Members of the Pennsylvania Association of Realtors (PAR) rallied at the state Capitol Wednesday to voice their opposition to Gov. Ed Rendell’s proposal to tax professional real estate services.

Rendell has been on a push for several weeks now to drum up support for his new tax plan that would place a levy on goods and services that are currently exempt from the state sales tax, including services provided in the course of real estate transactions. The governor’s proposal has met some resistance from lawmakers on both sides of the party lines, and according to PAR, it’s not looked on too favorably by constituents either.

At the gathering in Harrisburg, Don Roth, PAR president, unveiled a survey revealing that 70 percent of Pennsylvanians polled oppose the proposed tax that would drive up costs for consumers in the home buying and selling process.

“Consumers in Pennsylvania will have to spend thousands of dollars more to purchase a home if Gov. Rendell’s plan is enacted,” said Roth. “Housing will become less affordable and beyond the reach of many Pennsylvanians.”

According to Roth, the proposed tax would affect every profession and service connected to a real estate transaction. In addition to paying a 4 percent tax on real estate agent/broker services, consumers will have to pay a 4 percent tax on appraisals, attorney services, credit reports, mortgage originations, home inspections, surveys, title searches, construction, architectural services, and site preparation.

“Taxing professional services involved in the home buying and selling process will reduce demand for housing, something Pennsylvania cannot afford,” said Roth. “Decreasing the demand for housing will only drag out the amount of time it takes for the state’s economy to recover.”

Roth added, “Homebuyers and sellers are already taxed via Pennsylvania’s Realty Transfer Tax (RTT), which is among the highest in the nation.”