UPDATE FROM KCRAR GOVERNEMENT AFFAIRS

Funkhouser says no to police funding cuts, property tax increase Cauthen’s budget proposal also followed up on a consultant’s suggestion that the city adjust its property tax to cover capital improvements bond debt. The increase would raise $8 million annually and cost the owner of a $100,000 house about $25 more per year.Bill Tracker:

Economic Development/Job Creation*
HB 191 – JOB DEVELOPMENT – Flook, Tim
Removes the cap on the current Quality Jobs program and establishes various job creating tax credits.
Position: SUPPORT
Update: 2/12- SCS Reported Do Pass

SB45- Creates a tax credit for equity investments in technology-based early stage Missouri companies and removes the annual limit on tax credit issuance for the Quality Jobs Act.
The Senate’s Economic Development bill, similar to HB 191 (above). Both bills are moving very quickly through the legislative process, as economic development and job creation are the top priority in Jefferson City this year.
Position: SUPPORT
Update: 3/2 Senate Informal Calendar for Perfection
(approval by Senate)

*The Good:
Both the House and Senate Economic Development bills now contain a $1,000 tax credit (capped at $4 Million) for the purchase of a new or existing home from the effective date of the bill to the end of the year.
The Bad:
Both bills also contain language that reduces the value of the Historic Preservation Tax Credit from 25% of eligible costs to 20%, which we oppose

Recording Fee Increases
HB 279 – County Recording Fees
This bill increases from $3 to $10 the fee charged for certain recorded documents pertaining to real property by the county recorder of deeds. Nine dollars of the fee is designated for the Missouri Housing Trust Fund, and $1 is designated for the county recorder for use at his or her discretion.
Position: OPPOSE
Update: No Further Action Scheduled
SB 268 – Modifies provisions relating to the Missouri Housing Trust Fund

Elimination of Development Tax Credits*
SB142- Requires mandatory review and sunset of certain tax credit programs
SB121- Institutes a two-year moratorium on all state tax credits
Multiple bills have been filed restricting or eliminating many statewide tax credit programs, including development tax credits and historic tax credits.
Position: OPPOSE
Update: 2/19- Hearing Scheduled before S
Governmental Accountability and Fiscal
Oversight Committee

*The future of many of the MO Tax Credit programs, including Historic Tax Credits, is being considered in conjunction with the Economic Development bills (above).

Landlord/Tenant Relations
HB181 – LANDLORD-TENANT ACTIONS – Stevenson, Bryan P.
HB315 – LANDLORD REMOVAL OF TENANT PROPERTY – Kratky, Michele
HB207 – DELINQUENT UTILITY PAYMENTS – McGhee, Mike
Multiple bills pertaining to landlords rights when removing tenants from their properties, exempting landlords from liability for such actions, and addressing delinquent utility payments in rental units.
Position: SUPPORT
Update: All three bills were heard in House
Committees in February. No further action scheduled.

KANSAS UPDATE FROM KCRAR GOVERNMENT AFFAIRS

The Legislature passed the recission budget and the Governor signed it. No funds were swept out of the KCREC fee funds.

Private Transfer Fee - HB2092 was heard on February 9th in the House Financial Institutions Committee and was moved to the full house. The House voted 123 to 2 in favor of the bill. This legislation was referred to the Senate Financial Institutions and Insurance Committee. This legislation prohibits private transfer fees in real estate transactions. (Support)

Multiple Pieces of Legislation Curbing Annexation were heard and passed out of the House Local Government Committee (HB2029, HB2030, HB2031 and HB2032). hearings have not been heard on the House floor and are expected to be scheduled for next week. Numerous pieces of legislation seeking to place new limitations on annexation by cities were introduced. (Oppose)

Home Inspector Bill - HB2067. Minor revisions are proposed from the Home Inspector Board to the legislation passed in 2008. The bill passed out of the House Commerce and Labor Committee. (Support) The full House heard the bill and passed 97 to 26. The Senate Commerce Committee will now hear the bill.

Prop K Bill - HB 2150. Hearings were held this week in House Taxation Committee. This legislation would replace the State’s current tax appraisal system. (Monitor)

Affiliated Business Legislation – HB2041 had a hearing on February 12th in the House Insurance Committee but it did not have the votes to get it out of committee. This legislation will eliminate the statutory cap on the ownership of affiliated business arrangements by real estate brokerages. (Support)

Historic Environs Review Legislation – HB2083 introduced in the House Local Government Committee and had a hearing on February 12th. This has not gotten out of committee yet. This legislation was proposed by KAR and would eliminate the historic environs review requirement. (Support)

KREC Fee Funds – SB23 and HB2022. Governor’s Proposal to sweep $830,000 from the Real Estate Fee Fund and the Real Estate Recovery Fund. According to the Kansas Real Estate Commission, these fund sweeps would prevent them from making a critical upgrade to our licensing database, might lead to an increase in licensing fees in 2011 and would deplete the real estate recovery fund. No final decision has been made on the budget for 2009 so we are actively monitoring these bills and any budget related legislation. (Oppose)