State officials are saying a the cost of a real estate license will go up only $100, hundreds less than had originally been proposed.
The current $275 fee for a two-year license had been proposed to go to $685.
The change was “based on the robust public comment on the fee increase proposal as it came out in the draft stage,” said Don Habeger, the Department of Commerce, Community & Economic Development’s director of the Division of Corporations, Business & Professional Licensing.
Deputy Commissioner Curtis Thayer told the Legislature’s Budget & Audit Committee Monday of the reduction as it met in Anchorage, but has yet to receive extensive feedback on the proposed reduction in the increase, he said.
“I would expect the real estate community would be more in favor of the $100 increase than it was the $685 increase,” Habeger said.
A strong turnout from real estate professionals at a recent House Community and Regional Affairs Committee meeting showed intense and geographically widespread opposition.
The state licensing programs are intended to be self-supporting by recovering their costs, but a series of unexpected investigations in the last year drove the state to seek more revenue.
Real estate agents said the state should cut costs by reining in regulators rather than raising fees.
Habeger said costs would have to be cut, and officials will work with the Alaska Real Estate Commission to figure out the best places to cut.
“We will have to look at each and every aspect of the program and come up with a package that meets our needs,” Habeger said.
Additional cost savings are possible with efficiency and automation, he said. The state wants all of its professional licensing done with more automation.
• Contact reporter Pat Forgey at 523-2250 or at patrick.forgey@juneauempire.com.
Comments (6)
Add commentWhiners
TAX EVERYONE ELSE BUT ME!!!
The increase would have amounted to $410 annually.
That's less than $35/month. That's a buck a day just to do business in Alaska.
Of course there was robust opposition. The room was likely packed with nothing but realtors kicking and screaming.
Whiners.
Who needs the money more?
Why am I not surprised that they didn't have to pay a fee increase? Wait, instead of putting the onus on them to license themselves, they said, "Real estate agents said the state should cut costs by reining in regulators rather than raising fees."
After the collapse of our housing market, it seems wise to loosen our regulations? Really?
Now wait till something comes up in the legislature for the education for children in our state... then the answer seems to always be no no no.
Maybe we can ask realtors to spend time helping children when the time comes, since they all had the time to pack rooms in protest over this fee. It's nice to have a flexible schedule.
I think state employees
I think state employees should have to pay $35 month for the "privilege" of being employed, producing things that nobody in the real world would buy.
@maddy
Remember that next time you cash your PFD check. Some state worker had to process that for ya. Not all workers create tangible goods, some create services you use every day.
Base license rates on income. 1% of gross with no exemptions. Someone earning $100,000 would pay $1000 and could write it off their taxes as a business expense. Someone earning $20,000 would pay $200.
Problem solved.
@maddy
Remember that next time your stuck on a mountain. State troopers might just decide not to come out for a search and rescue party since someone with the State didn't process payroll, or make the purchase for the gear they would need.
Taking a fee that's currently
Taking a fee that's currently $275 and hiking it up to $685 dollars is ludicrous! I'm not a realtor, but I can sympathize. Several occupations require that you have a specific kind of license - I'd be curious to know what the fees are on those and if there are proposals to hike those fees through the roof. I'm happy they lowered it down to "only" a $100 increase.
Note for Jo
http://homebuying.about.com/od/realestateagents/qt/102208_AgtIncom.htm
In addition to a real estate license, you need a business license, errors and ommissions insurance, general liability insurance, extra insurance for your car, your own office supplies, computer, internet access, advertizing, business cards, cell phone, printers... The article is correct with the 80/20 rule. So, if they want to base the license upon income reported on the tax return, 80% of licensees would pay less under your scenario.