Legislation to protect commercial brokers against losing rightfully earned commissions has passed out of the Senate Committee on Economic Development and Regulatory Reform on a 6-1 vote. The bill now heads to the Senate floor for consideration.
Senator Randy Richardville (R-Frenchtown Twp.) has introduced Senate Bill 1313, which creates a statutory lien on commercial real property for the non-payment of commissions. Dubbed the "Commercial Broker Lien Act" the bill will enable brokers to establish liens on properties they sell. The liens would be available to licensed real estate brokers working with buyers or sellers as agents for the purchase, sale, or lease of commercial property.
Several brokers have reported difficulties in collecting commissions on deals that may have taken months or even years to complete. Increasingly, our commercial members are finding themselves falling victim to, what has been termed in the industry as a "commissionectomy", especially in leasing situations. More often than not, the cost of pursuing a lost commission far outweighs the commission itself.
Another purpose of this legislation is to prevent future lawsuits in regard to commissions. While commercial real estate brokers make up a portion of our membership, it is necessary to do everything possible to avoid costly litigation procedures with buyers or sellers who might be looking to take advantage of brokers not wanting to lose a sale. Avoiding litigation is a good thing for all REALTORS®, whether they sell commercial or residential properties. Several states already have commercial broker lien laws in place. The prospects for passage of the bill in the legislature are good, and the MAR continues to meet with legislators in the House and Senate making the case for why this legislation is needed. We will keep you posted on any further updates as this legislation moves through the legislative process.
6.10.08
The REALTORS® Political Action Committee (RPAC) is the best way a REALTOR® can protect his or her business. RPAC is the only grassroots and issues mobilizing force that exists to protect and promote the tradition of home ownership and real estate investment in Michigan.
To help REALTORS® better understand the value of their RPAC investment, MAR has created a video entitled “How RPAC Works For You”.
View video here
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6.4.08
As you know, the Agency Responsibility Act was recently signed into law. The passage of the legislation, now Public Act 90 and 91 of 2008, is a huge accomplishment for the MAR, and its success has been years in the making.
Effective July 1st, everyone will need to start using the new Agency Disclosure form. The new form contains a check box on limited services. If the box is checked, there will need to be an additional new limited service agreement form provided. Both new forms will be available for purchase within the next week, and we will notify you as soon as they are available.
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5.28.08
Key MAR-supported legislation is on the move in Lansing. First, the House Banking and Financial Services committee reported four pieces of legislation to combat the growing problem of appraisal fraud in Michigan. Given the recent statistics that Michigan ranks 5th in the nation in mortgage fraud, this legislation is aimed at addressing Michigan’s rising problem and increase penalties on those who are engaged in the activity. This package of bills, HB 4054, HB 6148, SB 343, and SB 356, would amend various acts to prohibit a mortgage broker or lender from coercing an appraiser in order to receive a predetermined appraisal, prohibit an appraiser from developing and communicating an appraisal that was the result of conditions set by a client in order to receive a predetermined appraisal value, and revises the criminal penalties and civil fines for violating the Mortgage Brokers, Lenders and Services Act or the Secondary Mortgage Loan Act. In addition, it establishes penalties under Article 26 (Real Estate Appraisers) of the Occupational Code.
Second, the House Commerce committee took testimony dealing with the regulation of second-hand and junk dealers. Copper theft has been on the rise at an alarming pace in recent years. Given the value copper fetches, buildings and homes have been ravaged, costing owners and landlords thousands of dollars. Copper theft has been devastating on the real estate community, especially in this time of rising foreclosures. Copper pipes and wire are being stripped from vacant homes and buildings on the market, leaving behind extensive damage and costly repairs. House bills 5694, 6003, and 6181 provide provisions and requirements of secondhand and junk dealers. Among the legislative provisions:
- Require a dealer to make a photocopy of the seller’s ID from whom the dealer receives scrap metal from.
- Creation of the Nonferrous Metal Regulatory Act, which would detail acceptable methods of payment, prescribe tagging and holding of items by dealers, and contain record-keeping requirements.
The bills are currently in House Commerce committee. Please visit our Advocacy page for further updates on these issues as well as other pertinent legislation affecting the real estate industry.
