Claim for Real Estate Expenses

A Federal employee claimed reimbursement for real estate expenses incurred from the sale of his residence incident to his transfer from South Dakota to New Mexico. The employee paid a 7 percent brokerage fee on the sale of the residence as well as a 5.5 percent sales tax on the fee as required by South Dakota law. The agency allowed the employee's claim for reimbursement for the brokerage fee, but not for the sales tax. Travel regulations provide for the reimbursement of a broker's fee paid by an employee in selling his residence, but not in excess of the rates generally charged for such services in the locality of the old official station. Since it is customary for a real estate broker in South Dakota to charge the seller the sales tax on the broker's commission, the employee was entitled to reimbursement for the amount of the sales tax he paid on the brokerage fee. Accordingly, the claim may be certified for payment.