LEGISLATION ISSUES

Tue, Mar 25
We are now 71 days into the 2008 legislative session and 1,369 bills have been introduced. Of those bills, AAR is actively tracking and monitoring almost 250 real estate-related bills.

Like last year, 2008 is seeing a ‘deluge’ of water legislation as well as all of the usual subjects: HOA legislation; tax legislation; State Trust Land reform; among many others.

Here is a round up of just a few of the bills that AAR has been working diligently on this session for you.

HB2141: HOME SALES; WATER SUPPLY DISCLOSURE would require real estate licensees to investigate and disclose residential water supply determination for city water PRIOR TO ADVERTISING any residential property. It also requires the supply status information be on ALL forms of advertising from signs and forms to the MLS and everything in between!

AAR spent more than four weeks in hearings and stakeholder meetings explaining our opposition to the bill which was that the legislation would basically make sellers and REALTORS legally responsible for disclosing a city’s water supply status. In Arizona, water supply status information is difficult to find if it is available at all. Additionally, properties developed prior to 1973 have no supply determination. Properties developed after the 1973 law require water supply disclosure to the first purchaser only; Water supply records are not kept for resale disclosure.

After AAR’s advocacy efforts, sellers and REALTORS will no longer be responsible for disclosing water supply status. The bill will now require subdivisions to record their water supply designation for every new subdivision in non-Active Management Areas.

HB2270 is another water supply disclosure bill but this one is a proactive effort by AAR to place water supply status disclosure on the accurate party-The Water Provider! This legislation will require the water utilities to provide, in writing, the water supply status to buyers within 3 business days if requested.

HB2611: HOAS; REAL ESTATE SIGNS is a bill that, if passed, would effectively negate all of the positive steps forward made with last year’s passage of SB1062. HB2611 was sponsored by Lucy Mason on behalf of a developer because REALTORS’ signs are falling over, laying on the ground or are otherwise in violation of last year’s legislation.
AAR went and met with the developer and Rep. Mason and the legislation has been dropped by Rep. Mason. That being said, while the legislation is dead now, it is likely to rear its ugly head again next year.

If REALTORS don’t maintain their signs, fines are likely against the seller and the ADRE may also start receiving complaints against licensees for failing to maintain their signs.

Three bills HB211, HB2642 and HCR2053 if passed would have placed a sales tax on commission and real estate transfers. One bill included a 3 ½% transfer tax and a 3 ½% commission tax so a real estate transaction would give 7% to the state! The good news? All of these bills have been successfully opposed and are dead! The bad news? As you all know, the current financial year deficit for the State of Arizona is $1.2 billion and forecasters are expecting a 2009 deficit of $1.7-1.9 billion. That’s right folks--BILLIONS! Having no money to spend is making the legislature very unhappy! Now is when they start looking for new sources of revenue income. Now is the perfect time for them to consider a real estate transfer tax!

The time is now then to make a permanent prohibition on real estate transfer taxes! AAR has started a ballot measure to constitutionally prohibit cities, towns, counties or the state from enacting a real estate transfer tax. Signature gathering is underway and we need to collect 245,000 valid signatures by July. Information on the ‘No New Tax on Our Homes’ campaign is available on RALLiNOW.com. If you are interested in gathering signatures, please visit the campaign website at: http://www.nonewtaxonourhomes.com and you can request a petition.