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2002 Texas Association of REALTORS®
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| It is important that each local board or association respond consistently to each of
these issues as these are the positions adopted by the TAR Legislative Committee and
approved by the TAR Board
of Directors. TAR's legislative positions are communicated to legislators prior to each session. TAR's success in the legislative process is largely attributed to our having a unified voice on issues relating to the real estate industry and private property rights. TAR's communication with legislators should only reinforce what has already been communicated to them by their local REALTORS®. |
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As you review the candidate questionnaire with each candidate, please communicate our positions on each of the issues in the questionnaire. The process of educating candidates and reinforcing our positions to incumbents about the issues important to REALTORS® is the beginning of a successful session.
If you have any questions or need additional information, please do not hesitate to contact the TAR Governmental Affairs Department at 1-800-873-9155.
During previous legislative sessions, there have been various proposals advocating new taxes. These taxes range from a state income tax, additional taxes on business, and “sin” taxes among others. TAR has actively worked with the Texas Legislature to protect against a tax on real estate commissions. At the same time, TAR supported efforts to reduce property taxes for homeowners, which would make the cost of homeownership more affordable. Many other industry representatives voiced similar concerns.
As our state’s economy grows, changes, and diversifies, legislators will continue to look for ways to restructure the current tax system. TAR will continue to have an active role in these tax debates in order to protect our industry and support private property rights.
TAR Position on Tax Question #1In 1997, the Texas Legislature debated overhauling the Texas tax structure to provide tax relief to homeowners. During this debate, a proposal was initiated that would have placed a tax on the professional services of REALTORS®. This tax would have, in effect, been a personal income tax to a small, select group of Texans. TAR is opposed to any tax that unfairly penalizes individuals because of their profession. |
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TAR is committed to working with the Texas Legislature to create a tax policy that is just and fair to all Texans.
The proposal that was introduced during the last legislative session was an attempt to change the way Texas finances its public school system. While the current financing structure may need to be addressed, the bill that was filed last session is not the correct fix for such a complex issue.
TAR opposes any proposal that would increase the cost of attaining homeownership and potentially hinder the state’s economy. The real estate industry is an integral part of the overall state economy, and any downturn in housing has a direct effect on the economy. TAR supports working closely with legislators on fixing the current financing system while still protecting the real estate industry.
TAR supports reviewing the current tax structure for loopholes that may be afflicting the state’s ability to effectively provide within the means of the state budget. For example, the franchise tax currently is not applicable to Limited Liability Partnerships (LLPs). This tax loophole costs the state millions of dollars in lost state revenue. In addition, many corporations are reviewing changing their business structure so as to take advantage of the loophole, which may further hinder the state’s ability to provide basic services. TAR supports closing various tax loopholes that are fundamentally unfair.
In 1991, significant changes were made to the Texas Election Code resulting in detailed disclosure of contributions to and from political action committees (PACs), candidates, lobbyists, corporations, and individuals. These laws were intended to prevent corporate contributions to candidates and provide more accountability on legal contributions to candidates.
| During the last decade, the cost of running for state office increased dramatically. In some instances, candidates for state representative are now spending more than $250,000 to get elected. In some cases over half the money a candidate spent on a well-financed campaign came from one source, and it was not uncommon to see one wealthy individual or PAC put $100,000 into one race. These practices are legal; however, attention focused on how much individuals contributed directly or through PACs, and how those dollars are reported and spent. To address this concern, legislation continues to be filed that would place contribution limits on candidates, PACs, and individuals. |
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TAR has one of the largest memberships of any trade association in Texas. Its size alone is one reason TAR has one of the largest and most successful PACs in the state. REALTORS® contribute as little as $20 and as much as $5,000 in a year. (The average annual contribution to TREPAC is less than $50.) This level of participation is grassroots at its finest.
TAR has a vested interest to ensure that its PAC can continue to participate successfully and legally. Neither TAR nor TREPAC are being targeted by the proposed legislation; however, it is important that TAR closely monitor any proposal to ensure than any change in the law will not inadvertently impact the success of TREPAC.
TAR opposes limits placed on the size of contributions given by state political action committees and individuals. The Texas Association of REALTORS® is one of the largest grassroots trade associations in Texas with over 45,000 members. Each member is invited to make a personal contribution to TREPAC, Texas Association of REALTORS® Political Action Committee, in amounts as small as $25. This, by virtue of the membership, makes us one of the largest political action committees in Texas. Placing limits on this type of grassroots effort restricts an individual’s ability to participate in the political process.
