[Remember_Salamis]

New home builders that build houses on expensive land will benefit more than homebuilders that build homes on sh*tty land because you don't pay taxes on the land. The actual "House" on an expensive piece of property is a lower percentage of the selling price than one built on cheap land.

In my example, it costs $50,000 to actually build the house, whatever piece of land it is on. One lot costs $200,000, while the other coasts $50,000. Therefore, on the price land, only 20% of the selling price would be taxable, whereas 50% of the selling price would be taxable on the cheaper land. Make sense?

[lewislynn]

Sorry, but you're misinformed if you think land purchases aren't taxed.

`(6) Intangible property-

`(A) IN GENERAL- The term `intangible property' includes copyrights, trademarks, patents, goodwill, financial instruments, securities, commercial paper, debts, notes and bonds, and other property deemed intangible at common law. The Secretary shall, by regulation resolve differences among the provisions of common law of the several States.

`(B) CERTAIN TYPES OF PROPERTY- Such term does not include tangible personal property (or rents or leaseholds of any term thereon), real property (or rents or leaseholds of any term thereon) and computer software.

(14) Taxable property or service-

`(A) GENERAL RULE- The term `taxable property or service' means--

`(i) any property (including leaseholds of any term or rents with respect to such property) but excluding--

`(I) intangible property, and

`(II) used property, and

`(ii) any service (including any financial intermediation services as determined by section 801.

You people really need to read and understand your product before trying to sell it.