 MiCREA's advocacy for private property rights in Michigan
Loan Officer Licensing – SB 826-833 and HB 5287-5291 – SUPPORT
With support of the mortgage industry this package of bills is poised to find their way to the Governors desk for signature. The bills would establish a licensing scheme, education requirements, and background checks for loan officer in Michigan. This package will also allow OFIS to better track individuals within the industry as they move from shop to shop. This is a bipartisan package that is being championed as a large step towards reducing mortgage fraud. There is also an added urgency to the package given the current state of foreclosures in MI.
Status: Governor Granholm signed these bills into law on April 15th. It should be up and running by the end of the year.
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Senate Stimulus Package – SB 1065, 790, 791, HB 4215 – SUPPORT
This is the Senates “answer” to Speaker Dillon’s pop-up moratorium. It is intended to provide short term relief from the pop-up while increasing the homestead tax credit. This plan attempts to address concerns over constitutionality, cuts to local government, and the exacerbating horizontal equity problem associated with the moratorium. The Senate proposal creates a 33 month window in which a purchase of a principal residence will earn the buyer a refundable income tax credit, in the amount of the pop-up, for the duration that they live in the home. The Senate plan further increases the income threshold for the existing Homestead Tax Credit to $83,650 and increase the credit amount from $1200 to $1300. Additionally the Senate plan does not include the House’s transfer tax increase proposal.
Status: The Senate passed these bills the day before they left for Spring break. There will be a workgroup of House and Senate members that will meet to work on a compromise between the two proposals. The Senate bills received wide bipartisan support in their passage.
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MBT Workgroup Update
A workgroup formed to address and communicate the disastrous effects of the new MBT on the value of commercial real estate. The workgroup has established 5 key points to changing the MBT to bring Michigan’s taxation of commercial real estate in line with our neighboring states.
- Elimination of 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 depreciation
Status: The committee has approved the creation of a glossy one sheet to assist in the communications efforts. This will be distributed to all commercial members to use in meeting with their clients. Additionally, 4 pieces of legislation will be introduced by Representative Sak to address everything but the surcharge elimination. Sen. Jansen is the sponsor of the surcharge elimination legislation.
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