Michigan Association of Realtors

Last week, 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 governmentÍs 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.}