Tax Type
BPOL Tax
Description
Real Estate Brokerage;Branch Office;Allocation
Topic
Local Power to Tax
Date Issued
06-05-1974
A real estate broker who contracts for the building of homes which he subsequently sells for his own account is subject to a city license tax applicable to builders. The gross receipts from the brokerage aspect of the business are excluded in determining the tax base.
A real estate broker who contracts for the building of homes which he subsequently sells for his own account is subject to a city license tax applicable to builders. The gross receipts from the brokerage aspect of the business are excluded in determining the tax base.
A city license tax on real estate brokers applies to an individual who maintains only a small branch office in the city so long as the tax is applied only to that part of the total income attributable to the branch office. In allocating income among several offices, the office where the contract for a sale is originally made should be determinative, rather than the location of business records.
Attorney General's Opinion