Southern Maryland Association Of Realtors

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Public Policy Statement

Click here to download a copy of the SMAR Public Policy and Mission Statement.

The mission of the Southern Maryland Association of REALTORS® is to maintain a financially viable association offering support, services and training for its members; to provide community outreach; to foster a proactive relationship with local and state legislative leaders and to be the leading advocate of the real estate industry, private property rights and the issues that most affect the members' ability to serve the public with competency, integrity, and professionalism.

In support of this mission, the members of the SMAR Legislative Committee developed a guiding philosophy on seven key issues that affect the communities where Southern Maryland REALTORS® live and work. This guiding philosophy provides the foundation for the background rationale and position statements that were promulgated during an open process of Committee dialogue, debate, and finally, consensus of opinion. This document is to be viewed as dynamic and one intended to change, grow, and develop in sync with our mission as well as our community and business environments.

Southern Maryland REALTOR® Issues

Guiding Philosophy

REALTORS® are dedicated, within the framework of a democratic free enterprise system to support and protect property rights and to place home ownership within reach of all who desire it. The widespread ownership of real property positively impacts neighborhoods, communities, and Southern Maryland’s economic stability.

REALTORS® support growth policies which encourage new and diverse housing opportunities, economic development and the necessary education, transportation, and communications infrastructure, while protecting the quality of life that has made Southern Maryland a desirable place to live.

REALTORS® are committed to the proposition that all persons, regardless of race, color, religion, national origin, familial status, disability, gender, sexual orientation, or socio-economic status have a right to own real property. The “dream of homeownership” should be an achievable goal that is affordable for all.

REALTORS® support Fair Housing law. We believe equal opportunity in housing can best be achieved not only through observance of the law but through education, and mutual cooperation of the real estate industry and the public in a free and open housing market.

REALTORS® believe that the costs of government should be paid from the appropriation of broad-based general tax revenues.

REALTORS® support generation of broad-based general tax revenues to meet the cost of necessary government services to provide for individual and community needs which cannot be provided by individuals or private organizations.

REALTORS® oppose imposition of narrow-focused fees and taxes such as, impact fees, excise taxes, real estate transaction taxes, department-generated user fees, and other 'hidden taxes' that increase the cost of housing and reduce opportunities for homeownership.

Growth Policies and Economic Development

Background

Economic growth and development is critical to the long-term health and vibrancy of Southern Maryland. A diversity of economic activity will create jobs and ensure the future growth of Southern Maryland. The three Boards of County Commissioners must consistently pursue policies, which will attract the economic opportunities necessary to expand our tax base, provide housing choices and employment, and deliver necessary services. REALTORS® are committed to the proposition that economic growth can take place while simultaneously protecting property rights, the environment and the integrity of a county’s comprehensive plan.

Developers include public amenities as a matter of course in building new projects. Imposing impact fees unfairly shifts the burden of financing public facilities, used by the public at-large, to one segment of the community. In addition, these fees are passed on to homebuyers forcing them to pay twice for public facilities -- first through increased home prices, and then through taxes.

REALTORS® Position

• REALTORS® advocate streamlining the permitting process to reduce the time and administrative hurdles businesses face when trying to become established in Southern Maryland.
• REALTORS® support the construction of a transportation infrastructure adequate to serve the needs of our commuter population, as well as those who travel to and within the Southern Maryland region.
• REALTORS® are committed to the preservation of property rights and believe that government eminent domain for the taking of property should be exercised conservatively with just compensation for affected property owners. The use of eminent domain powers should be exercised rarely and only where there is a demonstrated and overwhelming need that will benefit the entire community.
• REALTORS® strongly oppose the use of the broadly interpreted powers of eminent domain found in Kelo vs. City of New London as a tool to enhance economic development.
• REALTORS® believe the Southern Maryland Boards of County Commissioners should fund from their existing property and income tax bases the necessary public improvements such as schools, water and sewer, transportation improvements, and other public facilities at a rate to keep up with the growth in population.
• REALTORS® oppose impact fees, development excise taxes, and other “nuisance” taxes, which discourage development of new homes and businesses.
• REALTORS® support a sensible “Live Where You Work” economic development program that encourages the growth of small businesses, that attracts large businesses, and the public sector to Southern Maryland.
• REALTORS® support the relocation of Federal Government agencies and activities to Southern Maryland as this will create regional centers for local employment. The decentralization of the Federal Government to Southern Maryland will ease commuter traffic congestion, and reduce commuter drive times to and from their place of employment resulting in an overall improvement to the region’s quality of life.
• REALTORS® support the improvement and expansion of broadband communications in Southern Maryland. A state-of-the-art communications infrastructure is an important component of a modern economic development plan. A widely available broadband communications network in Southern Maryland is no longer an optional accessory in a developing business environment.

