Welcome to another edition of C.A.R.’s Networker. Now that the state Legislature is back in session, you wil be receiving this newsletter just about every two weeks. Please feel free to share its contents with your colleagues.
Federal Proposal to Reduce Mortgage Interest Deducibility
The Obama Administration has recommended, as part of its budget proposal, that families earning more than $250,000 year have the amount of mortgage interest they can deduct on their federal tax returns be reduced. NAR and C.A.R. are steadfastly opposed to any attempt to modify the mortgage interest deduction and both are working to develop plans to ensure that the proposal is not included in the budget eventually passed by Congress. Please note that while the administration has proposed these changes, they are not yet in any legislation. Please stay tuned for a future Call-for-Action.
National Banks Barred from Engaging in Real Estate – Big Win for REALTORS®
Last week President Barack Obama signed the Omnibus Appropriations Bill into law. A provision of this law permanently bans banks and other financial institutions from engaging in the practice of selling real estate by preventing the Treasury Department and Federal Reserve from creating rules that would allow these activities.
This has been a long and hard fought battle that began eight years ago when the Bush Administration sought to expand the authority of national banks to engage in real estate development and other real estate related practices. This expansion would have ultimately led to unlicensed national bank employees being able to engage in the same practices that you are required by state law to be licensed fo
This is a huge win for REALTORS®! Thank you to all of you who fought hard over the past several years to ensure this victory.
FTB Reverses Recently Adopted Guideline on Withholding
On February 9th, the state Franchise Tax Board issued new guidelines that would have required residential property managers representing out-of-state clients to withhold 7% of rents collected and forward them to the FTB quarterly. Additionally, the FTB made this guideline retroactive to cover rents collected in 2008 as well. C.A.R. and other property management trade groups objected strenuously to this new rule
C.A.R. was deeply troubled by the lack of advance public notice and by the possible conflict the new guideline created with Business & Professions Code Section 10145 which governs the administration of trust fund accounts by real estate brokers.
After considerable outcry from the property management community, the FTB has agreed to delay the implementation of the new guideline until 2010. In the meantime, C.A.R. will be hosting a meeting between representatives of the DRE and FTB to make certain that any issues arising from changes in how trust accounts are managed are fully addressed by the FTB.
C.A.R.’S Candidate Campaign Training is Open for Business:
APPLICATION DEADLINE IS FRIDAY, May 8, 2009!
C.A.R. is now accepting applications for the C.A.R. Candidate Campaign Training for REALTORS®. The Campaign Training is scheduled to be held in Sacramento on Monday, September 14, and Tuesday, September 15, 2009. For more information click on: http://www.car.org/governmentalaffairs/crepacborpac/campaignshcool/
For more information about C.A.R.’s Legislative Liaison program, please contact DeAnn Kerr at [email protected].