Capitol Connection: April 4, 2014
HB 1254 Regarding HOA Fees, Including Transfer Fees, Passes Its Final Vote
CAR supported HB14-1254, Concerning a requirement to disclose fees charged to a unit owners’ association by a community association manager, passed its final hurdle as the House concurred with the Senate’s amendments and voted to repass HB-1254. The bill requires a licensed community association manager who provides services for a Homeowners’ Association (HOA), either directly or through employees or subcontractors, to fully disclose to the HOA all service fees and charges that will be billed either to the HOA or to unit ownersm, including transfer fees. The community association manager must disclose all fees and charges during contract negotiations with the executive board of an HOA, and annually thereafter. The Division of Real Estate in the Department of Regulatory Agencies (DORA) may regulate, investigate, and take disciplinary action against a manager for a violation of these provisions.
CAR has heard anecdotes that HOA boards are not always knowledgeable or pay attention to the fees and other charges management companies charge, including HOA transfer fees, during contract negotiations with management companies. We support this legislation because it is a disclosure bill to address concerns with surprise fees. The bill should make fee information more transparent so homeowners and their HOA boards are fully aware of not what only the fees are but what they are being used for.
HB 1001 Regarding a Tax Credit For Property Destroyed By A Natural Cause Passes House Third Reading
HB 14-1001, Concerning the Creation of an Income Tax Credit for a Taxpayer that owes Property Tax on Property that has been Destroyed by a Natural Cause, passed on Third Reading in the House this morning. It will now be sent to the Senate. Beginning in the 2013 income tax year, the bill establishes an income tax credit for a taxpayer that owns real or business personal property that was destroyed by a natural cause as determined by the county assessor of the county in which the property is located.
The amount of the credit is an amount equal to the taxpayer’s property tax liability for the destroyed property in the property tax year in which the natural cause occurred. A taxpayer is allowed to claim the credit only for the income tax year during which the property was destroyed.The bill requires the executive director of the department of revenue (department) to create a certification form to be used by a county assessor to certify to the department, at the request of a taxpayer, that the taxpayer’s property was destroyed by a natural cause and that the taxpayer is entitled to an income tax credit. The bill specifies the information that shall be included on the certification form for real or business personal property that was destroyed by a natural cause.
The department is required to make the certification form available to taxpayers and county assessors on the department’s web site and by any other means deemed necessary by the department. Before claiming an income tax credit, the bill requires a taxpayer to request that the county assessor in the county in which the destroyed property is located complete and sign a certification form for the destroyed property that is the basis of the income tax credit. The county assessor is required to complete and sign the certification form upon such request and the taxpayer is required to submit the completed and signed certification form to the department with the taxpayer’s income tax return.The amount of the credit allowed that exceeds the taxpayer’s income taxes due is refunded to the taxpayer.
CAR sees this as a positive way to help mitigate the damage caused by the multiple natural disasters that happened in our state in 2013. HB-1001 only covers destroyed property, so it is giving reprieve to these taxpayers for the year of 2013 on affected properties.
HB 1009 Concerning Changing the Wildfire Mitigation Deduction to Tax Credit Passed House Second Reading
CAR supported HB14-1009, Concerning Changing the Wildfire Mitigation Tax Deduction to the Wildfire Mitigation Tax Credit, passed the House on Second Reading this morning. The bill changes the wildfire mitigation income tax deduction to the wildfire mitigation income tax credit. An income tax deduction reduces a taxpayer’s taxable income, the amount to which the tax rate is applied. A tax credit reduces a taxpayer’s tax liability by taking a dollar-for-dollar reduction in what is owed by what the credit allows. The bill allows a landowner a credit of 50% of the costs incurred in performing wildfire mitigation measures, not to exceed $2,500. Any amount in excess of the landowner’s tax liability in the year the credit is first claimed may be carried forward to offset the landowner’s future tax liability for 5 years.
This bill also comes out of the Wildfire Matters Review Committee. Policy proposals that are focused on educating property owners and incentivizing activities that reduce the risk of wildfire are more likely to have a long term impact.
Join NAR’s First Ever TWITTER Call for Action!
NAR has launched its first Twitter CFA asking members to tweet their Senators about patent reform. Get in on the action now, and tweet your Senators to ask them to help put a curb on patent trolls. http://www2.realtoractioncenter.com/site/PageNavigator/rac_action.html It’s easy and quick, and you can make your voice heard in 140 characters!
Register Now for REALTOR® Party Convention
NAR’s Midyear Meetings have been renamed the “REALTOR® Party Convention and Trade Expo”. Registration—which is free for members—is now open for the REALTOR® Party Convention & Trade Expo May 12-17, 2014, in Washington, D.C. For registration or more details, click here.
Download the REALTOR® Action Center Mobile App
The REALTOR® Action Center mobile app is now available for download for the iPhone and DROID. Simply search for NAR Action Center in your respective app markets. This app is designed to help members Vote, Act and Invest on the go. It will help you increase your state and local Federal Call for Action participation rates, allow members a quick and efficient way to invest in RPAC, and provide you a way to track your REALTOR® Party activities and so much more.