During the first day of the 95
th legislature, it was clear that tax reform is a top priority in 2009. During his opening address,
House Speaker Andy Dillon (D-Redford) pledged to work on ways to make government more efficient, while aiding the citizens of Michigan during these tough economic times. He stated that Michigan’s tax system is too complicated and stifles economic growth. In addition, he acknowledged that property taxes are too high and they continue to rise while home values drop. He stressed the importance of crafting job-creating, comprehensive tax reform measures to put before Michigan voters in the form of a ballot proposal.
In addition to the tax reform proposals Speaker Dillon outlined,
Representative Brian Calley (R-Portland) introduced a resolution calling for a constitutional amendment to prohibit property tax increases for homes with market values that decline or remain unchanged. Representative Calley stated that if the Legislature doesn’t agree to put House Joint Resolution B before Michigan voters, he would lead a petition drive (and collect the necessary 300,000 voter signatures) to place it on a statewide ballot in November.
The MAR has continued to meet with leadership and Representative Calley regarding all tax reform proposals. The MAR supports sound public policy to curb high property taxes and the staggering foreclosure rate in this state. With similar bills regarding tax relief likely introduced this year in both chambers, it is important to guard against any hastily created approaches that could have adverse consequences for Michigan. Given the severity of the problem, the MAR will continue to advocate for the best public policy to help Michigan citizens.
In further efforts to provide tax relief through reforms, the first Senate bill introduced in 2009 calls for the elimination of the 22% Michigan Business Tax (MBT) surcharge.
Senator Mark Jansen (R-Gaines Twp) introduced
Senate Bill 1, which calls for a complete phase out of the surcharge by 2010. The Senate Majority Caucus has stated that the elimination of the burdensome surcharge is their top priority. The bill would phase out the 22% tax over two years, first dropping to 11% this year. Last year, Senator Jansen was charged with heading up a task force that traveled around Michigan taking testimony from business owners that have been negatively impacted by the surcharge. The MAR has strongly opposed the burdensome surcharge since its inception, as it places the commercial real estate sector on an unlevel playing field with other states.
The MAR continues to work with legislative leaders on a solution to the problematic surcharge. It is our hope, along with the business community, that a compromise will be made between both chambers that will not only retain the businesses Michigan currently has, but attract future endeavors to the state as well.
Drumming up business on the social network
Facebook is becoming one of the smartest things a real estate practitioner can do in this tough market, some say.
"Real estate practitioners are probably the most natural networkers," says Pablo Viola, who created the 12,700 member "Real Estate on Facebook" group. "They understood right away what it means to belong to a community and the benefits of networking through this channel. … [They] translate their offline networking online very easily."
Facebook is a great way to connect with old friends and along the way, many practitioners are learning that their ability to navigate today’s real estate market is a welcome asset on the network.
For instance, Tracy Wortmann, an associate with Coldwell Banker Heritage in Belvidere, N.J., helped an old high-school buddy living cross-country find a practitioner in his area (standing ready to collect a referral fee). When another classmate posted that she planned to sell her house, Wortmann grabbed the listing.
Is this worse than handing out business cards at a friends and family gathering? Wortmann says she's careful not to be too pushy. She doesn’t post photos of listings nor solicit her network of 176 Facebook friends.
"Online I don't think people think I'm being too aggressive," Wortmann says. "In this world we are so very busy, and networking online, people can get in touch with me any time of day, so I'm not bothering anyone."
Source: REALTOR® Magazine Online, Newsweek, Daniel McGinn (01/07/09)
With the help of McClelland & Anderson, we are taking the most commonly asked questions from our legal hotline and putting them in e-news. We will be featuring a different question each issue.
With sales of existing houses in the Midwest down 6 percent in October (and remain 9.1 percent below figures from October '07) and the median Midwestern home price down 6.7 percent from a year ago (according to the National Association of REALTORS®), it makes sense for homeowners to think at least twice about investing in a renovation.
What projects make sense, given the state of economic affairs? What improvements will allow folks to live better
now and make the house more saleable
later, and offer a handsome return on investment?
We posed those questions to four Chicago area home builders and remodeling contractors, as well as a senior researcher at the National Association of Home Builders and the editorial director of Remodeling magazine.
The short story: Small projects are "in." Big additions, "out." Projects that improve curb appeal are good. So is anything to do with energy efficiency. And the perennial favorites kitchen and bath remodels.
Read the Full Story
Source:
Chicago Tribune
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