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5.14.08
Meetings scheduled across Michigan this month
Recently, the Senate Finance Committee formed a subcommittee to examine the effects of the new Michigan Business Tax (MBT) on businesses around the state. The Senate MBT Impact Assessment Subcommittee formed to analyze input from taxpayers, along with seeking suggestions for improvement of the MBT in order to bring recommendations for revision to the Senate Finance Committee in June. Comprised of Senator Mark Jansen (R-Gaines Twp) serving as Chair, along with Senator Jud Gilbert (R-Algonac) and Senator Mike Prusi (D-Ishpeming), the subcommittee aims to ensure that businesses are not suffering from any unintended consequences of the MBT. The subcommittee will work to make the new tax more fair and equitable.
The MBT Impact Assessment Subcommittee has already begun to hold hearings. In a recent hearing in Grand Rapids, local REALTORS® testified about the impact of the MBT on their businesses, especially in the commercial real estate sector. While Michigan attempts to recruit new business ventures, the treatment of commercial real estate under the MBT poses a significant disincentive to invest in our state. The negative effects of this tax on Michigan will ultimately lead to declining economic growth and less tax revenue.
Upcoming subcommittee hearings are as follows:
- Thursday, May 15th at 3:00 pm in Oakland County
- Friday, May 16th at 1:30 pm in Saginaw
- Monday May 19th at 11:00 am in Gaylord
If you would like to attend any of the upcoming subcommittee hearings, please contact the MAR office at 1-800-454-7842 for additional details. For more information on the MBT and its effect on the commercial industry, please click here.
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4.18.08
The Agency Responsibility Act was signed into law. The passage of the legislation, now Public Act 90 and 91 of 2008, is a huge accomplishment for the MAR, and its success has been years in the making.
The ARA legislation is a product of a MAR Public Policy Task Force assigned with the task to provide a framework for consumer protection to all individuals entering into an exclusive agency relationship. As a regulated industry, there is an expectation from consumers that laws have been established to protect them from brokers that would take advantage of them. The ARA model clearly defines those basic duties and services owed under an exclusive agency agreement and provides for a uniform state wide disclosure form when the consumer and broker choose to waive any of those services. The implementation date for a revised agency disclosure form as well as the check-off waiver is July of this year. The MAR has already started the process to update the forms.
Representative Tonya Schuitmaker (R-Lawton) and Representative Barb Farrah (D-Southgate) introduced the two-bill bipartisan package on behalf of the real estate community. The MAR Public Policy team met with legislative leaders on both sides of the aisle to stress the importance of passing the bills in order to promote homeownership while keeping industry standards high.
A white paper detailing the use of the new form and the changes in the disclosure of agency relationship form will made available to membership soon.
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4.16.08
As a follow up to last week’s e-news alert regarding the Passage of Public Act 96 which enables home sellers to retain 2 principal resident exemptions for property still on the market after the seller has moved elsewhere in the state, the “Conditional Rescission of Principal Residence Exemption Form #4640 form from the Department of Treasury is now available.
Click Here to Download Form.
Public Act 96 enables a person who has established a new principal residence to retain a Principal Residence Exemption (PRE) on property previously exempt as the owner’s principal residence that is not occupied and for sale by submitting a Conditional Rescission of Principal Residence Exemption Form #4640. The conditional rescission allows an owner to receive a PRE on his or her new property and on previously exempted property simultaneously if certain criteria are met:
- the property is not occupied,
- the property is for sale
- the property is not leased
- the property is not used for any business or commercial purpose
*The opportunity to apply and qualify for a conditional rescission begins for the 2008 tax year and is not retroactive to previous tax years.
To qualify for the conditional rescission in 2008, Form #4640 must be submitted to the assessor of the local unit of government where the property is located on or before May 1, 2008. The Board of Review has no authority with regard to a conditional rescission and cannot institute a conditional rescission on behalf of an owner if a deadline is missed or for previous tax years. An owner must annually submit Form #4640 on or before December 31 to verify to the assessor that the property for which the PRE is retained is not occupied, is for sale, is not leased, and is not used for any business or commercial purpose.
The Department of Treasury is in the process of developing a Frequently Asked Question sheet to address various issues related to the new conditional rescission. They hope to have those questions posted on the web some time next week. Form #4640, which includes an instruction page, can also be found at www.michigan.gov/taxes.
If you have any questions regarding conditional rescissions, please feel free to contact the PRE Unit at (517) 373-1950 or email Patrick Huber, Manager of the Property Tax Exemption Section, at huberp@michigan.gov.
