Summer Greetings from your State Association. We have been working on getting the message out to defeat the Margin Tax Initiative. Funny that those who are in favor of this issue call it “The Education Initiative” when in reality, it is poorly written with no guarantee that the money raised will end up with the school district. If passed, the legislature would not be able to change or touch that initiative for a period of three years. It also has a negative financial impact on the real estate industry. The brokers have been working off a very small margin of profit since the downturn happened. This tax would wipe out any profit that a real estate company would see. That being the case, the broker would have to pass that 2% tax on to their agents who in turn would pass it along to their clients. The agents have had their income impacted by the banks on both the foreclosures and short sales by having their income reduced. So that hardship is something that an average agent cannot overcome. A very small company may not meet the threshold for the tax, so in that scenario, there would be an unfair advantage in what the agent would have to pass on to their client. The tax, if passed by the voters in November, will have to be paid whether or not there is a profit made.

We are certainly not against education as it impacts the very clients we help with housing, but this is not the way to garner the money needed to help the education system. We have an extremely fragile economy here in Nevada and any financial impact on any one of the many professions could help to upset the economy again and we could be back to square one.

Rocky Finseth, our Chief Lobbyist, and Jenny Reese, Director of Government Affairs, have been giving presentations of the Margin Tax Initiative to REALTOR groups. We are actively getting out into the communities to help the general public understand this initiative. A presentation was recently given to the Realtors in Elko. It is our resolve to get as many of our Realtor members registered to vote and then turn them out to vote against this initiative. We are 13,000+ state members and certainly make an impact when we vote. If your company would like a presentation of this initiative in your office, please contact Isabelle at Carrara Nevada at isabelle@carraranv.com.

We have joined the coalition to defeat this initiative with Gaming, Retail Clerks, Mining, AFLCIO, Chamber of Commerce, senior citizens groups and that is just to name a few.

Your State Association is asking that you get registered to vote and exercise your right to vote and help defeat this Initiative in November.