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As 2005 draws to a close, the MAR Public Policy Committee is proud to reflect on a number of legislative successes while also pointing to some of the challenges for the future.

Going all the way back to January, expectations were high for a revamped budgeting process spawned from the Price of Government project (see page 24 for story).  Due to term limits, the 93rd Legislature convened with a fresh batch of legislators; no one could predict the outcome that would follow, but this much was certain: MAR was going to aggressively pursue its policy agenda in 2005.  Due to the nature of Michigan’s budget and economic woes, Governor Granholm and the legislature faced the prospect of revamping the state’s tax code, or more specifically, the Single Business Tax.  For the committee, a substantial effort was made to shift through the tricky details and support a proposal that would not harm REALTORS® or property owners. 

Through the recommendation of a task force, the committee adopted the position that the governor’s plan to offset tax relief for manufacturing with tax increases on finance, insurance, and real estate industries would be opposed. By taking this position, MAR successfully communicated to the legislature that picking “winners and losers” when it comes to taxes is unacceptable. As of this publishing date, the house has passed a tax reform plan offering broad tax relief for all businesses. 

Other tax relief measures supported by MAR include Public Acts 23, 24, and 114 of 2005, which provided needed property tax relief for disabled and elderly homeowners living on fixed incomes and fixed some tax errors due to incorrect uncapping.  The committee also continued its fight against any and all possible sales taxes on service proposals and opposed the mandatory increase in education funding ballot proposal. 

Increased government regulations also required the committee’sattention this year. MAR continues to oppose statewide government mandated point-of-sale inspections of septic systems.  Through the Non-point Water Quality Task Force, MAR has advocated educating homeowners about proper care for septic systems while simultaneously making the case that the private sector can adequately handle proper maintenance without government intervention. 

Other important legislative victories include passage of the allergens legislation, SB 370, and the forward progress of the Agency Responsibility Act, HB 4849 and 4850. Both legislative efforts are important steps in the committee’s efforts to increase professionalism in the real estate industry while providing necessary consumer protections during transactions.  (For more information, please see this month’s “Capitol Report.”) 

Finally, this year made it clear that there are still challenges facing the real estate industry in 2006 and beyond.  A constitutional amendment supported by MAR has been proposed to provide protections for private property against eminent domain. MAR will continue to support the concepts outlined in The Price of Government even if next year’s budget outlook is stabilized with an increase in state revenues. What will the long-term tax reform package entail, and how will REALTORS® and property owners be impacted? These issues and others will be watched carefully, and MAR will work diligently to protect you and other members from unnecessary government regulation and taxation. 

With the legislative success in 2005, Michigan REALTOR® caught up with MAR Public Policy Committee Chair Matt Davis, Battle Creek Association of REALTORS®. Davis has been a long time advocate for MAR’s public policy agenda, RPAC supporter, and recently received the 2005 REALTOR® Active in Politics Award.

How would you describe your year as chair of the MAR Public Policy Committee?

“Wow, what a year for the Public Policy Committee! Being chair of this committee is akin to trying to organize chaos. And very excellent chaos it is. We have gotten involved with some big issues this year, like the Agency Responsibility Act and the Single Business Tax reform legislation.”

Part of that “excellent chaos” is a group of 26 members, including yourself, who really contribute significant amounts of time studying and commenting on issues.  Talk about the people you’ve worked with this year.

“The public policy committee is home to some of the brightest and best decision-makers in our association; they prove it month in and month out, year after year.  It is a group of tightly wound, deeply intelligent, type AAA people who, in many cases, know more and issues and about government than most legislators in Lansing.  Although letting everyone have their say at a meeting is challenging, this is one of the best groups of people I have ever had the pleasure of being associated with.”

A lot of people may not know exactly how issues come before your committee or how theb decision-making process unfolds.  Can you shed some light?

“We pore over several pieces of legislation based on either the recommendation of members or legislators who have asked for our opinion or support – and we really have to do our homework!  The group works extremely hard preparing for meetings, discusses issues almost until they are pounded out into little bit, then comes together and makes excellent decisions—decisions no one takes lightly, but in effect, decisions that shape how we view legislation that may control how the course of our business is conducted each and every day.”

Recommendations from legislators? How does that work?

“From time to time we invite legislators, lobbyists, or representatives from other interest groups who are asking us to support their policies or legislation.  We basically give them the floor to make their case.”

With these people coming to MAR, do you think that reflects more on the effectiveness of your committee or just the nature of politics and government?

“Actually, I think it’s both. These people come to us because, as an association, a large group of like-minded people, we have a big hammer, and the Public Policy Committee will, from time to time, recommend MAR use that hammer to stop legislation that will hurt our business or damage private property rights, or to push back opposition to legislation that will help us do our jobs better.”

On behalf of MAR and its nearly 34,000 members, thank you and the committee for your hard work this year.

“Thank you for the opportunity.”