Southwest Missouri Legislators
2006 Capitol Conference
Post Election Report from Sam Licklider
NAR Grassroots Message
As REALTORS, its important to stay informed on legislation that could have a major impact on your livelihood and we appreciate your involvement. This update serves as your "eye on Congress" and will keep you informed about congressional measures that affect the nature of your business. However, keep in mind that many Action Center users are not receiving our messages due to spam filters. This can be avoided. Talk to your IT managers about the opt-in nature of the Action Center and insist they always allow messages to come through from bounces@naractioncenter.com
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In-district activities abound in the midst of the August recess of the second session of the 108th Congress. The following is an update of NARs legislative policy priorities that we will encourage Congress to work on when it returns. Our message remains simple urge Congress to complete its work on these issues! For more details about each issue, please see the Issue Summary.
Banks in Real Estate
With 253 House cosponsors and 28 Senate cosponsors, NAR continues to encourage Congress to enact a permanent barrier to keep big banks out of the business of real estate. Currently, there is a provision in the Transportation & Treasury appropriations bill that bars for one year the Treasury from finalizing the rule to allow financial holding companies and bank subsidiaries into real estate brokerage. Floor action will occur when the House returns from its summer recess. The Senate will take up the appropriations bill at the conclusion of House action. If you see Members of Congress in August, talk to them about enacting a permanent fix this year. For more information contact Ed Miller at emiller@realtors.org.
Federal Preemption of State Laws
NAR continues to maintain vigilance and urges Congress not to abdicate its responsibilities by permitting such policy-making by regulatory bodies to proceed unchecked. REALTORS® should also be vigilant and help safeguard state laws that protect REALTOR® business and consumers. For more information or to report any state law preemption activities in your state, contact Ed Miller at emiller@realtors.org
A bipartisan majority of the members of the House and Senate have sponsored legislation that would provide a tax credit for the construction, development and/or renovation of affordable housing. The bills (H.R. 839, S. 198 and S. 875) reflect a Bush Administration proposal. Senate Finance Committee Chairman Grassley (R-IA) and ranking member Baucus (D-MT) have included a modified version of this incentive in a small business and agriculture bill known as the Heartland Investment and Rural Employment (HIRE) Act (S. 2761). Ask your Senator to contact Senators Grassley and Baucus to request prompt action on the legislation this year. For more information contact Linda Goold at lgoold@realtors.org.
FHA Zero Downpayment Assistance
H.R.3755 is backed by NAR and would allow for increased homeownership opportunities for those who are able to make monthly payments but are not able to come up with a downpayment. The measure has been approved by the House Financial Services Committee, and is awaiting floor consideration. There is no companion legislation in the Senate. Senators should be urged to introduce companion legislation. For more information, contact Gary Weaver at gweaver@realtors.org.
FHA Loan Limits
H.R. 4110 is pending in Committee. The bill would adjust the FHA mortgage limit from 95% of an areas median home price to 100% and raise the limit on FHA loans in high cost areas. NAR is asking Senators to introduce companion legislation in the Senate. House members should be asked to cosponsor H.R.4110. For more information, contact Gary Weaver at gweaver@realtors.org.
Do Not Fax
NAR fully supports the enactment of the Junk Fax Prevention Act (H.R.4600 and S.2603) and continues to make significant headway to mitigate the burden created by the Federal Communications Commission (FCC). These bills would restore the established business relationship exception for faxes, allows for verbal permission, and also provide additional consumer protection via its opt-out provisions. H.R.4600 passed the House by a voice vote; a floor vote on S.2603 is expected when the Senate returns from the summer recess. Members of Congress need to know about the millions of copies of permission forms REALTORS® would have to keep track of if Congress fails to enact these bills. For more information, contact Marcia Salkin at msalkin@realtors.org.
