Michigan Association of REALTORS

MiCREA Monthly

News

Dave Maturen
MiCREA Chairman

A Letter To Our Members - February 2010

One of the plusses of being an appraiser is that one is not stuck behind a desk all day long. Fresh air and sunshine are two of the benefits. Snow drifts up to your knees andicy blasts are on the other end of the spectrum. Consolation: Spring is just around the corner.

Membership in MiCREA is automatic for all MAR / NAR members. As such you also have access to the NAR Appraisal section. If you have not visited the web site, you might find it of interest. Go to http://www.realtor.org/appraisal to check out the NAR Appraisal Blog, HVCC Code of Conduct: Myths and Facts, webinars, Appraisal Foundation news, AQB FAQs, designations and other appraisal related items. You can even get Appraisal updates delivered to your RSS reader. Remember - appraisers are REALTORS® too.

NAR Midyear meetings in Washington DC

MiCREA Board members who are members of the NAR Appraisal Section are Marty Wagar and yours truly. At least one of us will be attending the NAR Midyear meetings in Washington DC in May and will bring back pertinent news to our readers.

Potential changes in the State Board of Real Estate Appraisers composition. House Bill 5313.

The House Bill 5313 would amend Article 26 (Real Estate Appraisers) of the Occupational Code, 1980 PA 299, to change the make up of the State Board of Real Estate Appraisers. Currently, the SBREAconsists of 3 public members and 6 professional members (two currently on MiCREA). The professional members comprise 3 certified general real estate appraisers, 1 certified residential real estate appraiser, and 2 state licensed real estate appraisers. The bill would replace the 2 state licensed real estate appraisers with 2 members who are either state licensed real estate appraisers or certified residential real estate appraisers. This change was prompted by the rush to the Certified Residential license level for Licensed level for a number of reasons among them being able to "supervise" trainees - or as they are known in Michigan- Limited Appraisers.This left many CR level members of the SBREA without a legitimate spot.

The bill would also delete a requirement that at least one of the professional members be employed by a state or nationally chartered bank, savings bank, savings and loan, credit union, federally chartered farm credit institutions, or entity regulated under the Mortgage Brokers, Lenders, and Servicers Licensing Act, 1987 PA 173.

Business community opposes Governor’s budget proposal; Frustrated by lack of reforms

Earlier this month, the Governor unveiled her proposed 2010-2011 budget. Unfortunately, this plan addresses two-thirds of the deficit through tax increases and stimulus money, while only touching upon state government’s much needed cost-saving reforms. Unfortunately, this proposal is a $400 million tax increase over the next 2 years followed by promises of cuts down the road.

The Michigan Association of REALTORS® has a long-standing position against any taxes on our industry. This proposal is a vast improvement from her 2% tax on services proposal of a few years ago, as it excludes business to business transactions and real estate commissions. Yet it falls short of making the significant government reforms necessary to balance the state budget into the future.

You may recall that the Michigan Association of REALTORS® banded together with other members of the business community to form a coalition to push for government reform before taxation. The “One Voice for Reform” coalition urges real reform without tax increases in order to balance the state budget. REALTORS® are fighting for survival and have a deep concern for the future of the state. The coalition knows that some of the choices to be made are tough, but difficult decisions are being made everyday by families and job providers across Michigan and government has a responsibility to do the same.

Since the beginning of 2010, members of the coalition have met with over 128 Legislators from both parties and both chambers to discuss our structural deficit and the importance of enacting cost saving structural reforms to balance the budget. These meetings will continue until we have met with all lawmakers. Members of our organizations, including the real estate industry, have been enacting cost saving reforms for almost a decade and are unwilling to pay higher taxes to support status quo government spending.

We are disappointed in the Governor’s budget plan and we encourage all legislators to go further to enact meaningful cost-saving structural reforms before moving on to tax reform in order to balance the budget by the September 30^th deadline.

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News from the IRS

It's that time of the year; Tax Season! The IRS offers a variety of helpful forms, and documents to help you in this busy time of year. Below are resources on choosing a tax preparer and how to receive an immediate tax refund for donating to Haiti.

Tax Preparers

Many taxpayers rely on a tax professional or tax software to file their returns. Most return preparers are professional, honest and provide excellent service to their clients, but some engage in fraud and other illegal activities. Fact Sheet 2010-3 How to Choose a Tax Return Preparer and Avoid Preparer Fraud, gives helpful hints for choosing a return preparer - what to look for, and what to avoid.

Donating to Haiti

People who give to charities providing earthquake relief in Haiti can claim these donations on the tax return they are completing this season. Cash contributions made between January 12 and February 28 specifically for the relief of victims in areas affected by the January 12 earthquake in Haiti may be claimed on either 2009 or 2010 returns. See News Release IR-2010-012 for more information.