2012 Legislative Preview

In light of the economic challenges facing the state of Kansas, REALTORS® believe that increasing the number of affordable housing opportunities for Kansas families and increased investment in commercial real estate positively impacts our state’s neighborhoods, communities and the overall growth of the Kansas economy.

The 2012 legislative session begins in Topeka on January 9. The Kansas City Regional Association of REALTORS® is committed to the following public policy priorities for the 2011 Legislative Session in Kansas:

Oppose any tax reform proposals that seek to eliminate the ability of homeowners to claim itemized deductions for mortgage interest or state and local property taxes. REALTORS® support fundamental income tax reform that will provide meaningful tax relief and create economic development opportunities for Kansas families and businesses. We further believe that the goal of tax reform should be to reduce the tax burden on Kansans and not shift that tax burden between different classes of taxpayers.

REALTORS® believe that with the challenges of the current struggling economy, now is not the time to increase the tax burden on Kansas homeowners.

Oppose any tax reform proposals that would increase the tax burden on businesses and the self-employed by levying a tax on home sales, eliminating vitally important business sales tax exemptions or taxing services. Additionally, REALTORS® oppose any efforts to increase the tax burden on Kansas families and small businesses through a sales tax on services or increased taxes on real estate sales or the elimination of important sales tax exemptions for small businesses.

Support fundamental reform of our property tax system to provide property tax relief to small businesses and homeowners. Property taxes collected by state and local governments have nearly doubled from 1997 to 2010. During the same time, the state’s population grew 10 percent and the average mill levy rate increased by 19 percent.
Property taxes represent a large burden on Kansas households and a major cost to businesses. The increase in the property tax burden of Kansas small businesses and homeowners calls for reform of our property tax system.

REALTORS® support reform that will slow the increase in property taxes and ensure that local governments exhibit transparency when approving increased property taxes and provide property owners with a certain degree of predictability on their annual property tax burden.

Support legislation prohibiting cities and counties from imposing “driveway taxes” on businesses and homeowners. In 2010, the city of Mission imposed a new tax on all developed real estate that has been commonly referred to as the “driveway tax.” The city of Mission has argued that the tax is a “user fee,” but in fact this is a tax that increases the tax burden on property owners.

REALTORS® support the repeal of this ordinance so that small businesses and homeowners will not continue to be forced to pay an illegal tax simply for owning a property in the city (which should be covered under the existing property taxes levied by the city).

Support legislation regulating appraisal management companies. Over the last several years, appraisal management companies have taken over the real estate appraisal industry. Many real estate appraisers have had to affiliate themselves with these appraisal management companies, which has caused several problems in the appraisal industry.

With the absence of regulations, several practices adopted by the appraisal management companies have resulted in appraisers without the geographic competency to appraise certain properties being assigned to perform appraisals. This leads to an increase in the number of inaccurate appraisals and has harmed parties involved in real estate transactions.

Under the Dodd-Frank Act, the Kansas Real Estate Appraisal Board is required to seek legislation regulating appraisal management companies. We support this type of legislation at the state level.

Questions? Contact Jeff Carson at jeffc@kcrar.com or 913-266-5916.