UnReal Estate
Money Buys Power
The NC Association of Realtors reported new spending of $128,771.20 for lobbying expenses in the month of May, bringing lobbying spending for 2007 to $494,886.36 not including other spending through the NC Realtors PAC or the antonymously named NC Homeowners Alliance 527 committee funded entirely by the NC Realtors which will be submitting semi-annual reports for 2007 in July.
Companion Bill?
Reports also list a $5,000 per month retainer to Public Solutions, Inc., the firm of Chris Sinclair who also runs the Triangle Community Coalition, an organization of builders, developers and realtors (formerly known as the Wake County Real Estate and Building Coalition) which is also actively opposed to local government funding option bills that include a land transfer tax for schools and infrastructure.
Fact Check
In a recent response to Chris Fitzsimon, the NC Association of Realtors' Tim Kent claimed that Realtor commissions averaged 5.1%. Actually that is a national average compiled by "REAL Trends" an industry group that collects voluntary self-reported information from real estate companies. In North Carolina that average is approximately 5.6%. Only a few metro areas actually report but the average in the Triangle is 5.4%, with Charlotte at 5.8%. Various factors supress the reporting of the typical 6% commission including new home sales, back-to-back sales and negotiated fees where a Realtor is buying and selling for the same client. Even at the claimed 5.1% Realtors' take from a typical home sale has been increasing faster that the rate of inflation as home values have risen. Home owners are giving more money to Realtors in adjusted dollars even as the electronic age has Realtors doing less of the leg work.
Let Them Eat No Cake
And the claim of low average take home pay individual for Realtors? Studies that show that hot real estate markets attract more people to the business, making individual slices of the cake smaller. The homeowner is still paying for the whole growing cake which the NC Association of Realtors wants to have and eat. NC schools and local governments dealing with the effects of growth? Let them eat no cake.
Assets - Liabilities = Equity
The NC Realtors make a big deal about equity but never tell the whole story. In business, assets minus liabilities equals equity. Home equity is misleadingly described as home value minus mortgage debt and never includes all liabilities. The true cost of home ownership is greater than the numbers on a closing statement and includes liability for public services like schools, sewer, water and emergency services. The NC Realtors are desparate to keep liabilities off the closing statement to promote a false sense of affordability, much like the sub-prime lending market has massaged loan documents to hide the true costs of home ownership.
What Would Angie Drive?
The NC Realtors campaign against local funding options features an alleged average homeowner "Angie" driving a red pick up truck. In real life "Angie" has been spotted in west Raleigh tooling around in a shiny black Mercedes-Benz E430 with cream leather interior, a 2002 model that retailed around $50,000. Not exactly average.
Can you tell all this bothers me? That's why I created a new blog to keep track of the legislative antics and pollution of our politics.
Crossposted at Progressive Pulse
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Great wrap, Greg.
I'm sure Mr. Kent's dazzling white smile is all upside-down about the mean old liberals picking on the oh-so-oppressed leadership of the NC Realtors Association.
If the option for local governments to impose a transfer tax doesn't pass in the General Assembly, it will be for one reason and one reason only: The Honorables Got Bought.
It would be nice if the Asheville crew...
could meet up with you to follow Angie papparazi style. Then, put out a video about her "average" lifestyle with clips from their commercial interspersed. Show what a bunch of B.S. their lies are in a way people can understand, by macacaing them.
One man with courage makes a majority.
- Andrew Jackson
So here's what you can do ...
I just go tthis as an email. Feel free to copy and distribute.
Fellow Democrats, Please pass this around and support the Land Transfer Tax by writing to the list below. The thing to emphasize is to LET EACH COUNTY DECIDE, democratically, whether the Land Transfer Tax is right for them.
Thanks, Karl G. Kachergis, Chair, Chatham County Democratic Party
____________________________________
UPDATE ON THE LAND TRANSFER TAX
The Senate Democratic Caucus met last week and as of now, we don't even have enough DEMOCRATIC Senators who will vote for having LTT included in the final negotiations.
The House proposal relieves us from Medicaid responsibility and includes 0.4% LTT by voter referendum. That's not 1%, but it would get our foot in the door and is far better than where we will be, if we don't get it!
If approved as is currently being negotiated, without LTT, Chatham will inch forward with 200K in '08, 6-700K in '09, be saved by "Hold Harmless" in '10 (break even) and gradually go back up as our Medicaid responsibility is phased out. This is simply nuts and we will be in serious revenue trouble, if we don't get busy.
