Government Affairs Update

February 27, 2009

Bill Would Repeal Non-Profit and Trade Association GET Exemption and More...

HB 1742 is an Omnibus Tax Bill which would impact REALTORS® individually and professionally by:

• Subjecting sole proprietorships, partnerships, corporations, or limited liability businesses to the GET on the sale of real property;

  • HAR strongly opposes this provision, as sales of real property are already subject to the Conveyance Tax.
• Repealing the GET exemption for non-profits and trade associations, except those for religious purposes (charitable contributions would still be exempt);

  • HAR strongly opposes this provision, as it would subject membership dues to taxation and increase the cost of doing business for REALTOR® members during these tough economic times.
• Repealing GET Exemption for certified or approved housing projects.

  • HAR strongly opposes this provision, as it has historically supported low and moderate income affordable housing initiatives, and this bill would impact those initiatives

Also, this bill would:

• Reduce the GET from 4% to 3.5% for qualified businesses and contractors; and
• Subject sole proprietorships, partnerships, corporations, or limited liability businesses to the GET on securities, commodities, and bond sales.

Although the Committee has deferred the measure, we will continue to keep you updated.

Click here for testimony on HB1742

Pet as Protected Class Bill Deferred Indefinitely

The Committee on Commerce and Consumer Protection heard the following pet related bills:

• SB 1157, which would create a protected class based on domesticated pets.

HAR Position
HAR voiced its concerns on the unintended consequences of this bill, such as:

• The impact on landlords and their insurance coverage;
• The impact on landlords and liability under the law; and
• The cost of maintenance of common elements.

HAR believes that in a situation where a tenant has a letter or prescription from an appropriate professional, such as a physician, and meets the definition of a person with a disability, under the Americans with Disabilities Act, he or she should be entitled to a reasonable accommodation that would allow an emotional support animal in the rental unit, which are already provided for under the law.

The Committee took note of the testimonies in opposition and deferred both measures indefinitely.

Click here for testimony on SB1156

Click here for testimony on SB1157

Protecting Real Estate Licensees' Reputations from Frivolous Complaints
HB 1212 removes records of complaints from the exceptions to the types of information that are not subject to disclosure as public documents.

This would remove the current practice of public reporting of complaints filed against a licensee, regardless of the outcome of the complaint.

HAR Position
HAR believes there needs to be a fair and equitable process so that licensees’ reputations are not harmed by unwarranted or frivolous complaints. Under the proposed measure, the public would still have the right to information on a licensee’s disciplinary history where there has been a finding of wrongdoing and resulting disciplinary action has been taken.

The Committee has passed this bill with amendments.

Click here for testimony on HB1212

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