March 2008 Field Report -
Southeast Michigan
By: Brad Ward – Director of Public Policy & Legal Affairs
Start Spreadin’ the News…
Recently, you probably have noticed some communications in your Inbox regarding the Michigan Business Tax (MBT) relating to its treatment of commercial real estate. Allow me for the next two minutes to impress upon you just how important this issue is to not only our industry, but the State of Michigan.
In current form, the MBT will devalue existing commercial real estate assets, punish long-term industry investment, and discourage new commercial investment in Michigan. That is precisely the opposite of the intent of this new business tax… Lansing was seeking to rollout the red carpet for economic growth during these troubled times. Further down the road, we will see economic decline and continued pressure on government as their tax revenues decline unless the MBT is changed.
MAR has formed a Commercial REALTORS® MBT Workgroup that is leading our efforts to alter the MBT and make its treatment of real estate less burdensome. The Workgroup is developing a communication piece that explains our top policy concerns. MAR will have that available shortly (probably by the time some of you read this). Share this information with other members. Share it with clients or other business owners in your community that have significant real estate holdings. If you see a state legislator, tell them that the MBT needs to change its treatment of real estate or Michigan will continue its economic struggles.
We need to eliminate the 22% surcharge that was tacked on to this monster on December 1st. We need to reinstate the 10-year carry forward of Investment Tax Credits as they were previously treated under the Single Business Tax. We need these policy changes along with several others.
MAR members need to stand up together with a clear, timely message and communicate this to our elected officials in Lansing. Once legislation is drafted and introduced to address our policy concerns, expect a CALL TO ACTION. Just like last March with the Two-Penny Plan, we need to flood Lansing with our thoughts on this issue.
REALTORS® and Legislature Promoting Professionalism
The Agency Responsibility Act (ARA), aiming to clearly define those basic duties and services owed under an exclusive agency agreement to a client and provide for a uniform state wide disclosure form for when the consumer and broker choose to waive any of those services, has passed both the House and Senate. The passage of the ARA through the legislature is a huge accomplishment for REALTORS® - a success that has been years in the making. After meeting extensively with House and Senate legislators about the need to promote a stronger and safer real estate market for Michigan’s consumers, we are pleased to see the overwhelming support for this legislation. We are currently awaiting a signature from Governor Granholm.
Property Tax Reform Advancing
The Michigan Senate recently passed legislation that aims to stimulate the housing industry. The centerpiece of their plan provides an income tax credit to homebuyers equal to the amount of the ‘pop-up’ in their property taxes. This measure, coupled with the Michigan House passing a moratorium on the ‘pop-up’ tax a year ago, have created an environment for negotiations to take place between the leadership of both chambers. MAR is pleased to see Speaker Andy Dillon (D-Redford) and Senate Majority Leader Mike Bishop (R-Rochester) and an overwhelming number of legislators supportive of property tax reform. MAR will continue to work with Michigan’s legislators on short-term and sound long-term public policy that will prove positive for homeowners, homebuyers and industry professionals. For further updates on this or any other issue, see the MAR Web site at www.mirealtors.com.
RPAC Correctly Receiving Much Attention
There has already been lots of discussion about strategy for collecting RPAC contributions this year. To all of you that are stepping forward in this arena, thank you so much. Now it's time to get out there and ASK for the contributions! Remember that peer to peer solicitations are most effective. Don't rely on expensive and time consuming fundraisers or dues billing to reach goal - they can help you create awareness of RPAC. But to be most effective, make the ask personally.
If you ever need assistance or have questions about RPAC, let me know and I can assist you. Visit your RPAC Web site.
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March 2008
Field Report
• Field Report
Brad represents:
• Ann Arbor Area
• Dearborn
• Detroit
• CBOR
• Down River
• Grosse Pointe
• Lenawee County
• Livingston County
• MCAR
• Monroe County
• North Oakland County
• Western Wayne Oakland County
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