In a major win for REALTORS®, the city of Chicago has agreed to exempt MLS information from falling under a proposed tax on data.
The so-called “Cloud Tax” went into effect Jan. 1, 2016 and applies to cloud software and Web hosting. It was of particular concern for REALTORS® who often upload and maintain listing data online.
The tax was proposed to be nine percent, a number that alarmed REALTORS® and others who manage online data.
Negotiations by a coalition of groups including the Chicago Association of REALTORS®, Midwest Real Estate Data LLC and other local REALTOR® associations yielded a letter from the city providing the exemption, according to a release form CAR.
Bernardoni said the exemption for REALTOR® MLS data could provide a model for other associations which might find themselves facing similar taxation schemes.
“This is a major win for our industry, for REALTORS® and their proprietary data,” said Ginger Downs, CAR CEO. “And it is indicative of the importance of coordination and collaboration between MRED and REALTOR® Associations.”