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4.15.08
In current form, the new Michigan Business Tax (MBT) devastates the commercial real estate industry in Michigan. Many businesses have been unaware of the negative impact the MBT has on their business only to come to terms with it on their first quarterly tax filing, due this month.
While some industries benefit from the MBT, many, including the commercial industry, see dramatic tax increases. The MBT's 22% “surcharge” makes a difficult situation untenable and commercial real estate values will be hurt. Without prompt action, there is grave concern that our commercial real estate values will drop at a time when the real estate market as a whole is particularly vulnerable.
While Michigan attempts to recruit new business ventures, the treatment of commercial real estate under the MBT poses a significant disincentive to invest in our state. The negative effects of this tax on Michigan property will ultimately lead to declining economic growth and less tax revenue.
Please take the time to familiarize yourself with these issues, spread the word, and keep an eye out for upcoming MAR® Calls-to-Action to contact your Legislator. Also, please let the MAR® know of any commercial deals that have fallen through due to the burdensome tax at 1-800-454-7842.
Click here for more information.
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4.09.08
Yesterday, Governor Granholm signed 3 significant pieces of REALTOR® supported legislation. First, legislation enabling home sellers to retain 2 principal resident exemptions for property still on the market after the seller has moved elsewhere in the state. The signing of this legislation is a huge step in aiding struggling sellers who have had homes on the market for over a year and have lost their principal residence status on that property.
House Bill 4215, now Public Act 96 of 2008 sponsored by Representative Ed Gaffney (R-Grosse Pointe Farms) enacts that the seller can retain an additional exemption for up to three years on property previously exempt as the owner’s principal residence if the following circumstances are met:
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the property is not occupied,
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the property is for sale
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the property is not leased or available for lease
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the property is not used for any business or commercial purpose
The Michigan Association of REALTORS® (MAR) was active in pointing out to lawmakers that the struggling economy in Michigan has forced several home sellers to relocate to other areas of the state, in some instances continuing to market a home that they have not lived in for over a year. As a result, the home was no longer treated as a principle residence and the homeowner lost the principal residence exemption. Retention of an existing homestead credit for an unoccupied home that is currently for sale would offer relief to sellers who have had to relocate for whatever reason. The MAR is grateful to Representative Gaffney for being receptive and following through on this very important piece of property tax relief.
Secondly, the Agency Responsibility Act was signed into law. The passage of the legislation, now Public Act 90 and 91 of 2008, is a huge accomplishment for the MAR, and its success has been years in the making.
The ARA legislation is a product of a MAR Public Policy Task Force assigned with the task to provide a framework for consumer protection to all individuals entering into an exclusive agency relationship. As a regulated industry, there is an expectation from consumers that laws have been established to protect them from brokers that would take advantage of them. The ARA model clearly defines those basic duties and services owed under an exclusive agency agreement and provides for a uniform state wide disclosure form when the consumer and broker choose to waive any of those services. The implementation date for a revised agency disclosure form as well as the check-off waiver is July of this year. The MAR has already started the process to update the forms.
Representative Tonya Schuitmaker (R-Lawton) and Representative Barb Farrah (D-Southgate) introduced the two-bill bipartisan package on behalf of the real estate community. The MAR Public Policy team met with legislative leaders on both sides of the aisle to stress the importance of passing the bills in order to promote homeownership while keeping industry standards high.
These top industry priorities could not have been passed without your investment in RPAC. RPAC is the only grassroots and issues mobilizing force that exists to protect and promote the tradition of home ownership and real estate investment.
By investing in RPAC, you are able to support REALTOR®-friendly legislators who believe in our industry and believe in protecting private property rights, preserving the American dream of home ownership, fighting for tax reforms and reducing burdensome regulations on our business.
With RPAC, REALTORS® from across the state have the chance to come together and become active in the nation's most powerful and effective lobbying machine.
By becoming part of RPAC, you'll not only have the power to make a change in the way you do business, but you'll also become part of a statewide network—more than 27,000 members strong—that will link you with like-minded REALTORS® who share your concerns and issues. Thank you for your continued investment in RPAC!
