There’s an old political saying that if you’re not at the table you’ll be on the menu. That’s why seeing some 600 REALTORS® streaming into the capitol in Madison last month was so heartening. They were participating in a highly effective WRA traditional of being at the table with lawmakers to discuss key real estate issues before decisions are made – better known as REALTOR® and Government Day.
For over three decades, REALTORS® from every corner of the state have taken a day to travel to Madison, listen to top state officials and legislative leaders, be briefed on pending real estate related issues, then take to the capitol to meet with their individual lawmakers and staff to discuss issues of importance to our industry and the homeowners and property owners we represent. Given the political turmoil and tough budget issues being debated in Madison today, making the trek to capitol this year was both exciting and challenging.
Attendees this year heard directly from key state leaders about enormously consequential issues including the pending state and federal budgets, which both have a direct and indirect, immediate and long-term, impact our business and our state. These leaders included Governor Scott Walker, Chairman of the House Budget Committee Congressman Paul Ryan, Assembly Speaker Republican Jeff Fitzgerald and Assembly Democratic Leader Peter Barca.
To all those who made the trip, thank you! The personal, constituent lobbying you conducted, along with the information you distributed and discussed, will help lawmakers understand the importance of our issues, industry and association.
To those of you who didn’t or couldn’t make the trip – thank those who did. Their commitment will help your business.
Our issues this year focused on the controversial state budget currently being debated in the state capitol, and several key provisions that directly impact real estate professionals and property owners in Wisconsin. Here’s a summary of the issues we discussed:
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Keep housing impact statements. The pending state budget contains a provision to eliminate an existing requirement that the Department of Commerce prepare a report regarding the effect of any proposed administrative rule on housing before the rule is sent to the legislature. The WRA is asking lawmakers to remove this provision and thus keep current law. We support this law because Wisconsin’s economy is dependent on a strong housing and real estate industry and lawmakers need to know the impact of proposed rules on this vital sector of our economy.
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Eliminate the farmland conversion penalty. The state budget contains a provision repealing the current penalty assessed on farmers who rezone their property. The WRA supports this repeal because current law decreases the value of farmland; increases the cost of development; and fails to recognize the important balance needed between protecting farmland and providing other types of land uses, namely residential and commercial development.
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Creation of a new Real Estate Examining Board. The state budget proposes to replace the existing Real Estate Board in the Department of Regulation and Licensing, with a new Real Estate “Examining” Board. The WRA supports this change because the new board will assume many important duties currently vested with the Department Secretary and will thus improve the regulation of licensees in a more effective and responsive manner, while continuing to ensure consumers are fully protected.
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Maintaining and tightening property tax levy limits. The pending state budget bill proposes to cap property tax levies in Wisconsin to protect property owners from potentially significant tax increases resulting from cuts in state aids to local governments. While these limits will create difficult short term revenue decreases for schools, counties and municipalities, they are necessary to protect housing affordability and the societal benefits of homeownership and thus are supported by the WRA.
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Creating a new vacant land condition report. This separate, non-budget bill would require sellers of vacant land to complete a vacant land condition report at the time of sale, similar to the current form required by sellers of 1-4 family dwellings. The WRA supports this legislation because sellers are in the best position to know about any adverse conditions, obligations, penalties or programs assigned to the property. Under the proposed law, if a seller fails to make the necessary disclosures, a buyer may have the ability to rescind an Offer or may sue the seller, depending upon the nature of the disclosure.
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Extending the deadline to register piers. Lawmakers are currently considering bipartisan legislation that would extend by 12 months, the deadline for registering piers with the DNR. (Assembly Bill 73 and Senate Bill 59.) The WRA supports this legislation because the pier registration deadline has recently expired and thousands of existing piers that were not registered could be forced to comply with new standards meant to apply only to new piers. This could result in piers being forced to downsize or even be removed.
It’s never too early to start making your plans to attend next year’s REALTOR® and Government Day. The event will be held once again in Madison on March 28, 2012. The table is being set as we speak.
* Author’s note: Since Government Day, repeal of the farmland conversion penalty has passed an important committee vote and the pier registration bill has passed the full legislature.*
Michael Theo is Senior Vice President of Legal and Public Affairs for the WRA.