© The York Dispatch 2010

Area real estate agents and home builders are poised against Gov. Ed Rendell's proposal to lower the state sales tax rate from 6 percent to 4 percent and expand it to goods and services that are currently exempt.

While many businesses could benefit from a 2 percent drop in tax, others will have to implement a new 4 percent tax on a good or service.

Among the services that would be taxed are attorney fees, appraisal and title fees, accountant fees, home inspections, construction, architectural services and mortgage origination.

York County Builders Association President Steve Kohr said the association is opposed to the measure, though the legislation isn't clear on which construction-related services would be taxed. While the details are still being considered, he said any new costs to would-be homebuyers aren't welcome.

The bum economy left builders with a surplus of new home inventory that isn't moving. Adding a tax on some of the services that are currently exempt could give people one less reason to buy a home, he said. "This could slow (the housing market) even more," Kohr said.

"(Home buyers) will have less money toward the purchase of a home." Costly addition: Area Realtor Patricia Carey agreed that taxes on services would be a costly addition to the home-buying process at a time when the market is struggling to recover.

"The fees affect what the consumer can afford," she said. "Four percent on all of those fees ... that's a lot of money.