Legislative Update for Arizona REALTORS®
Being a member of an exclusive club has its benefits. As a member of the Arizona Association of REALTORS® (AAR), one key benefit is the protection your business receives at the local, state and federal level.
Your day-to-day business keeps you busy enough as it is, now imagine if on top of your daily tasks, you also had to fight off over regulation from the government and other industries chipping away at your right to earn a living.
As a REALTOR® member, you need not fear. AAR, along with the National Association of REALTORS® (NAR), fights daily on your behalf to work with governmental agencies and the legislature.
Since January, the Arizona Legislature has introduced over 1,200 bills, of which 200 have the potential to affect your business. This year, over 60 bills related to taxing have been introduced, many of which directly impact you and your clients’ property taxes.
Furthermore, the potential for a professional service tax continues to remain a target. Just imagine the impact such a tax could have on a real estate transaction. Thousands of dollars would be added to the closing cost of purchasing a home because of taxes on appraisals, home inspections and related services.
February 19, 2016 was the last day to hear bills in their house of origin, with the exception of the Senate and House Appropriations committees, which are granted an additional week. The significance of this date is that many pieces of legislation will cease to continue through the legislative process, but no bill is truly dead until the legislature has adjourned for the year.
Until that time, the Arizona Association of REALTORS® will continue to fight on your behalf.
On the national front, NAR will focus on several public policy initiatives including:
Homeownership & Real Estate Investment Tax Policies
The growing federal debt, weak economic recovery, and continued growth of tax complexity have kept tax reform near the top of the national agenda. Members of Congress from both Houses and both parties have expressed a high level of interest in reforming the tax system, and President Obama has also expressed qualified support, especially for corporate or business tax reform. This ongoing debate places a variety of tax laws, including those affecting commercial and residential real estate, under increased scrutiny.
Credit, Lending, and Insurance Policies
Overly stringent lending standards have continued to limit the availability of affordable mortgage financing for credit worthy consumers. Federal policymakers are weighing a number of proposals aimed at creating healthier housing and mortgage markets. Additionally, Congress must reauthorize the National Flood Insurance Program to avoid the potential loss of 40,000 home sales each month according to NAR research.
Commercial
More than $1.2 trillion in commercial real estate loans will come due over the next few years, and many of these deals will have trouble getting financing. NAR supports consideration of legislation and regulations to protect and enhance the flow of capital to commercial real estate.