July 2006 Field Report - West Michigan
By: Kyle Olson – West Michigan Field Director
In the majority of election races coming up, both local associations and the MAR have weighed in on which candidate would best represent REALTOR® views in Lansing in the next legislative session.
Interview committees asked candidates many questions ranging from their views on property rights, taxation, Proposal A, the K-16 Funding Mandate, and eminent domain.
Another issue that has received a lot of attention in Lansing and virtually every candidate agreed on its elimination: the Single Business Tax.
The vast majority of candidates see the SBT as burdensome and outdated. Where they tend to split is 1. whether it should be replaced and 2. if so, with what? There have been basically 3 proposals floated in Lansing with one getting the most attention: a so-called “fair tax.” The premise behind a “fair tax” is eliminating the SBT, personal property taxes, and income taxes and replaces them with an increased sales tax. The thought is it will be a consumption tax and the more you spend, the more you pay.
The gray area has been, and continues to be, real estate. Should a home buyer pay 8% or 9% in sales tax at the time they buy? (We will leave the question of whether a home buyer even can afford such a tax for another time.) We see how such a proposal can have serious consequences on the housing sector of the economy. Just think of telling a buyer they have to come up with $12,000 for sales tax on a $150,000 home.
One suggestion is to have the tax only on a newly-built home. It is hard to imagine the Home Builders would go for such a proposal. And why should those people buying new homes be penalized while purchasers of existing home not?
Concrete proposals are few. The House Tax Policy Committee has been researching ideas with the hopes of tackling the issue after the election. While they are honestly looking to create a tax that is fair and equitable, MAR will remain vigilant to see that any unintended consequences are not realized with regards to real estate, home ownership, and home sales in Michigan.
It is important to ask candidates running for office what their views are concerning these issues. After all, they may be the ones voting on proposals that can have a serious impact on your business and income.
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Register to Vote
The Primary Election in Michigan in scheduled for August 8 and the General Election is scheduled for November 7. While not error-free, a Web site is available, where voters can enter their home address to see what candidates are running in their area. It is: http://www.vgt2004.org/a-mi-gannett/.
Voter registration forms are available from your city or township clerk, your county clerk, or the secretary of state’s office. If you do not already do so, you may want to include a couple in your documents when you close with a client.
REALTORS® take the political process very seriously and a great way to show that is to help new home buyers to register to vote.
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MAR Members Join BREBS
Congratulations to Sheri Fricke and James Sellman! They have both been appointed to serve on the Board of Real Estate Brokers and Salespersons (BREBS) by Gov. Jennifer Granholm for a term starting July 1, 2006, and expiring June 30, 2010. This board provides for the licensing and regulation of real estate professionals, including anyone who acts as a real estate appraiser, real estate mortgage broker, building job broker, business chance broker, and/or engages in the sale of real estate as a principal vocation. Should you come across either of these fine REALTORS®, please congratulate them on this honor.
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