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Page 25 JANUARY 2015 • VOLUME 19 • ISSUE 9
State and local associations get ready for a busy legislative season By Riki Markowitz
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n Jan. 13, 2015 the 84th Texas Legislature will convene and make policy decisions that will impact the lives of real estate industry professionals. Throughout Texas’ 83rd session in 2013, 5,868 bills and 449 constitutional amendments were introduced. During that time, the Texas Association of Builders (TAB) tracked over 1,100 pro-real estate bills, including, but not limited to the State Water Implementation Fund of Texas; a
property rights amendment to SB 1596, giving home buyers control over installing fire sprinklers; and a homestead tax exemption for veterans. Of those, 182 were signed into law. This past November, voters elected a new slate of freshman legislators, plus a new governor and lieutenant governor. So on the eve of the 84th session, the question is whether real estate industry representatives have been able to make headway on top issues and forming relationships with the House and Senate’s newest, most influential members. On the plus side, says Scott Norman, executive director at TAB, many incoming representatives campaigned on issues that affect real estate professionals, as well as home owners and new home buyers. To find out what bills and constitutional amendments the Texas real estate community is working on in 2015, Realty Line spoke with representatives at TAB, the Texas Association of REALTORS (TAR), and Home Builders Association of Greater Austin (HBA). “The number-one priority for any number of associations, including HBAs across the state, is in finding adequate funding for roadways, which includes transportation and infrastructure funding,” says Harry Savio, VP of public policy for HBA Greater Austin. While Proposition 1 passed by a margin of four to one this past November, more work needs to be done to secure funding that will accommodate Texas’ population boom. Daniel Gonzalez, the government affairs representative at TAR, is confident that lawmakers are not going to increase fees or taxes. “We’re looking at taking the motor vehicle sales tax and dedicating that revenue stream over to transportation.” TXDot is estimating a $3.3 billion shortfall in funds without this bill. Historically, however, the outlook is not as promising as some would like. In their 2015 Public Policy Statement report, HBA said “the gasoline tax has not been raised from its current 20 cents
per gallon since 1991.” Water and energy-related legislation is another infrastructure concern shared by Williamson County Association of REALTORS (WC REALTORS) and TAB. During the 2015 Session, legislators are focusing on eliminating court-enacted barriers to implementing the State Water Plan, a 50-year approach to balancing infrastructure improvements, public interests, property rights, and water rights. As far as energy infrastructure legislation is concerned, Norman describes an atmosphere in which market demand has dramatically driven up the cost of all forms of energy in recent years. While there is a movement for greener, cleaner, less expensive energy options, consumers just aren’t seeing these savings. Second on the agenda is proposed legislation that deals with appraisals, taxation, and property values. “A lot of people would like to do something about property taxes, specifically increase property exemptions from $15,000 to something higher,” says TAR’s Gonzalez. In their 2015 report, TAR is calling for a homestead exemption up to $45,000. And that’s just “one component of a comprehensive solution for property tax relief.” The state already requires school districts to provide a $15,000 exemption to every residence homestead for the purpose of ad valorem taxation. Gonzalez worries that if costs continue to rise, “many first-time homebuyers will be excluded from purchasing a home.” Gary Cocanougher, 2014 president of WC REALTORS and broker associate at ERA Colonial, says “reducing property taxes is always on the minds of constituents, but it is easier said than done.” That sentiment is especially true when
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Upcoming Events Wednesday, January 21 AYREP 2015 Kick Off Event The Market - 5:30 to 7:30 p.m. Tuesday, February 3 HBA Lakeway/Bee Cave Chapter Fore - 11:30 a.m. to 1 p.m. Thursday, February 5 WC REALTORS Super Bowl of Builders WC REALTORS Office - 10 to 3 p.m. WC REALTORS Tailgating Social WC REALTORS Office - 3 to 4 p.m. SAVE THE DATE May 5th: HBA MAX Awards Renaissance Austin Hotel More at www.myRealtyLine.com