Click here to contribute online
Disclaimer: Contributions are not deductible for Federal income tax purposes. RPAC contributions are voluntary and used for political purposes. You may refuse to contribute without reprisal or otherwise affecting your membership rights. Seventy percent of your contribution goes to your State Association to support state and local political candidates. Thirty percent is sent to National RPAC to support Federal candidates against your limits under 2 U.S.C. 441a.
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4.03.08
Attorney General Mike Cox issued an important opinion this week clarifying the proper application of an obscure exemption contained in the Michigan Transfer Tax Act. The opinion, arising out of a request from Representative Martin Griffin (D-Jackson), should afford certain home sellers immediate financial relief as Michigan’s real estate market continues its road to recovery.
Exemption “t”, as designated in the Michigan Transfer Tax Act, sets forth that a seller may seek an exemption from paying the state transfer tax if the following criteria are met:
- The property must have been occupied as a principle residence, classified as homestead property;
- The property’s State Equalized Value (“SEV”) for the calendar year in which the transfer is made must be less than or equal to the property’s SEV for the calendar year in which the transferor acquired the property; and
- The property cannot be transferred for consideration exceeding its true cash value for the year of the transfer.
With property values and corresponding SEV declining due to the struggling economy, home owners and real estate agents first took notice of the exemption’s possible applicability under the state transfer tax. However, absent an official interpretation, there was little awareness of its proper application.
The opinion from the Attorney General uses examples to show how the application would apply. One example illustrating application provides:
If the SEV of the principle residence when acquired in 2006 is $74,000.00 and the SEV when transferred in 2008 is $72,000.00 then criteria one and two above are satisfied. You can establish the true cash value by doubling the SEV at the time of transfer. In this case the true cash value is $144,000. If the sale price in 2008 is $140,000.00 then the sale does not exceed its true cash value. All three criteria are satisfied and the exemption would apply.
The Attorney General’s opinion provides immediate relief to home sellers already faced with the reality of declining value on their single greatest asset. The opinion also provides a uniform reading of the exemption that is necessary to provide consistent application among the various Registers of Deeds across the state as they are already receiving filings for the exemption.
Sellers should be cautioned that a request for the exemption that fails to meet all three criteria could bring a penalty equal to 20% of the tax assessed in addition to the tax due. Additionally, no similar exemption exists in the County Real Estate Transfer Tax Act.
Further questions should be directed to Brian Westrin, MAR Manager of Legal Affairs. He can be reached at 517.372.8890.
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3.27.08
Today, the Michigan Senate took action in passing legislation to stimulate the housing industry in Michigan. The Senate Economic Stimulus Plan gives a boost to the housing industry by providing property tax relief, while putting more money back into the homeowner’s pocket. It does so by offering a window for homebuyers to avoid the pop-up tax now and for the duration of their homeownership.
The Senate package (SB 1065, 790, 791, HB 4215, ) alleviates the issue of homeowners who continue to lose equity in their homes, while allowing potential homebuyers to move forward with the dream of homeownership without financial penalties. Senator Jud Gilbert (R-Algonac) and Senator Roger Kahn (R-Saginaw Twp) spoke on the Senate floor today and stressed the importance of a "pop up" tax moratorium in order to boost Michigan’s housing market while spurring the economy.
Details of the legislation include:
- 791 (Kahn substitute) offers immediate substantial relief for Michigan taxpayers who purchase a home within the next 33 months.
- SB 1065 (Cassis) – Increases the Homestead Property Tax Credit from $1200 to $1300 to those who qualify
- 790 (Pappageorge) – Increases the income thresholds of the Homestead Property Tax Credit by $10,000
- 4215 (Gaffney) Extends principal residence exemption to unsold homes
You may recall that a similar package was introduced in the House last year, which implemented an 18-month moratorium on the “pop up”. The Senate plan creates a 33-month window. It works by providing an income tax credit to reimburse homebuyers for any “pop up”. Those homeowners with no income tax liability would still receive a check from the state for that "pop up" amount. Jeff Young, 2008 President of the Michigan Association of REALTORS® said, “While the House and Senate plans differ in their mechanics, we are confident that both sides will come together and work to provide aid to homeowners and homebuyers. This will give Michigan’s economy a much needed shot in the arm. I’m extremely pleased that both House Speaker Dillon and Senate Majority Leader Bishop are working on much needed relief. It is obvious that both the House and Senate understand the important economic role the housing market plays. This is a historic time for homebuyers, and it’s a great time to buy.”
