Senate President Shares Insights on Real Estate Issues Scheduled for 2010 Session
Mon, 11/16/2009 - 12:17
By Kelly Lux
Real Estate News Utah Editor
Utah State Senate President Michael Waddoups shared some insight into real estate topics that will be addressed at the 2010 Utah Legislative Session during the Building Owners and Managers Association of Utah November luncheon.
“We are early enough in the system that we don’t know all of the issues, frankly,” Waddoups said. “But some of them had committee hearings during the summer in preparation for the Senate session and those are the ones I do know something about. “
Topics Waddoups believes will be on the Hill in 2010 include price disclosure legislation, sales tax increases and changes to homeownership association laws. Waddoups, an owner and manager of his own property management firm, encouraged interested parties to share their views — especially on these topics that specifically affect their industry.
One piece of legislation will propose that realtors be required to disclose the sale price of real estate once the title of the property is exchanged, Waddoups said. This legislation would increase public knowledge of the true value of property.
But Waddoups said the price disclosure legislation also has a negative aspect — giving more control to government. The Senate president also suggested that there is not much need for the price disclosure legislation since those in the real estate industry are generally “responsive in sharing necessary information” and give “comparables without giving the exact price of a home.”
Waddoups said the Utah State Legislature will also be looking at changes to sales tax. The taxpayers association plans to propose a broader sales tax base that would include sales tax on food, gas and services.
“The one that came up that really got me going this year was that they want to place a sales tax on services,” Waddoups commented.
Services such as haircuts, doctor’s visits, lawyer services and realtor fees would all be taxed under this legislation, Waddoups said. Realtors could be required to pay a tax on their commissions. The tax could even be applied toward the sale of a home: “Think of the sales tax revenue that could produce,” he said.
Waddoups told attendees that he doesn’t agree with the proposal and encouraged residents to advocate against the sales tax increase.
“I believe that is one of the worst things we could do in the legislature because I think it would dampen the economy severely,” Waddoups said. “Utah is poised as one of the first states to come out of the downturn/recession and taxing all of the services out there would put us right in the bottom. I think you would see fewer homes sold. I think you would see fewer people getting services.”
The Utah Legislature will also see a proposal to change the laws for condominiums, planned unit developments and cooperatives, Waddoups said. Politicians will be looking at insurance, judicial foreclosures and homeowners associations, he said.
Following Waddoups remarks, RBM Building Services held a charity cash auction, raising $5,000 for the BYU/UofU Food Fight.
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