3. Property appraisal is a thorny issue at best and promises to be the subject of much debate for a very long time. Any reform will directly affect your business–the only question is how. Recently we were able to get three appraisal reform propositions onto the state ballot and passed in a statewide constitutional election. Propositions 2, 3, and 5 improve the property appraisal process, giving homeowners a fairer shake with our annual property evaluations for tax purposes.

4. Not every association manages to get constitutional amendments on the ballot, much less passed. We’ve had six in the last three years, including Proposition 6 from two years ago, exempting Texas REALTORS® from an unfair mixed-use vehicle tax. We’ve made progress but we have a long way to go toward making Texas a better place for private-property owners.

6. In Texas, we have a stable real estate market. We’re not prone to wild fluctuations like the left and right coasts of the country. And our foreclosure ranking is way down the list compared to other states. One reason is our consumer-friendly home equity lending law, which Texas R EALTORS ® championed and passed back in 1997. It has strong consumer protections, like an 80% loan-to-value limit–none of that crazy borrowing 125% of the home’s value that you see on national TV.

7. Every time the legislature meets in Texas, lobbyists for large national lenders try to convince our lawmakers to amend our home equity law. These efforts, if successful, would dilute the hard-fought consumer protections currently in place, result in more foreclosures, and lower property values.

9. Every time our state is faced with a deficit, some Texas lawmakers look to the real estate industry to make up the difference. This last session, more than 11 attempts were made to pass a real estate transfer tax. These transfer taxes raise the cost of purchasing homes, pricing some buyers out of the market.

11. The ugly truth about transfer taxes is that they are proposed every year. That’s because they are seen as an easy solution to boost government revenue. But transfer taxes raise the cost of purchasing homes. Some buyers are priced out of the market, meaning no commission at all. Others pressure you to cover some of their high costs by lowering your commission.

13. Another one that some legislators consider when there is a deficit is a tax on services. The last time was in 2003. It would extend the state sales tax to all services listed on HUD-1, including your commissions. And now, it’s looking like we’ll be faced with a deficit again during the next legislative session.

15. During the 80th Texas Legislature, we prevailed in exempting your personal auto from ad-valorem taxation. And with overwhelming passage of Proposition 6 in the November 2007 constitutional election, you’ll never have to worry about this unfair tax again.

17. Mixed-use vehicle tax Some county tax assessor-collectors were targeting Texas R EALTORS ® for an ad-valorem (property) tax on personal vehicles. If left unchecked, this new tax could’ve spread statewide to all Texas R EALTORS ® and other independent contractors. Vehicle value $ X 0.0275 = $

18. Professional fees We opposed a legislative proposal to double the $400 fee that real estate brokers pay for their two-year license in Texas. Your savings: $400.00

19. Tax on services We defeated another proposal to extend the state sales tax to professional services. Had it passed, your commissions would’ve been taxed at 8.25%. Gross commission value $ X 0.0825 = $

20. Transfer tax A tax on the transfer of real property would discourage homeownership in Texas. According to a leading economist, that translates into a 7% reduction in sales volume. That’s why we’ve fought hard to stop repeated attempts to pass this insidious tax. Sales volume value $ X 0.07 X Take-home percentage = $ Example: $2,000,000 (sales volume value) X 0.07 = $140,000 (sales volume reduction) $140,000 (reduction in sales) X (your take-home percentage) = $ (your savings)

21. Now add it all up Mixed-use vehicle tax $ Professional fees $ 400.00 Tax on services $ Transfer tax $ Your total savings: $