proposal, and use all resources necessary to combat it. Once a bill is introduced, we will enlist your help in an aggressive “Call to Action” to contact your legislators about the devastating effects of this proposal on real estate industry. Timing our communications in this way ensures maximum impact and effectiveness. | 
