What we have done

Many of you are aware that Realtors are among the largest and therefore most powerful lobbies in the nation. Of course our primary goal is to ensure that each of us retains our private property rights. Even here, in the Gem State, your rights are often threatened sometimes unbeknownst to you. Our Idaho Association of Realtors (IAR) employs a full-time lobbyist who is on "the hill" as much as most legislators, making sure the real estate profession's opinions are heard.

Of note, last year we successfully argued against transfer fees and were able to affect new legislation in the state that prohibits those fees from being attached to a property. For those of you unaware, these fees have been charged in other states and attempts made here, that assess a transfer fee to sell your property within a particular subdivision. In states where they have not been prevented, a transfer fee is attached to the lot where you build your home. This lot then, is re-assessed a fee each time it is sold and is for the sole benefit of the developer. Considering that historically homes resell every five years or so, the developer would collect a fee on each sale or transfer of the property. Now, that cannot happen legally in Idaho.

This year in the legislative session we were able to influence a bill that protects those of you who may be living in a subdivision or operating a business created under a Conditional Use Permit. In January, the Idaho Supreme Court handed down a ruling that these permits were largely issued improperly and therefore were null and void. This ruling subjected hundreds of users of these permits obtained since 1975 to liability. New applicants would have to fit strictly within language of existing ordinances or the ordinances would have to be rewritten. Every local jurisdiction would have had to undertake the monumental task of rewriting land use planning ordinances stalling new business development in the process.

IAR worked with a number of business groups, land use attorneys, county and city representatives to pass HB 691 which will allow the process to continue to function as it already has, and includes an emergency clause retroactively applying to all existing Conditional Use Permits. This will save taxpayers a undetermined fortune in staff wages by avoiding rewrites of these codes.

Once again, we were able to muster support to reject legislation brought by Shirley Ringo, the Democrat Representative from Moscow, that would have added a sales tax to services currently exempt from those taxes. This is a fight we are used to since it is brought up before each session annually. Not only would this tax apply to real estate commissions, which we already pay income tax on, but would also apply to construction labor, and construction services which would ultimately result in an increase in the price of home purchases through sales taxes added to each stage of construction.

Also this year, IAR worked with a group called buildidaho.org to provide relief for developers whose property taxes would increase when infrastructure was added to developing land. Typically, a county will assess each individual lot, sold or not, when a developer adds sewer and water lines and roads to a subdivision. Under the resulting legislation, HB 519, these site improvements will be classified as business inventory. The land would then remain taxed at the platted value until lots are sold or building begins. This keeps the costs down for developers and ultimately for those who purchase those lots or the homes built upon them. This will also encourage developers to avoid delaying their infrastructure investments so that lots are ready to build when the market dictates, narrowing delay time for construction. This bill is retroactive to Jan. 1, 2012, but developers must hurry to apply for exemptions for this year.

Not only are Realtors actively conspicuous when we help you buy or sell property - we are inconspicuously active as we lobby to protect you from higher taxes in those transactions. Next month an estimated 15,000 Realtors will be very conspicuous as we rally at the Washington Monument to draw attention to the value of home ownership in this country and the importance of more government cooperation to aid our recovery.

Trust an expert... call a Realtor. Call your Realtor or visit www.cdarealtors.com to search properties on the Multiple Listing Service or to find a Realtor member who will represent your best interests.

Kim Cooper is a real estate broker and the spokesman for the Coeur d'Alene Association of Realtors. Kim and the association invite your feedback and input for this column. You may contact them by writing to the Coeur d'Alene Association of Realtors, 409 W. Neider, Coeur d'Alene, ID 83815 or by calling (208) 667-0664.