More States Considering Onerous Remodeling Tax

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Connecticut, Texas, Illinois and Nebraska are among the states that are considering tax proposals on home repairs, renovations and labor. NAHB and HBAs across the nation oppose such revenue-raising measures for a number of reasons. A sales tax on such services is regressive in nature, and could discourage home owners in older neighborhoods from making needed safety-related repairs. Moreover, state taxes on remodeling services would provide an incentive for unlicensed contractors to prey on unsuspecting home owners. Jim Perras, CEO of the Home Builders & Remodelers Association of Connecticut, lays out several reasons why a sales tax on the repair and renovation of homes is counterproductive and bad public policy in this op-ed. For state executive officers who are battling this proposal, the NAHB Economics Department may be able to create an economic analysis for your state. For more information, contact David Logan at 800-368-5242 x8448.

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