State and Local Reporter - 11/25/2003 (Plain Text Version)

Duane Willenbring, Chair
Saint Cloud, Minnesota

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In this issue:
State and Local Associations Receive Prestigious Legislative Award
Long Island Builders Beat Back Real Estate Transfer Tax
California Adopts Workers' Comp Reform Measure
Wichita Hosts Successful SLGA Conference
Voters Reject Excessive Regulation in November Elections
States' Fiscal Storms Show Signs of Subsiding
White Paper Series Now Online at www.NAHB.org
Expert Panel Reports on Health Effects of Indoor Mold
Study Skeptical About Solving Transportation Woes Through High-Density Development
Builders May Be Entitled to CIAC Refunds From Utilities
NAHB Staff, Subject Directories Now Available Online

Long Island Builders Beat Back Real Estate Transfer Tax

Builders in Brookhaven, New York (located in eastern Long Island) recently faced the prospect of a taxpayer-supported open space trust fund that would have given local government the ability to outbid local builders for small parcels of land.

The town of Brookhaven placed on the November ballot a 2% real estate transfer tax on the sale of homes over $250,000 and lots over $150,000.

Revenue from the measure, which would likely exceed $25 million each year, would have "made Brookhaven an eight hundred pound gorilla in the local real estate market," said Robert Wieboldt, executive director of the Long Island Builders Institute.

Wieboldt's group declared that the tax would have a devastating effect on the economy of eastern Long Island and formed a coalition with business and community groups to defeat the proposition.

The group, Brookhaven Citizens Against Higher Taxes, led a two-part effort against the ballot measure. First, the coalition launched a $300,000 public awareness campaign to alert the community of the consequences of a passed ballot measure. The coalition obtained more than 3,000 signatures opposing the tax demonstrating strong support among voters.

Secondly, the group challenged the validity of the proposition in court because the ballot language did not include critical information regarding who was liable for the tax. This opened a window to have the measure taken off of the ballot.

With less than a week before the election, a state Supreme Court justice ruled that the proposition was misleading to voters. The court ordered that the measure be removed from the ballot, and the Long Island Builders Institute declared victory.

The tax may appear on next year’s ballot, although the Long Island association, working through the Brookhaven Citizens Against Higher Taxes, has mobilized public opinion against the tax. Polls taken in late October showed the ballot measure was on its way to defeat. Most importantly, the group ignited a firestorm of opposition against higher taxes in the community.

To learn more about the Long Island Builders Institute’s success, contact Robert Wieboldt at 631-232-2345 or NAHB’s Dan Quinonez at 800-368-5242 x8585.