The "pop-up" tax is the common name for the uncapping of property taxes that occurs upon the transfer of property. The uncapping is a result of the 1994 Michigan Constitution amendment known as Proposal A. In short it is the difference between the current owner's taxable value and the new taxable amount a buyer will pay on the state equalized value of the home.
Under Proposal A, a property's taxable value is capped at an increase of the rate of inflation or 5%, whichever is less, thus keeping a homes value artificially low for tax purposes. When the property is transferred, the cap comes off and the new owner begins paying property taxes on the state equalized value of the home, not the previous owner's taxable value. This uncapping has become known as the "pop-up tax."
Because Michigan property values outpaced the rate of inflation since 1994, the state equalized value of many homes is significantly higher than their taxable value (about 30-35% higher statewide). Over the years this significant increase in tax liability has become a detriment to a person's buying power. The "pop-up" has the effect of prohibiting seniors from downsizing, pricing younger families out of older markets, forcing development into rural areas, and has taken away an incentive to purchase new homes.
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3.26.08
The Michigan legislature recently passed one of the MAR’s top industry priorities. The Agency Responsibility Act (ARA) passed through both the House and Senate chambers and is on it’s way to the Governor’s desk for her signature. The passage of the ARA bills is a huge accomplishment for the MAR, and its success has been years in the making.
The ARA legislation (House Bills 4416 and 4417) is a product of a MAR Public Policy Task Force assigned with the task to provide a framework for consumer protection to all individuals entering into an exclusive agency relationship. As a regulated industry, there is an expectation from consumers that laws have been established to protect them from brokers that would take advantage of them. The ARA model clearly define those basic duties and services owed under an exclusive agency agreement and provides for a uniform state wide disclosure form when the consumer and broker choose to waive any of those services. Once enacted into law, the implementation date for revised agency disclosure form as well as the check-off waiver is July of this year. The MAR has already started the process to update the forms.
Representative Tonya Schuitmaker (R-Lawton) and Representative Barb Farrah (D-Southgate) introduced the two-bill bipartisan package on behalf of the real estate community. The MAR Public Policy team met with legislative leaders on both sides of the aisle to stress the importance of passing the bills in order to promote homeownership while keeping industry standards high. The hope is that the Governor will sign the legislation in the coming weeks.
Please visit our Advocacy page for further updates on these issues as well as other pertinent legislation affecting the real estate industry.
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3.18.08
The Michigan legislature has moved two of our top 2008 MAR legislative priorities in recent weeks. Legislation that allows the Michigan State Housing Development Authority (MSHDA) to create a loan program to assist homeowners facing adjustments in their interest rate passed both chambers and is awaiting the Governor’s signature. The legislation would allow MSHDA to implement the “Save the Dream” refinancing program, which would be available through lenders and remain an option for individuals. The new program would aid those in danger of losing their homes by refinancing for more affordable payments. Every home spared from foreclosure not only helps the individual, but has a positive economic “domino effect” on communities, cities and the entire state. This legislation is truly a positive step in addressing the rising foreclosure rate in Michigan.
The Agency Responsibility Act has made its way through Senate committee, and is expected to be on track for a final floor vote this week. The bills would require real estate licensees entering into limited service relationships to provide a uniform statewide disclosure form. Once approved, the bills will be on their way to the Governor’s desk for signature. Once enacted into law, the implementation date for revised agency disclosure form as well as the check-off waiver is July of this year. The MAR has already started the process to update the forms.
The MAR Public Policy committee voted to fully support of both the ARA bills and MSHDA legislation, and the MAR Public Policy team has met with legislative leaders to stress the importance of passing these bills to promote homeownership while keeping industry standards high.
Please visit our Advocacy page for further updates on these issues as well as other pertinent legislation affecting the real estate industry.
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3.04.08
Two top industry priorities for the Michigan Association of REALTORS® are making headway in the legislature. First, the Agency Responsibility Act (ARA) legislation passed the House last week, and makes its way over to the Senate Committee on Economic Development and Regulatory Reform. The legislation, House Bills 4416 and 4417, are a product of a MAR Public Policy task force assigned to provide a framework for consumer protection to all individuals entering into an exclusive agency relationship. As a regulated industry, there is an expectation from consumers that laws have been established to protect them from brokers that would take advantage of them. The ARA model, introduced by Representative Tonya Schuitmaker (R-Lawton) and Representative Barb Farrah (D-Southgate), aims to clearly define those basic duties and services owed under an exclusive agency agreement and provide for a uniform statewide disclosure form when the consumer and broker choose to waive any of those services. A committee hearing on the ARA bills is expected in the near future.