ENACTED THIS YEAR
Reauthorization of Flood Insurance Program Signed into law by President Bush on 6/30/04 (Public Law No. 108-264)
ATTACHMENT B
BILLS SUPPORTED AT THE JANUARY BOD MEETING
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HB 795 |
Johnson, Rob |
Places additional qualifications on members of boards of equalization in charter counties. |
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Summary: |
(FIL) HB 795 -- Board of Equalization Sponsor: Johnson (47) This bill prohibits any municipal official, member of a school board, or an employee of a school district from serving on any county board of equalization. The bill also requires anyone serving on a county board of equalization to have some level of experience as a real estate broker, real estate appraiser, home builder, property developer, lending officer, or investor in real estate. |
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Summary: |
(FIL) HB 903 -- Circuit Breaker Sponsor: Fares This bill changes the elements of qualification and the amount of credit allowed under the senior citizen/disabled person property tax credit, commonly known as circuit breaker. The bill: (1) Increases the amount of exemption allowed for a married couple from $2,000 to $4,000; (2) Increases the maximum income allowed to claim a credit from $25,000 to $30,000; and (3) Increases the minimum base from $13,000 to $18,000. The minimum base is the maximum level of income at which the taxpayer receives as a credit all property taxes paid up to the maximum of $750. |
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HB985 |
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Revises laws on the practice of real estate. |
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HJR 29 |
Ward |
Proposes a constitutional amendment extending legislative term limits to 12 years.. |
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Summary: |
(FIL) HJR 29 -- Term Limits Sponsor: Ward This proposed constitutional amendment increases the total number of years that a person may serve in either house of the General Assembly from eight to 12 years and increases the total number of years a person may serve in the General Assembly from 16 to 24 years. |
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SB 756 |
Shields |
Establishes a small business health insurance tax credit program |
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Summary: |
(FIL)
SB 756 - This act establishes the Small Business Health Insurance Assistance Program to allow small employers a tax credit for costs associated with health insurance premiums paid on behalf of employees. Small employers are those with two to 25 employees who work at least 30 hours per week. The act also specifies that a farmer's spouse may be considered a second eligible employee if the spouse is hired by the farmer. All eligible small employers will receive a tax credit of 25% of the amount paid annually in premiums for eligible employees. A small employer will receive higher credits for up to four years if the employer does not pay its employees' health insurance premiums on January 1, 2004, and begins to pay for its employees' premiums after that date. The tax credit is conditioned upon receiving appropriations from general revenue or the tobacco settlement to offset the costs of the tax credit to the state. The aggregate amount of tax credits awarded under the bill's provisions may not exceed $10 million.
The act has an expiration date of December 31, 2008.
This act is substantially similar to SB 95 (2003) and HB 1219 (2002).
STEPHEN WITTE |
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SB 837 |
Caskey |
Requires the Director of Revenue to provide notice of certain remedied delinquencies |
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Summary: |
(FIL)
SB 837 - This act requires that when a professional licensee of this state has been found to be delinquent on his or her taxes and then remedies such delinquency, the director of revenue shall, within ten business days, provide written notification as to such remedy.
JEFF CRAVER |
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SB 864 |
Dougherty |
Creates a tax credit for lead abatement and a dollar check-off for the Childhood Lead Testing Fund |
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Summary: |
(FIL)
SB 864 - This act creates a tax credit for the abatement of lead contamination and designates a dollar check-off on the Missouri income tax return for the Childhood Lead Testing Fund.
This act creates the "Lead Abatement Tax Credit Program", which allows a tax credit for costs incurred for the abatement of lead contamination in an individual's dwelling. The amount of the tax credit shall be equal to the lesser of 50% of the costs or $5,000 per dwelling. However, the aggregate amount of these credits shall not exceed $2 million dollars. These credits shall be transferrable and negotiable, but non-refundable. This Program shall apply to all tax years ending on or after December 31, 2005.
The Director of the Department of Economic Development shall determine what the eligible costs are for the credit to be claimed. Eligible costs will be limited to the reasonable costs for abating the property and returning the dwelling to a substantially similar condition. Rule-making authority is given to the Director of the Department of Economic Development, who must consult with the Directors of the Departments of Health and Senior Services and Revenue.
A new Section 143.603 creates a one dollar check-off on the Missouri income tax return. The money designated by the check-off will be deposited into the Childhood Lead Testing Fund, which was created in section 701.345, RSMo. The check-off of one dollar is primarily for taxpayers who are to receive a refund. However, taxpayers who owe taxes may also contribute to the fund and any taxpayer may elect to contribute more than one dollar.