Closing Costs

Background

The State of Maryland imposes some of the highest closing costs in the nation. The burden of costs such as property tax escrows, real estate transfer taxes and recordation fees have had a negative impact on the expansion of development, homeownership and economic growth.

High closing costs discourage housing opportunities for first-time homebuyers and others from making their home in our community. As a result, Southern Maryland loses the opportunity to attract new business investment to respond to the increased demand for goods and services. Charles, St. Mary’s, and Calvert Counties need to attract and retain the talents of people who can expand their tax bases.

Reducing closing costs will eliminate a major hurdle faced by homebuyers and will make Southern Maryland more competitive vis á vis surrounding jurisdictions. New homeowners stimulate demand for new goods and services thereby fueling economic expansion.

REALTORS® Position

• REALTORS® support a concerted effort to reduce barriers to home ownership.
• REALTORS® oppose all efforts to impose or increase transfer and recordation taxes as a means to increase general county revenues, and support the elimination of taxes on the transfer of property.
• REALTORS® support the establishment of a regional closing cost assistance program as an important avenue for moderate-income people and first-time homebuyers to purchase a home.

Impact Fees and Development Excise Taxes

Background

Economic vitality is critical to sustaining Southern Maryland. A healthy housing market builds strong communities, enhances the tax base, and creates new employment opportunities. The imposition of impact fees and development excise taxes discourages new businesses from locating in Southern Maryland, existing businesses from expanding here, and inflates the cost of housing.

New development ultimately increases the region’s tax base, which pays for additional public services required by the growth, therefore paying for itself. The requirement of additional initial outlays by developers is passed on to buyers. This limits housing affordability and increases the cost of housing.

Impact fees and development excise taxes place the burden for funding public facilities on only one industry; however, the entire county benefits from these improvements. Good public policy allocates the financial responsibility for public facilities equitably.

Impact fees, excise, sales, and property taxes are imposed on building materials for home construction and lot development. The builder passes these costs on to the homebuyer. This further increases the cost of housing.

REALTORS® Position

• REALTORS® oppose both impact fees, development excise taxes and the concept of system development charges and any efforts to increase them.
• REALTORS® are committed to working with County officials to identify alternate means of financing additional public facilities such as tax credits for providing certain public improvements.

Transportation Investment

Background

Expansion of our capacity to transport people represents an important investment in the future growth of our economy and the community-at-large in Southern Maryland. By investing in roads and public transportation, the quality of life is maintained and enhanced and economic potential is increased with the ability to move people efficiently to shopping, work, and schools. The failure of transportation systems to meet the ever-growing demands placed on it has reached a critical point. Failure to make improvements to the transportation system inhibits economic growth.

REALTORS® Position

• REALTORS® support the expansion of Metrorail beyond its current termination points in Prince George’s County.
• REALTORS® support light rail and rapid transit bus routes.
• REALTORS® support using the Metrobus and the local County bus systems.
• REALTORS® support construction of safe bikeways and sidewalks.
• REALTORS® support making infrastructure improvements an important priority in the capital budgets of all three Southern Maryland counties.

Education

Background

Probably no single factor other than cost discourages home purchases in a community more than the real or perceived poor quality of education and educational infrastructure. Striving for an excellent public education system throughout Southern Maryland public schools is critical to the continued economic growth and prosperity of the region.

REALTORS® Position

• REALTORS® support smaller classes, caring teachers and staff, and courses of study that are academically challenging and which keep up with changing times.
• REALTORS® support school funding mechanisms that provide a certain and predictable stream of income.
• REALTORS® support the notion that schools provide a desirable and far reaching general social benefit to Southern Maryland and its quality of life. Good schools are social necessity such as police, fire, and health protection, therefore, schools should be funded by the full tax base.

Footnotes:

1 Maryland ranks 5th highest in the nation for total transfer tax burden. This burden is very similar to the Northeast and New England regions where the states are traditionally viewed as "high tax." See, Flick, F., The Contribution of Real Estate to the Maryland Economy, August 2005.

2 As an example, Calvert County participates in the Maryland House Keys 4 Employees program. Under the program eligible homebuyers who are employed by participating private sector companies or by the county or public school system could receive up to $15,000 in grants and low interest loans toward closing costs and a down payment.