Michigan Association of REALTORS®

Recently, a very expansive proposal to amend the Michigan Constitution has surfaced known as the Reform Michigan Government Now ballot initiative, or RMGN. Over the last couple weeks, it has been the talk of Lansing. The proposal itself does many things that are popular with voters given their sentiment towards government right now, such as cutting the number of legislators in the State House and State Senate, reducing and limiting the number of departments in the Executive Branch, and lowering the pay of top governmental officials.

However, while RMGN might sound appealing from its name, use caution in warming up to it. MAR believes that this proposal, which is nothing more than a blatant power grab by a special interest, would be dangerous for our industry and the citizens of this state. Currently, it is being fought by a large number of groups from both traditional Democrat and Republican leanings that realize the disastrous effects it would have on Michigan citizens. Given the complexity of the proposal, expect many legal challenges in the coming months from multiple angles to keep the proposal from ever reaching the ballot. More details to come.

The MAR has been working diligently with our state elected officials and key policy analysts to ensure that they recognize the immediate necessity of repealing the 22% surcharge on gross receipts under the new MBT. A workgroup was formed and have been meeting to address and communicate to the legislature the disastrous effects of the new MBT on commercial real estate and the necessity for Michigan to remain competitive with neighboring states.

The workgroup has set 5 key points for change to the MBT to bring Michigan’s taxation of commercial real estate in line with our neighboring states:

Eliminate the 22% surcharge
Reinstating the 10 year ITC carryforward
Allowing real estate for sale to be treated as inventory
Exclude common area maintenance (CAM) from gross receipts
Allow a fresh start for appreciation

In May, the Senate held subcommittee hearings to gather testimony from Michigan business owners. MAR brokers were out in full force to reaffirm to the Senate that the 22% surcharge will have a detrimental effect on their businesses. These concerns did not go unheard as the report for the MBT Impact Assessment subcommittee listed the 22% surcharge as one of the key concerns with the MBT.

Most recently, the legislature has taken action by crafting bill drafts that have bipartisan, bicameral support in order to resolve many of the roadblocks that the MBT has created. This includes drafts to clarify that taxes on gross receipts should NOT include commissions that pass through the broker. We will keep you posted as the legislature moves forward on this and other legislation having an effect on the MBT.

Thanks to the help of the local associations, the RPAC Trustees were able to finalize the primary endorsements of many candidates running for state house. Click here for a complete list of MAR endorsed state house candidates. For those associations who still have candidates to interview for the General Election, please note that the deadline to submit your recommendations is before September 3rd. The RPAC Trustees will be meeting on September 3rd to finalize all recommendations made by the local associations. The link below contains an election overview, along with the 2008 Candidate Interview Manual to download. Please contact me if you need any assistance in setting up the interviews. Click here for more information.

The time is now to nominate the annual recipient of the REALTOR® Active in Politics Award! Help us recognize a REALTOR® that gives of their time and effort in promoting the real estate industry and private property rights. Each local association can nominate one member. The RAP Selection Committee will determine the winner from the nominations submitted by the local associations. Nominees should be members that promote participation in politics within our membership and/or work to advance MAR’s agenda with elected officials. Candidates are judged based on active support and leadership of membership through political involvement at the state and local association levels, personal involvement with influencing public policy, and promotion and contribution to RPAC. NAR involvement is also taken into consideration. Click here to submit a nomination form on the MAR website. The deadline for MAR to receive all local association nominations is July 30.

The Livingston County Association of REALTORS® is pleased to announce the addition of Meghan Webber as the Executive Vice President of LCAR.

Meghan will begin her position on Monday, July 28. She has a background in association management and membership services. Most recently Meghan was the Director of Membership Services of Michigan Podiatric Medical Association, a statewide trade association where she was responsible for cultivating membership and related services, providing continuing education, managing marketing and public relations/communications, conducting strategic planning, and ensuring budgetary compliance.