Louisiana REALTORS® Defeat a Proposed Tax on Services

Louisiana REALTORS® Defeat a Proposed Tax on Services

April 2018

The Louisiana REALTORS® weren’t exactly surprised when the state legislature recently started talking about implementing a tax on services to help close a major budget deficit.  “It’s something that comes up every couple of years,” says Kim Callaway, the REALTORS®’ Director of Legal and Governmental Affairs, who cites the economy and chronic structural budget problems as the chief reasons for the threat, which has always been defeated, but which her organization can’t afford to ignore.

“A tax on services would not just effect our members, as service providers,” Callaway points out, “it would have a huge impact on consumers paying for the services of home inspectors, termite inspectors, attorneys, mortgage brokers, and so on.  It would significantly increase the cost of getting in to a new home or business property, and we have a mandate to protect these consumers as best we can.”

While some of the REALTORS®’ legislative contacts assured them that the tax proposal wouldn’t pass, and that they were just reviewing all their options, the REALTORS® weren’t taking any chances. “It was happening fast, and we had to act, just in case it grew legs,” recalls Callaway. “The bill was filed on a Friday, the session started on Monday, and the House Ways and Means Committee heard the bill on Tuesday. Up at the National Association of REALTORS®, thank goodness, the REALTOR® Party team was able to spin on a dime.” She had seen the emails about the new Advocacy Everywhere program, and knew that was what the Louisiana REALTORS® needed, pronto. “We contacted them as soon as the issue came up, and asked, ‘How do we do this? We need it to happen now!’ ”

While Callaway and her team were on the ground in Baton Rouge engaged in essential lobbying at the statehouse, the Advocacy Everywhere professionals at NAR were setting up text mobile alerts and email Calls for Action to REALTOR® constituents of the Louisiana House Ways and Means Committee members. REALTOR® recipients responded at a click-through rate of 38%, and the bill was killed in committee. “We like to think that the number would have been even higher,” notes Callaway, “but it all happened so fast. We’re just grateful for those of our members who had a chance to respond, and did so.”

The legislators have still not been able to reach a consensus on how to resolve the budget deficit, and Callaway anticipates that they’ll have to hold another special session to address the matter prior to the start of the coming fiscal year. While the REALTORS® aren’t actively supporting any other revenue-generating solutions, she says, they’re not opposing any, either. Meanwhile, thanks to their vigilance, and to the REALTOR® Party, issues important to the real estate industry are being protected.

To learn more about how the Louisiana REALTORS® are using REALTOR® Party resources to protect its members and prospective home and commercial property buyers in their state, contact Kim Callaway, Director of Legal and Governmental Affairs, at 225-923-2210.

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