"BKS" wrote in message
om...
Recently, I am trying to put my home for sale. Broker filled out the
sales contract and mailed out to me (I am out of town..home is in
different town). His commission shows 5% PLUS sales tax on purchase
price of the home. Is it normal practice to pay state sales tax in
addition to commission the agent is getting? Why sales tax? Do
Brokers have to pay sales tax on commission they get from the sale of
the home? Home is in New Mexico.

Right now I am renting that home and the same broker is managing the
property. He charges 10% of monthly rent plus sales tax on his 10%
commission. I was renting my home for the first time, so I thought it
was normal to pay sales tax on 10% rental commission.

Now i am trying to sell home, he is tryng to do the same. Now I
realize I should never have paid sales tax on his 10% rental
commission. can anyone tell me how should I approach this situation?
Thanks.

Sales tax laws vary greatly from state to state but I have never heard of a
sales tax on rentals or sales of real property. Our state does require a
modest deed tax on the sale of property paid by the seller. Something like
1.00 per 1000 of valuation.

I would check this out with the local sales tax department. It sounds like
a rip off to me.

Colbyt