TAR opposes spending caps for candidates. However, TAR is open to discuss concerns over campaign finance to ensure that the law maintains full disclosure and openness.
Currently, the governing body of a municipality has the power to enact zoning regulations in accordance with its comprehensive plan. When the governing body of municipality changes the zoning regulations from the comprehensive plan, these changes may adversely affect property value.
During the last legislative session, a private property rights bill was introduced that would have required municipalities to compensate a property owner when the municipality changed the zoning classification of a property that resulted in a de-valuation of the property of more than 25 percent unless the property owner gave consent for the change.
TAR Position on Down-Zoning QuestionTAR is a strong advocate of private property rights and believes a property owner should be compensated for a loss in value of real property when the actions of a zoning authority of a municipality changes zoning regulations over the objections of the property owner. However, TAR does whole-heartedly agree with the right of a municipality to zone and regulate growth, but this should be done on a fair basis and not at the expense of a property owner. |
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Texas Department of Insurance (TDI) Commissioner Jose Montemayor on Nov. 28, 2001, released his final order restructuring the state’s residential property policies to address the availability and affordability of homeowners insurance. Commissioner Montemayor states that the order is designed to shift the risk of loss for failure to maintain property onto the property owner while keeping the risk of loss for accidental and “fortuitous” losses with the insurance companies.
TAR supports the ruling of TDI because it strikes a balance between homeowners and the insurance industry. In addition, TAR does not support the idea of allowing insurance companies from excluding mold coverage completely from new homeowners’ insurance policies. The actions of a few homeowners have contributed to the mold “crisis” in Texas.
Several sessions ago, TAR was successful in passing home equity lending in Texas with strong constitutional protections. TAR fought against the lending industry to ensure that all protections for homeowners were placed in the state’s constitution. These protections cannot be weakened or changed without the approval of the voters.
The protections listed below are among the most important elements in the legislation. TAR opposes changes to these protections. Together, these protections defend against fraud by lenders while allowing homeowners full access to their home equity for borrowing purposes. The slightest change to any of these protections may provide just the opportunity for unscrupulous lenders to take advantage of homeowners using lending scams that have plagued other states.
TAR will continue to monitor the implementation of home equity lending in Texas and
will be a part of any discussions for changing the law.TAR Position on Home Equity Question #1TAR opposes any changes to the constitutional protections for homeowners with respect to home equity loans. All of the protections are needed to guard against fraudulent lending practices. TAR takes great pride in its role in the passage of the most conservative home equity legislation in the country. |
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Each of the following constitutional protections plays a vital role in protecting homeowners against home equity fraud or abuse:
 | 80% loan-to-value ensures that homeowners maintain 20% equity in their home. This protects the lender as well as the homeowner to insure completion of a home equity loan agreement. |
| Non-recourse protects homeowners from liability for anything other than their home in the event they default on their home equity loan. |
| Judicial Foreclosure provides for a judicial third-party review of all home equity loan defaults before foreclosure can take place. |
| Texas prohibits lenders from securing credit card debt with a home as collateral and prohibits credit cards from being used as a home equity loan debit card. |
| Proper disclosure and waiting periods ensure that the homeowner is cautiously aware of the facts before they put up their home for an equity loan. |
Cities and counties have made many attempts to obtain more regulatory authority over the permitting of commercial and residential development. While most cities maintain a legitimate permitting process and reasonable development laws, there is a small minority of municipalities that have a separate agenda whether it be to limit growth, protect the environment, or even to inhibit the activities of specific private sector developers. As a result of this activity, in recent years, the Texas Legislature has implemented state laws designed to minimize abuses by some local governments.
Counties don’t have as much regulatory authority over development as cities. However, some counties would like to obtain more authority to control development in unincorporated areas. TAR will closely monitor any attempt by counties or cities to obtain more regulatory authority that may infringe on private property rights.
TAR opposes the creation of unreasonable regulations and permitting procedures by cities and/or counties for land development. TAR represents the interest of private property rights and will work to fight unreasonable regulations on land development.
TAR Position on Property Rights Question #2During the last couple of years, the Texas Commission on Environmental Quality [formerly TNRCC] has adopted policies with regard to “wetlands” that exceed many federal mandates. TAR does not take specific stands on TCEQ positions. However, we do not support any agency’s effort to enforce mandatory environmental controls without specific authority for the Texas Legislature. |
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