National Legislative News
Healthcare & Tax Reform
July is typically known for its fireworks on the 4th, but this year the real spectacle Americans witnessed was an end-of-month showdown in Washington, D.C. The Senate opened debate on the ACA only to vote it down in dramatic fashion in a late-night session. Read more from NAR
What does this have to do with REALTORS® and real estate? Republicans were planning to use the savings from healthcare reform to fund cuts within the House’s “Blueprint for America”. The “Blueprint” is a tax reform proposal drafted by Speaker Paul Ryan (R-WI) and others in House leadership. Their proposal would do the following:
- Increase in the standard deduction
- Lower tax rates
- Eliminates personal exemptions
- Eliminates all itemized deductions except for:
- charitable contributions and
- the mortgage interest deduction
With health care reform off the table for now, the Senate Committee on Finance has reached out to the National Association of REALTORS® (and others) for their input on crafting the most effective tax reform legislation. On July 17, NAR submitted a letter to the committee stating that the tax code does need simplification; however it should not be at the expense of homeowners.
NAR is publicly opposed to the Blueprint’s plans to eliminate most itemized deductions (see state and local taxes paid) and nearly double the standard deduction. The letter goes on to suggest that if this were to happen, home values would drop and the incentive to even owning a home would nearly vanish, noting that it would make it even more difficult for first-time buyers to enter the ranks of home ownership, hampering the housing industry and the economy as a whole. Additionally, the decrease in home values would mean that a person’s largest financial asset could be worth less than the debt remaining on it – putting their mortgage “under water”. Lower property values would then put a strain on local government and school district finances.
Flood Insurance
NAR has made enacting a five-year reauthorization of the NFIP a legislative priority for 2017. On July 19, 2017 NAR was able to reach an agreement to move one step closer to realizing this goal. House Financial Services Chairman Jeb Hensarling has agreed to key changes to H.R. 2874, “The 21st Century Flood Reform Act”, that now allow NAR to support the bill. NAR had previously opposed this legislation. These two significant changes removed the objections NAR had to the bill.
- The bill now contains no changes to current grandfathering rules
- Additional changes were made to address NAR’s affordability concerns
You can read the official NAR press release here.
State Legislative News
The state legislature is currently on recess after passing the state budget FY 17-18. However, as chronicled by OAR contract lobbyist Neil Clark, Senate President Larry Obhof (R-Medina) has eluded to having legislators return to Columbus in August to possibly override more of Governor Kasich’s budget vetos. For the entire state report, click here.
Local Legislative News
Locally, Kettering announced that it will be putting forth a renewal levy on November ballot. This would renew a levy originally passed in 2013. Since inception, it has raised $6 million annually and the renewal will not raise taxes for residents.
Trotwood has announced that they are accepting applications to fill a vacancy on their school board. All applications are due by July 31. Those interested can contact Janice Allen for an application at 937-854-3050 ext 1137.
Finally, DABR’s Government Affairs sub-committee began screening candidates who are running for local offices in 2017. On Thursday, July 27, candidates for Huber Heights City Council were interviewed, and other community races will be added as election filings reach their deadlines. Candidates may receive financial assistance through RPAC funds and/or an endorsement from DABR. We will keep you posted as the committee makes those decisions.
