California Realtors to Pay Political Assessment

Just about every California Realtor® is aware of the fact that legislative activity constantly affects the real estate business. Moreover, most know that it is only because of CAR's involvement that the business hasn't been even more negatively affected than has been experienced. In the past year alone, CAR has influenced legislation on topics ranging from deficiency judgments to income tax withholding for independent contractors to point-of-sale retrofit requirements that would have drastically increased the cost of selling a home. The list goes on and on.

The Realtors®' legislative agenda is supported in three ways: through direct member involvement, by the lobbying efforts of CAR's legislative staff in Sacramento, and by the election of legislators who are disposed to have a favorable attitude to the business, tax, property rights, and land use issues that Realtors® care about. All of these things cost money; and the election of legislators is what costs the most.

This is not a partisan issue. At both the national and the (California) state level, Realtor® PAC funds are pretty evenly distributed between the parties. Many people have the perception that Realtor issues tend to be on the Republican side, but this is not so. In the current state legislative session, 6 CAR-sponsored bills are being carried by Democrats, 2 by Republicans.

It is practically a self-evident truth that CAR needs to raise more political-purpose money than it has currently been able to generate through strictly volunteer programs. The economic toll taken by the market downturn has been evident in this area as well as the more familiar ones. In the past six years voluntary participation in political-purpose fundraising has dropped from 37% of the membership to 20%. The amount of funds raised in 2009 was down approximately 50% from 2006. Once among the top 10 PACs in the state of California, CAR is now ranked number 37.

The Realtor® Action Assessment was adopted by CAR's Board of Directors at their June meetings in Sacramento. Details about it have been on the web site car.org, and electronic newsletter notification has been sent to the members. No one should be surprised when the dues billing statements go out at the turn of the year. Inevitably, though, some will be.

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