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#1857353 - 10/01/13 05:20 PM Sales tax
Denovo Co Offline
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NM
If sales taxes are added to services rendered, for example title services, can the taxes be included in the APR calculation? Do they need to be itemized on the HUD for them to be exempt or does that matter?

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#1857365 - 10/01/13 05:36 PM Re: Sales tax Denovo Co
RR Joker Offline
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Sales tax on title services?

Is this a 'tax' that would be due even in a cash transaction in your state?

I'm not sure what this sales tax is in order to attempt an answer.

FWIW, actual title services would not be included in your APR calculation.
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#1857425 - 10/01/13 07:18 PM Re: Sales tax RR Joker
Denovo Co Offline
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Posts: 375
NM
These are state sales taxes. When a title agent conducts a closing for our bank, there are sales taxes added to the closing fee (which is a pre-paid finance charge) and each title company discloses the fees differently. Some will itemize the closing fees and sales taxes separately in the 1100 series and some will just include the sales tax in with the closing fee.

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#1857447 - 10/01/13 07:53 PM Re: Sales tax Denovo Co
RR Joker Offline
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If it is a normal part of the title services, then it should be lumped, unless the program or state requires itemization. At any rate, I don't see it as a ppfc as it appears connected to the title services and not a fee to conduct the closing itself.
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#1857456 - 10/01/13 08:03 PM Re: Sales tax Denovo Co
hgliii Offline
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Posts: 574
I am confused about "sales tax". In TN we have a Transfer Tax. I am wondering if that is same thing as Sales Tax in your state. If that is the case they are not PPFC as they are collected on all Real Estate Sales whether it is cash sale or financed.

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#1857463 - 10/01/13 08:17 PM Re: Sales tax Denovo Co
RR Joker Offline
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Transfer tax (that came to my mind as well) would not be a tax on title services...if it was TT or intangible taxes, it would be a Block 8/Line 1203 fee.

I think they are talking about something totally different here.

IMSHY, you might try posting that in your State forum as others might see that that are more familiar with exactly what this tax is!
Last edited by RR Joker; 10/01/13 08:18 PM.
_________________________
My opinion only. Not legal advice.

Say you'll haunt me - Stone Sour

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#1857470 - 10/01/13 08:45 PM Re: Sales tax Denovo Co
Kathleen O. Blanchard Offline

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Kathleen O. Blanchard
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Services are taxable in NM and are either itemized separately or combined in the price.

http://www.tax.newmexico.gov/Businesses/Gross-Receipts/Pages/Home.aspx

They would be charged in a cash transaction or a financed transaction. It is a tax on the "gross receipts"/sales paid to the title company, just like sales tax in a store.
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Kathleen O. Blanchard, CRCM "Kaybee"
HMDA/CRA Training/Consulting/Mapping
The HMDA Academy
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#1857501 - 10/01/13 10:17 PM Re: Sales tax Kathleen O. Blanchard
Denovo Co Offline
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Joined: Jan 2005
Posts: 375
NM
Thanks Kathleen. So regardless of how the title company discloses the fees (itemizes or not) the sales taxes are not included in the APR calculation?

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#1857555 - 10/02/13 01:46 PM Re: Sales tax Denovo Co
RR Joker Offline
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RR Joker
Joined: Nov 2002
Posts: 20,654
The Swamp
Since they are charged cash or financed, then they should be exempt from the ppfc and will not affect APR.
_________________________
My opinion only. Not legal advice.

Say you'll haunt me - Stone Sour

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#1857600 - 10/02/13 02:53 PM Re: Sales tax Denovo Co
Kathleen O. Blanchard Offline

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Kathleen O. Blanchard
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Posts: 21,293
Agreed. When charged in cash or financed transaction, the charge is not in the APR.
_________________________
Kathleen O. Blanchard, CRCM "Kaybee"
HMDA/CRA Training/Consulting/Mapping
The HMDA Academy
www.kaybeescomplianceinsights.com

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#1857652 - 10/02/13 03:51 PM Re: Sales tax Denovo Co
hgliii Offline
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Posts: 574
You learn something new every day in this business. After 38 yrs you'd think, you had seen everything. You can't relax for a minute.

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#1857658 - 10/02/13 03:56 PM Re: Sales tax Denovo Co
RR Joker Offline
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RR Joker
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Posts: 20,654
The Swamp
I'm just thankful not to live in Texas! laugh
_________________________
My opinion only. Not legal advice.

Say you'll haunt me - Stone Sour

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