Real Estate Commission Taxes

The real estate listing agreement signed by a transferred employee incident to the sale of his residence at his old duty station required payment of 6 percent commission on the selling price plus the applicable gross receipts tax on the commission. The employee may be reimbursed for the tax paid to the broker if it is customary in the area for a tax to be passed through to the seller. The tax should be viewed as part of the cost of services rendered by the real estate broker, since it is neither levied on property nor included in the purchase price.