Our Top Three Advocacy Issues

BY CATHERINE BEST

New Jersey Realtors® Leadership Team and Government Affairs Department returned to Capitol Hill, in Washington D.C. for the first time since March 2020 to speak with New Jersey federal elected officials. To successfully advocate for member businesses, homeowners, private property rights, and the future of the industry, it is vital to meet with members of Congress and their staff about issues that directly impact New Jersey Realtors®. Meetings like our annual Hill Visits keep real estate issues top of mind and provide congressional offices with key insights into the local housing markets in their districts. Here are the top three issues we discussed with members of the NJ Congressional Delegation.

TAXES

State and Local Tax Deduction

The SALT deduction cap makes it more expensive to live in the Garden State and NJ Realtors® is advocating to abolish it. It first became law following the passage of the Tax Cuts and Jobs Act and was set in motion for the 2018 tax year. The deduction gives taxpayers the ability to deduct what they’ve paid in state and local taxes on their federal tax return. Prior to 2018, there was no limit to the deduction, but currently, the deduction is capped at $10,000.

According to the National Association of Realtors®, the tax code penalizes families who file joint tax returns since the deduction cap is limited to $10,000, no matter if you file single or joint. NAR strongly supports changing the deduction cap to $20,000 for joint returns and indexing the cap for inflation.

Preserving 1031 Like-Kind Exchanges

1031 like-kind exchanges have been recognized by U.S. tax law to swap investment properties and defer taxes on capital gains. It allows for further investments, flexibility, expansion, and job creation. At a time when the commercial real estate sector is still suffering amid the effects of the pandemic and needs additional flexibility, it is critical to keep these as an option.

Keeping 1031 like-kind exchanges in motion is a top issue impacting the commercial real estate industry. NJ Realtors® is advocating to preserve them as it promotes further investment and job creation in our state. The National Association of Realtors® will continue to educate congressional offices on this issue and its importance to the economy.

FAIR HOUSING

Ensuring fair housing for all is a top priority of New Jersey Realtors® and the National Association of Realtors®. Discrimination does play a role when it comes to purchasing a home, and according to the National Association of Realtors®' 2022 Obstacles to Home Buying report, approximately one-third of Black potential home buyers faced discrimination during the home buying process due to their race/ethnicity.

New Jersey Realtors® and NAR support additional funding for the Department of Housing and Urban Development to fund fair housing education, enforcement, grant programs, and state civil rights agencies. NAR also supports increased housing discrimination testing.

NATIONAL FLOOD INSURANCE PROGRAM

NAR and New Jersey Realtors® believe Congress should pass a long-term reauthorization of the NFIP and include meaningful reforms that open the door to private market flood insurance and modernize flood mapping and mitigation investments. Flood insurance is required for a mortgage in more than 20,000 communities nationwide and as of June 2016, this represents 5.08 million policies. New Jersey ranks fourth in the nation in the number of NFIP policies in effect and third in the total value of claims paid. While there is a growing private market for flood insurance, millions of small businesses and homeowners currently depend on the NFIP to protect their property against flooding, the most costly and common natural disaster in the United States. Without flood insurance, property owners would have to rely on the federal government for taxpayer-funded disaster relief after major floods.