Real(tor) influence
From a story in today's paper:
The N.C. Association of Realtors has spent nearly $500,000 to derail a proposed tax that, by the group's own estimates, would affect people who have never heard about it.Known as a transfer tax in legislative circles - or the N.C. Home Tax in the association's advertising materials - it would be paid by anyone selling property.
It became the focal point of disagreement that unraveled a complex deal on Medicaid and taxes between House and Senate budget negotiators last week. Many legislators, staff and lobbyists chalk that up to pressure brought by the Realtors.
"The reality is, the Realtors scuttled the agreement," said Rep. Paul Luebke , a Durham Democrat and one of about a dozen lead budget negotiators for his chamber.
Click here for the full story.
A few side notes:
- If $500,000 really all that much money?
Well, let's take a comparison from the field of politics. Would be Lieutenant Governor and current Sen. Walter Dalton boasted about raising $465,000 in the first part of this year. And that's to run a statewide campaign, not influence 170 legislators.
- There has been a persistent rumor/story going about the legislative building that the realtors have basically threatened legislators (or Senators ... depends on which version you hear) in swing districts with opposition in the next election if they back the tax. That rumor filtered up to the blogsphere in Fitsimon's blog.
Now, that would be a credible threat if - IF - the realtors made it. They have a history of running ads in campaigns and obviously have some money to spend.
But Rick Zechini, one of the Realtors' lobbyists, says that it's "absolutely not true."
For my part, I've heard this from staff and legislators alike, but not from any legislator who says that they, personally, have been the subject of such a claim.
Could they have telegraphed that message and I've just not run into someone willing to talk about it? Sure. But I don't think that one is ready for prime time (or newsprint) yet.
- It must have been a heck of a party. My favorite item on the realtors lobbying disclosure forms was a wing-ding they held at the Science museum across the street from the legislative building.
According to their form, the party back in April cost $18,561.31 and entertained "65 designated individuals," and three family members. I'll let you do the per-person cost on that.
Update: Tim Kent, executive VP with the realtors, says the more than 300 realtors attended the reception as well. That, he rightly notes, changes the per person cost somewhat.
- One of the boys over at Blue NC wrote to say he had started up a new blog dedicated to countermanding the realtors' influence. I haven't looked at it much yet, but you may want to check it out.
- The Realtors' transfer tax site is here.
- Previous writings on realtors and the influence of money and such here and here.
Comments (4)
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It’s a tax on current residents who already pay property and sales taxes in their communities. This tax increase will not lower local property or sales taxes, it will just increase government spending.
As a member of Americans for Prosperity-North Carolina, I urge you to TAKE ACTION TO hold the line on taxes and reject calls to enact higher transfer/real estate taxes. To contact your lawmakers follow the link below
http://capwiz.com/americansforprosperity/issues/alert/?alertid=9967676&type=ST&show_alert=1
Posted on July 3, 2007 10:22 AM
Transfer tax is an option that 7 counties have and that 6 counties use including Senator Basnight's own Dare County. All counties should have the options that other counties have. All counties should be able to decide the revenue structure that meets their needs.
Property values depend on economic growth and job growth that will not increase with crowded schools and lousy infrastructure. Taxing people on fixed income with increasing property tax every year is less desirable than paying the bill when the money is in play. No tax is accurate but I believe that a transfer tax is more accurate for some needs, like rapid growth, than property tax or sales tax.
Sales tax is volatile, while property tax is stable. A transfer tax provides a middle ground for some counties to mitigate the damaging effects of revenue peaks and valleys. This is not necessarily about more taxation but better taxation.
One thing that bothers me about the NC Association of Realtors is the apparent partnership with the Pope empire. They're using Civitas polls and talking points, AFP and JLF is shilling for them and NCAR blows off the needs of local governments with the classic right-wing TABOR baloney by claiming that local governments should limit spending to population growth and consumer inflation.
If the Realtors commissions were indexed to the CPI for the last 10 years they'd be a lot less than 6% today. For people who claim to be real estate professionals they sure seems to be oblivious to market conditions in the construction industry.
Posted on July 3, 2007 12:51 PM
That is unbelieveable that Dalton has $500K!
I wonder how many corporations gave to him while he was crafting the state budget.
It is only time before the Democrats around the state key in on him being the one signing up with Hugh Webster and Jim Forrester for the Marriage Defense bill. That bill had no chance of passing, but yet he jumped ship to be the only Dem to team up with Republicans.
http://www.ncga.state.nc.us/gascripts/BillLookUp/BillLookUp.pl?Session=2005&BillID=s8
Posted on July 3, 2007 7:32 PM
Regarding actual cases of the realtor lobby targeting specific legislators, here are two recent examples. Both Rep. Cully Tarleton of Ashe/Watauga Co. and Rep. Ty Harrell of Wake Co. were targeted this spring. Tarleton was targeted because he was a freshman who had been listening to his county manager's request for a transfer tax for Ashe Co. Tarleton had not actually introduced or voted for any such legislation at the time of the attack. Rep. Harrell was targeted simply because he is a freshman Democrat in a conservative district. The purpose of these attacks is to warn the attackees and their colleagues what could happen to them if they displease the realtors by actually representing the interests of their constituents. Allowing voters to VOTE on whether to levy a transfer tax to pay for growth needs in their communities is certainly in the interests of their constituents.
Countering a negative campaign by the well-heeled realtor lobby is extremely expensive. Damage control is difficult. And also very upsetting to those who are honestly trying to serve the interests of their constituents is the hatred expressed to them by those easily manipulated by sound bites and misinformation.
Past legislators who have been targeted by the realtor lobby include Rick Glazier of Cumberland, Lucy Allen of Halifax, Nash and Franklin, and Carolyn Justice of Pender, New Hanover counties.
Posted on July 8, 2007 1:27 PM