Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Steve Lokness who wrote (26467)	3/28/2005 6:03:53 PM
From: Steve Lokness	Read Replies (1) \| Respond to of 116555

Correction. I called the Dept of Revenue as I understood that sales tax was paid on a new home - but not a used home. The issue of flipping made me pause. Soooooo, here is what the state said; The builder is responsible for the sales tax of a new home including everything that goes into it - EXCEPT, the land. That is JUST on new homes, so that you could flip with no additional tax other than the Real Estate Excise Tax. The builder - or developer - would have to pay sales tax on any improvements that went into the land such as cost of paving, extending utilities etc. I was INCORRECT in saying that a spec builder pays tax on the entire cost of the house. Sub contract work is charged sales tax, so most - but not all - of the cost of a new home is subject to over 8% sales tax. Steve