LORIE TOWE |
BILLS OPPOSED AT THE JANUARY BOD MEETING
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HB 797 |
Whorton |
Changes calculation and reporting of assessed valuation requirements for certain counties. |
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Summary: |
(FIL) HB 797 -- Property Tax Levies Sponsor: Whorton Under current law, all counties, beginning in 2005, will be required to separately calculate and make adjustments to tax levies within residential, commercial, agricultural, and personal property classifications, then combine those tax rates into one county levy. St. Louis County has been required to do this since 2003. This bill repeals the requirements for all counties, except St. Louis County. |
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HB 806 |
Selby |
Exempts residential property owned by those 62 and older from certain increases in assessed valuation. |
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Summary: |
(FIL) HB 806 -- Property Tax Homestead Exemption Sponsor: Selby This bill authorizes a homestead exemption for purposes of real property taxation for all taxpayers 62 years of age or older. The bill freezes the assessed valuation on any residence owned by qualified taxpayers if the residence has been used as a principal residence for three or more of the previous years. The state will be required to reimburse the losses of any political subdivision as the result of the homestead exemption through appropriation based on regulations established by the State Auditor. The bill has an effective date of January 1, 2005. |
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HB 823 |
Cooper, W |
Changes calculation and reporting of assessed valuation requirements for certain counties. |
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Summary: |
(FIL) HB 823 -- Property Tax Levies Sponsor: Cooper (120) Under current law, all counties, beginning in 2005, will be required to separately calculate and make adjustments to tax levies within residential, commercial, agricultural, and personal property classifications, then combine those tax rates into one county levy. St. Louis County has been required to do this since 2003. This bill repeals the requirements for all counties, except St. Louis County. |
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HB 902 |
Fares |
Requires certificates of value to be filed with the assessor's office. |
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Summary: |
(FIL) HB 902 -- Certificate of Value Sponsor: Fares This bill requires that a certificate of value containing the actual amount of consideration or reasonable estimate of the true current market value and a statement of actual or intended use of property be filed with the assessor before the recorder of deeds can accept the filing of any instrument by which any lands or other interest in real property are conveyed to the purchaser or any other person. One copy of the certificate of value will be forwarded to the State Tax Commission for use on certain administrative tasks and one retained by the assessor for the purpose of assisting in implementing general reassessment or implementing an assessment and equalization plan. The bill makes certain exemptions from the requirements and sets penalties for violations. The bill has an effective date of January 1, 2005. |
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Summary: |
(FIL) HB 993 -- Assessment of Property Sponsor: Dougherty This bill authorizes a homestead exemption for purposes of real property taxation for taxpayers who have reached the age of 62 years or older. The homestead exemption amount will be any future increases in assessed valuation on the homestead from the year the taxpayer reaches the age of 62 or the effective date of the bill, whichever is later. The qualified taxpayer must file an affidavit with the county assessor verifying the age of the homeowner. The bill has an effective date of January 1, 2005. |
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Summary: |
(FIL) HB 997 -- Property Tax: Homesteads Sponsor: Muckler This bill authorizes a homestead exemption for purposes of real property taxation for certain taxpayers owning property used by them as a residence in Missouri. The bill freezes increases in the assessed valuation of certain taxpayer's residences after the taxpayer reaches the age of 65. Only taxpayers with household income of more than $39,000, adjusted by increases in the Consumer Price Index, will qualify. The state will be required to reimburse the losses of any political subdivision as the result of the homestead exemption through appropriations. The provisions of the bill will become effective July 1, 2005, and will expire six years from the effective date. The bill contains an emergency clause. |
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SB 709 |
Goode |
Creates a senior property tax deferral program |
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Summary: |
(FIL)
SB 709 - This act creates a senior citizen property tax deferral program. In brief, the system will allow senior citizens to defer payment of their property taxes until death, while securing the deferral with a lien on the real property. A detailed outline follows:
SECTION 135.037 (Definitions): Includes various definitions for use in the act.
"Equity interest" is defined and includes both outstanding secured debts such as a mortgage and accumulated deferred taxes.
"Homestead" is defined to include farm houses and surrounding land up to five acres; the term applies to multi-unit dwellings and permits a the percentage of the building comprising the domicile be considered a homestead; no homestead property may include more than five acres.
The maximum income limit for deferring 100% of property taxes is set at $32,000.
"Household income" includes all household income for the property (includes children or other relatives income if they live on the property).
SECTION 135.039 (Election of deferral):
A taxpayer may elect to defer property taxes under the act between January 1 and October 15 of any year. The election is made by filing a form with the County Clerk who will forward the form to the Department of Revenue (DOR).
Income level must be below the maximum limit of $32K.
A guardian or conservator may act for an individual seeking the deferral; a trustee may act as well.
A grievance for a claim denial follows the same procedure as any regular protest with the department of revenue.
SECTION 135.041 (Property requirements): In order to qualify for the program the property must meet the following requirements:
Must be individual's homestead;
Must be owned in fee simple or be in the process of being purchased in fee simple;
No federal law, contract, or deed of trust for the property can contain any prohibition to the deferral or property taxes;
Proof of insurance equal to or exceeding the market value must be shown and maintained throughout the deferral.
SECTION 135.043 (Form of deferral claim): The Department of Revenue shall provide a form where the applicant will:
Describe the homestead;
Recite facts establishing eligibility for the program including income;
Attach documents required by the DOR for demonstrating eligibility;
Sign a affidavit attesting that the statements in the claim are true.
SECTION 135.045 (DOR to notify the County Assessor):
DOR shall notify each County Assessor where a property is situated that qualifies for the deferral.
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