Second, the Senate passed legislation to strengthen the regulation of the mortgage loan industry in Michigan. This bipartisan, bicameral legislative package (Senate Bills 826-833, House Bills 5287-5291) provides licensing and education requirements, along with mandatory background checks for mortgage loan officers in Michigan. It also allows the Office of Financial and Insurance Services (OFIS) to keep better track of individuals within the industry as they may move around. Given increased real estate fraud and foreclosures in this state, these bills are a big step forward in addressing the root of these problems. This legislative package represents a compromise from many facets of the real estate community, including banks, credit unions and mortgage brokers. The passage of the loan officer licensing legislation is a positive step in halting mortgage fraud, while keeping industry standards high. The bills now move on to the Governor’s desk for her signature.
The MAR will continue to closely monitor both the ARA legislation and the loan officer licensing legislation and meet with legislative leaders to stress the importance of enacting both packages of bills in order to protect both homebuyers and the real estate community.
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2.26.08
Copper theft has been on the rise at an alarming pace in recent years. Given the value copper fetches, buildings and homes have been ravaged, costing owners and landlords thousands of dollars. Copper theft has been devastating on the real estate community, especially in this time of rising foreclosures. Copper pipes and wire are being stripped from vacant homes and buildings on the market, leaving behind extensive damage and costly repairs.
Recently, legislation has been introduced in the Senate taking aim at regulating and licensing second hand dealers who buy copper. Senate Bills 1113, 888, 720, and 1089 contain provisions and requirements of secondhand and junk dealers. Among the legislative provisions are:
- Prohibiting a secondhand or junk dealer license from being issued to someone who did not have an actual business location.
- Requiring a dealer's records to include the weight, amount, and number of articles purchased or exchanged.
- Requiring a dealer to provide his or her records to a law enforcement agency within 24 hours of a request.
- Prescribing a criminal penalty for buying or selling stolen construction materials.
- Requiring a dealer to make a copy of the driver license or State identification card of a person from whom the dealer purchased or received items, and include the copy in the dealer's weekly report to the police.
Currently, these bills are in the Senate Economic Development and Regulatory Reform committee. The Senate sponsors would like our official support of these bills. The MAR Public Policy committee is scheduled to meet early next month to analyze the legislation.
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2.19.08
Last week, the state House passed legislation to strengthen the regulation of the mortgage loan industry in Michigan. This bipartisan, bicameral legislative package provides licensing and education requirements, along with mandatory background checks for mortgage loan officers in Michigan. It also allows the Office of Financial and Insurance Services (OFIS) to keep better track of individuals within the industry as they may move around. Given increased real estate fraud and foreclosures in this state, the passage of these bills is a big step forward in addressing the root of these problems.
This legislative package represents a compromise from many facets of the real estate community, including banks, credit unions and mortgage brokers. There are a handful of remaining bills that now move on to the Senate, where it is expected that they will pass quickly. The MAR Public Policy staff continues to meet with Senate leadership in stressing the importance of the passage of these bills as a positive step in halting mortgage fraud, while keeping industry standards high.
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2.14.08
The Agency Responsibility Act (ARA) has remained a top priority of the MAR. The legislation is a product of a MAR Public Policy task force assigned with the task to provide a framework for consumer protection to all individuals entering into an exclusive agency relationship. As a regulated industry, there is an expectation from consumers that laws have been established to protect them from brokers that would take advantage of them. The ARA model aims to clearly define those basic duties and services owed under an exclusive agency agreement and provide for a uniform state wide disclosure form when the consumer and broker choose to waive any of those services.
Representative Tonya Schuitmaker (R-Lawton) and Representative Barb Farrah (D-Southgate) introduced the two-bill ARA package, and the bipartisan effort and is making headway. House Bills 4416 and 4417 are expected to pass out of the House this week and be sent off to the Senate. The MAR will continue to closely monitor the bills and meet with legislators to stress the importance of the bills in order to protect both homebuyers and the real estate community.
