Marilyn Rickert's Blog – April 2010 Archive (3)

How the FairTax pertains to rental property.



The consumption of residential housing services is taxable. In renter-occupied housing the tax is collected on a monthly basis and in owner-occupied housing, the tax is collected up front when the home is purchased for the first time.



The landlord is a seller of housing services. He/she must register with the state sales tax collection agency and file sales tax reports (probably quarterly for a person who owns…

FairTaxers:



Yes, the press and politicians will probably refer to a VAT (Value-Added Tax) as a national sales tax, so it is important for FairTax supporters to understand the differences between the two so that we can answer questions from the public.



Actually, they have much in common, but the differences are critical.