KAR’s Top Legislative Priorities

HB 78 – Sales Tax on Services (OPPOSE)
Applying the sales tax to real estate services is likely to reduce the demand for housing by effectively increasing the cost of purchasing a home.  The total impact is based on several reinforcing effects:
· Increased closing costs on the transfer of existing residential and nonresidential property
· Increased cost of operating a brokerage business
· Increased cost of new single family and multifamily housing
· A 6% sales tax could have the same impact as raising the mortgage rate by .75%
· This is a regressive tax and has the highest impact on those who can least afford it

HB 112 – Local Taxation of Businesses (SUPPORT)
HB 112 will exempt any proceeds derived by a business entity from the transfer or sale of business property from the definition of "gross receipts" and "net profit" for purposes of local net profits, gross receipts, and occupational license taxes.  This bill is a clean-up bill that addresses issues from a bill passed in 2003.

HB 353 – Centralized Revenue Collection (SUPPORT)
This bill will develop and administer a Web-based system for the centralized reporting and collection of local occupational license taxes and fees. The system must have the ability to:
· accommodate the payment and reporting of license and occupational taxes imposed against businesses on business income; and occupational taxes withheld by employers from wages paid to employees
· Report and pay all local/county occupational license taxes and fees in one transaction with automatic distribution of payment to each local/county government entity

IMPORTANT (Bills KAR will monitor closely)

SB 66 – Regulation of Appraisal Management Companies (SUPPORT with amendment)
Senate Bill 66 defines terms related to the regulation and registration of real estate appraisal management companies.  KAR recommends the language of Section 5(2)b be stricken.  This section would not allow an AMC to hire, employ, or in any way contract with or pay a real estate broker to perform a broker's price opinion or comparative market analysis to be used in lieu of a requested appraisal.  KAR is opposed to this bill unless the above changes are made.

SB 96 – Real Estate Licensure sex crimes (SUPPORT)
SB 96 relates to real estate licensure and would deny licensure for applicants convicted of a sex crime and would revoke the license of person convicted of a sex crime.

HB 348 – Comprehensive Environmental Status Reviews (OPPOSE)
HB 348 would require a “Comprehensive Environmental Status Review” where a planning body is creating or considering a comprehensive plan, a plan amendment, a land use or zoning regulation, a subdivision regulation, a public improvements program, etc. The bill includes the following language, “The comprehensive plan shall not authorize development in a location or manner that causes or contributes to violations of the general laws prohibiting air, land, and water pollution.”  The requirements of this measure are extensive and include reviews of air, land and water pollution, among other issues. Overall, this bill, if enacted, has the potential to at least delay and ultimately deny any new development.

HB 356 – KREC Bill / Real Estate Brokers and Salesmen (SUPPORT)
This is an administrative bill that will:
· Require annual license renewal on a date specified by KREC through administrative regulations
· Increase from 50 to 100 miles the radius outside of which a principal broker is required to have a broker managing a branch office
· Require licensees to provide phone numbers and emails during annual renewal
· Increase from 60 to 120 days after the end of the fiscal year the time frame within the commission shall make public income and expenses from the real estate education, research, and recovery fund.

HB 357 – KREC Bill / Real Estate Compensation (this bill has been WITHDRAWN)
· This bill will exempt employees of builders or developers who receive bonuses for sale of property and employees of property managers who receive bonuses for property management from the definition of "regular employee"
· This bill also expands forms of compensation that would require a seller to issue a seller's disclosure of conditions form.

HB 394 – New Home Tax Credit (SUPPORT)
This bill will allow qualified buyers of new homes to utilize the new home state tax credit of up to $5,000 in conjunction with the Federal First Time Home Buyer Tax Credit of $8,000 for first time home buyers and $6,500 for repeat home buyers.

SIGNIFICANT (Bills KAR will monitor)

HB 123 – Contracts
HB 123 will require consumer contracts with an automatic renewal clause have the clause conspicuously displayed in the contract and require that notice of an upcoming renewal period be sent to the consumer. 

HB 219 – Crimes and Punishments (Auction Escrow Account)
HB 219 relates to theft by deception to include the issuance of a check with knowledge that it will not be honored by the drawee for the lease, rent, or purchase of property, or for payment to an auction escrow account.

HB 362 – Energy Star Tax Credit
HB 362 expands the ENERGY STAR Tax Credit, making it available to S-Corporations, Pass-Through’s, LLC’s and LLP’s.

HB 391 – Condominiums
HB 391 relates to condominiums and the Uniform Condominium Act.  This bill defines relevant terms, provides requirements and procedures for establishment of associations and for the conduct of business.  This bill also establishes rights and responsibilities of unit owners, provides criteria related to the sale of units by unit owners and collection of delinquent fees and assessments.

HB 454 – Utility Lien
This bill would authorize utilities that provide gas, electric, sewer or water service to retail business customers to impose a lien on their property for any outstanding charges and fees when utility bill is in arrears in excess of $50,000.  This lien would take priority over a mortgage, contract lien, or bona fide conveyance under specific conditions.

HB 465 – Residential Property
This bill will require a creditor to register vacant residential property with the local government in which the property is located and will create a penalty for failure to comply.

HB 494 – Radon Professionals
This bill is relating to radon professionals and making an appropriation thereof.  This bill would require certification and regulation of radon measurement professionals, mitigation professionals, and radon laboratories as well as establish the Kentucky Board of Radon Professionals and its appointment and meeting procedures.

HB 496 – Judgment Liens
This bill is relating to judgment liens on real property to provide that where the real property is under joint ownership, the lien shall not extend beyond the interest held by the debtor.

GENERAL (Bills listed for informational purposes)

HB 298 – Collection of Property Taxes
This bill is intended to clean up some processes that were established in last year's HB 262.  This all relates to stabilizing the 3rd party purchase of delinquent tax bills.

To view these bills and the bills listed above, go to www.lrc.ky.gov.

To view HB530 regarding NOLs, click here.