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2.04.08
The Michigan Association of REALTORS® Federal Political Coordinators (FPC’s) recently attended a training session held in Washington D.C. The MAR FPC's serve as liaisons between legislators on the federal level and REALTOR® members in Michigan. The focus of the FPC training is to provide tools to strengthen relationships with national leaders in order to push for REALTOR® friendly legislation. The training gives FPC’s from around the nation a chance to meet one on one with federal elected officials to discuss policies and other concerns affecting REALTORS®. Top industry priorities on the national level include; access to affordable healthcare, protecting the mortgage interest deduction, and keeping banks out of the real estate arena. The FPC’s stress the importance of crafting sound legislation to keep the REALTOR® agenda moving forward.
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1.09.08
The Michigan Department of Treasury has announced an updated Web site dedicated to the new Michigan Business Tax (MBT). A new version of the Michigan Business Tax (MBT) Estimator is now available that takes into account the new surcharge that was signed into law in exchange for the elimination of the service tax. This program allows you to estimate your tax liability under the new MBT, which replaced the previous tax plan, the Single Business Tax (SBT). The Estimator is intended to give an approximation and comparison of your tax liability. The new Web site also contains an overview of the new MBT, along with details on various elements such as Nexus, Unitary Filing, and Apportionment. Recent MBT presentations, including two Webinars, can be downloaded from the site as well.
The link to the website is below:
www.michigan.gov/mbt
Please keep us informed on any unforeseen consequences that the new MBT may impose on your business by utilizing the estimator. If you have any questions, comments or concerns, please contact us at 800.454.7842 or mar@mirealtors.com.
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1.02.08
Now that 2008 has rolled in, many legislative issues affecting the REALTOR® community still linger from the end of the 2007 legislative year. Budget negotiations throughout much of the latter part of 2007 held industry-specific legislation in various committees and workgroups. However, MAR continues to meet with leadership on both sides of the aisle to address the concerns and priorities of the real estate industry. The MAR top legislative priorities for 2008 include:
- Michigan Business Tax (MBT) surcharge clean up/revision bills
- Commercial Broker Lien legislation
- Passage of the Agency Responsibility Act
- Statewide Septic Legislation
- Mortgage Fraud Legislation
A new year also brings changes within our association. Along with local boards and associations installing new presidents, officers and committee members, MAR will have new faces in leadership in 2008. MAR is fortunate to have a great group of individuals leading the charge. Jeff Young will serve as 2008 MAR President. Jeff is a member of the West Michigan Lakeshore Association of REALTORS®, and has served on numerous committees on the local, state and national levels. Nanci J. Rands, a member of the Metropolitan Consolidated Association of REALTORS® (MCAR), will take the helm as the new 2008 MAR RPAC Trustee Committee Chair. Teri Spiro, also a member of MCAR, will lead the 2008 MAR Public Policy Committee. Lastly, Matt Davis, a member of the Battle Creek Area Association of REALTORS®, is the REALTOR® Political Involvement Coordinator (RPIC). He will oversee the Federal Political Coordinators (FPC’s), who serve as liaisons between the state association and those who hold a federal office in Washington D.C. The new MAR leadership aims to promote good public policy and industry standards across Michigan, and will be looked to for guidance on many concerns at the forefront of today’s real estate industry. View the new 2008 MAR Officers and Board of Directors list.
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12.01.07
(12.01.07)LANSING – Just before 5pm on Saturday, December 1st, the Michigan House of Representatives struck the final blow to the 6% service tax. Negotiations between the legislature and the Governor stretched on into the early morning hours of December 1st on House Bill 5408, the repeal of the job-killing service tax and the replacement of the revenue through a surcharge to the new Michigan Business Tax (MBT).
The Michigan Association of REALTORS® again kept vigil through the night in an effort to ensure any outcome spread the replacement revenue more fairly over a wide range of businesses. The first incarnation of the surcharge heavily favored manufacturers over Michigan’s real estate brokerages and other small businesses. Although there was progress made during the late night negotiations toward a more equitable distribution, Bill Martin, C.E.O. of MAR summed up the final bill as “A bad tax that replaces another bad tax.”
The MAR will continue to work with leadership in both chambers of the legislature on clean-up and clarification legislation to ensure that the MBT does not unduly burden real estate brokerages in this already troubled market.
Stay tuned to www.mirealtors.com in the coming weeks for more details.
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