News & Observer | newsobserver.com | Tax fight strains Realtors group

Published: Jul 23, 2008 12:30 AM
Modified: Jul 23, 2008 05:52 AM

Tax fight strains Realtors group

Gulf growing over fees to aid campaign

 

Story Tools

WHAT'S A LAND TRANSFER TAX?

A year ago, state legislators allowed individual counties to ask voters to pass or reject land transfer taxes of up to 0.4 percent. Referendums in 20 counties have failed so far; at least one is still up for a vote.

A passed referendum would have required homeowners to pay a tax to the county after they sold their property.

Advertisements
A fight is developing between the N.C. Association of Realtors and some of its members over the group's campaign to stop land transfer tax referendums.

Last year, the group campaigned in 20 counties against the referendums, which would have required home sellers to pay a tax on the sale price of their home or land. This year, the group plans to continue its lobbying efforts. But to do so it needs money.

The association has assessed its 43,000 members a one-time $50 fee and increased annual membership dues by $25. Members were told to pay up or risk losing their membership, which is a requisite to being able to advertise clients' homes on the Multiple Listing Service.

"No membership, no listing, no business," said Bob Mulder, a broker with Umstead Realty in Raleigh.

The new fees, which the 160-member board of directors approved June 10, has brokers in Raleigh and Cary so upset that several have started a Web site and e-mail and phone campaigns in opposition.

"This is not about the money," Mulder said.

Instead, Mulder and others say they don't think membership dues should be used for political action.

"They're threatening us with our livelihood if we don't support their political agenda with our money," said David Spurling, a broker with BrokerHouse Realty in Raleigh. "That's just flat wrong."

Tim Kent, the association's executive vice president, blamed the growing discontent in the ranks on misinformation.

There's nothing new about the association's plan to collect and spend the money, Kent said. But, he added, "it's not surprising that in an organization that large, some have differing views."

The association has long promoted the right to own, transfer and use real property. Its political action committee, RPAC, uses members' voluntary contributions to support local, state and federal candidates who favor its positions.

For the past two decades, the association has also maintained another pot of money. The Issues Mobilization Fund collects a portion of members' annual dues to take a stand on issues such as school bond referendums or local sales tax initiatives. The issues fund has also been used to conduct research and educational campaigns.

The $10 million the association wants to raise from higher membership dues is earmarked for the issues fund.

Opponents of the fundraiser said they aren't against lobbying. Indeed, many have contributed to RPAC in the past. But they question whether money from the issues fund is spent properly.

Maybe, maybe not, said Gary Bartlett, director of the State Board of Elections, which regulates PACs.

State law limits PACs to voluntary contributions, Bartlett said. "You cannot coerce anybody to give money for political action."

But funding for issue-driven lobbying "gets to be a very gray zone," he said.

Court decisions over the past 30 years have established that lobbying groups can fund some issue-driven campaigns with membership fees, he said, as long as these campaigns don't mention the words "support" or "oppose."

"Each circumstance is different," Bartlett said. "This can get mighty convoluted."

A decision is made case by case and requires a complaint, which hasn't been filed.

No comments have been posted for this story. Log in to be the first to comment.


The News & Observer is pleased to be able to offer its users the opportunity to make comments and hold conversations online. However, the interactive nature of the internet makes it impracticable for our staff to monitor each and every posting.

Since The News & Observer does not control user submitted statements, we cannot promise that readers will not occasionally find offensive or inaccurate comments posted on our website. In addition, we remind anyone interested in making an online comment that responsibility for statements posted lies with the person submitting the comment, not The News and Observer.

If you find a comment offensive, clicking on the exclamation icon will flag the comment for review by the administrators, we are counting on the good judgment of all our readers to help us.

Hosting Partners of
newsobserver.com

A subsidiary of The McClatchy Company