Senate Pulls Dirty Trick!
Tries to Punish C.A.R. for Opposing Recording Tax by Holding C.A.R.’s Tax Relief Bill Hostage
Call Your Senator NOW! Urge a NO Vote on Recording Tax
In a surprise move last week, the Senate Appropriations Committee linked C.A.R SPONSORED bill, SB 30, which provides tax relief to those who are selling a home in a short sale to SB 391, a C.A.R.-opposed bill that creates a recording tax, using a shameful political maneuver to force C.A.R. to support the recording tax. As now linked, SB 30 can only become law if SB 391 becomes law. Once SB 391 is defeated, the link in SB 30 can be removed. PLEASE ACT NOW. THE VOTE COULD BE AS SOON AS NOON TUESDAY!!!
REALTORS® and the public should be OUTRAGED that distressed homeowners are being held hostage by Senate Leadership.
CALL YOUR SENATOR TODAY
Ask him or her to stand with REALTORS® and families and
VOTE NO ON SB 391!
CALL 1-800-969-3310Enter 200005264 to be connected
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Here are detailed background and talking points on both bills.
C.A.R. is OPPOSING SB 391 (DeSaulnier) which imposes a recording TAX to generate funds for affordable housing programs. SB 391 creates a $75 per document recording TAX to fund the affordable housing trust. C.A.R. is opposing this measure because it unfairly adds to the cost of recording real estate documents. C.A.R. is an aggressive advocate for affordable housing, but believes it is bad policy to fund affordable housing at the expense of homeowners who need to record real estate documents. The real issue is that this TAX is imposed only on real estate document recordings. Affordable housing programs should be funded by the broadest base possible of California’s citizens.
C.A.R. opposed the bill’s predecessor, SB 1220, last year until the bill was amended to exempt recordings that were part of a sales transaction. Afterward, C.A.R. supported the measure, but it was defeated. Don’t be misled by allegations that C.A.R. “changed its position” on SB 391. C.A.R.’s Board of Directors considered SB 391 for the first time in May of this year; prior to that, C.A.R. did not take a position on SB 391. The sponsors were advised of this process well before the bill was introduced. In May, the Board of Directors voted to oppose SB 391.
C.A.R. is opposing SB 391 because:
- SB 391 unfairly targets property owners who need to record real estate documents to pay for affordable housing programs. Affordable housing is an issue of broad social concern. While there may be a need for affordable housing funds, it is unfair to require only those individuals recording real estate documents to be the sources of that funding.
- SB 391 is a recording TAX. While it may not apply to sale transactions, it still applies anytime a homeowner needs to record a document (e.g., refinancing, transferring into or out of a trust, liens, quit claim deeds, etc.).
- SB 391 provides no guidelines; it doesn’t prioritize affordable housing needs and requires little oversight. There is nothing in the bill that specifies how funds should be awarded and it provides little oversight as to the best uses of the funds. While it contains an audit requirement, that requirement doesn’t even kick in until the end of the program’s second year, when $1 billion could have already been distributed. And, it’s “geographic” approach to distributing the funds doesn’t ensure the neediest Californians benefit from the program.
- While C.A.R. aggressively supports the creation of homeownership opportunities, SB 391 is clearly not the way to achieve that goal.