They will meet again on Monday for further discussion/decision.
We need to email our concerns immediately and try to turn this around.
POINT to Make!
While we are pleased that both houses are working towards Medicaid Relief, the Senate needs to negotiate more in line with the House proposed 0.4% Land Transfer Tax by Voter Referendum. LTT is a must for Chatham and many other high growth counties! This is not a game of Lobbyist vs.Citizens; let us vote on it!
Democratic Senators:
Charles Albertson Charliea@ncleg.net
Bob Atwater Boba@ncleg.net
Marc Basnight Marcb@ncleg.net
Doug Berger Dougb@ncleg.net
Julia Boseman Juliab@ncleg.net
Daniel Clodfelter Danielc@ncleg.net
Janet Cowell Janetc@ncleg.nett
Walter Dalton Walterd@ncleg.net
Charlie Dannelly Charlied@ncleg.net
Katie Dorsett Katied@ncleg.net
Tony Foriest Tonyf@ncleg.net
Linda Garrou Lindag@ncleg.net
Steve Goss Steveg@ncleg.net
Malcolm Graham Malcolmg@ncleg.net
Kay Hagen Kayh@ncleg.net
David Hoyle Davidh@ncleg.net
Clark Jenkins Clarkj@ncleg.net
Ed Jones Edwardj@ncleg.net
John Kerr III Johnk@ncleg.net
Eleanor Kinnaird Elliek@ncleg.net
Floyd McKissick Jr Floydm@ncleg.net
Vernon Malone Vernonm@ncleg.net
Martin Nesbitt Martinn@ncleg.net
William Purcell Williamp@ncleg.net
Joe Queen Joeq@ncleg.net
Tony Rand Tonyr@ncleg.net
Larry Shaw Larrys@ncleg.net
John Snow Johnsn@ncleg.net
R.C. Soles Rcsoles@ncleg.net
A.B. Swindell abs@ncleg.net
David Weinstein Davidw@ncleg.net
All I'm asking anyone to do, is to - write 1 email - and address it to the list above.
15 minutes of your time could mean the world to Chatham County and the other high growth counties of North Carolina. Please forward this email to your E list!
Fellow Democrats, please read the talking points attachment about the Land Transfer Tax which I have opened below. I want to again stress that if this bill passes, the Land Transfer Tax does not become law. This bill will allow each individual county to decide, by referendum, whether or not they want to enact a Land Transfer Tax. The sad truth is that the legislators are caught in a real pickle between giving their counties a choice about how they will raise needed funds and the powerful real estate - developer lobby in Raleigh which wants to deny us that choice.
Interestingly, many realtors in our area support the Land Transfer Tax. They have a stake in our community and see it benefitting their business as well as our county.
Thanks, Karl G. Kachergis
Chair, Chatham County Democratic Party
FYI - some of these talking points come from the NC County Commissioners Association.
Land Transfer Tax Talking Points
· A land transfer tax is not a recurring tax but is a sales tax on the value of real property, both commercial and residential, when the property is sold.
· A one percent land transfer tax would generate nearly $800 million annually for counties and cities to meet their infrastructure needs.
· A land transfer tax targets revenues to high-growth areas so that counties and cities can address rapidly increasing infrastructure needs, such as schools ($10 billion), roads ($10 billion for city needs), and water and sewer ($7 billion).
· A local-option land transfer tax keeps the revenues in the community where it is levied.
· A land transfer tax eases pressure on rising property taxes so that long-time residents, many of whom are retired and living on fixed incomes, can afford to stay in their homes.
· Six counties in North Carolina - Camden, Chowan, Currituck, Dare, Pasquotank and Perquimans - already have a land transfer tax, which has helped them keep pace with growth without huge increases in property tax rates.
· Outcomes: homes remain affordable; job and economic growth is robust; residential growth is vibrant; schools benefit; and property taxes remain stable.
· Since 2000, four of these counties rank among the fastest growing in the state, experiencing growth significantly greater than the state's growth rate of 10 percent.
· Four of the top five counties in per capita spending on education have the land transfer tax.
· According to the Tax Foundation of Washington, D.C., 36 states already have a statewide or local land transfer tax.
· The U.S. Census Bureau projects that North Carolina's population will increase to 12 million by 2030, which will make us the seventh-largest state.
· These new citizens will lead to the construction of approximately 2.4 million new residential housing units.
Thank you,
Mike
Yup, just an average Jane
Nice Benz, Ang.
Thanks for keeping after this Greg.