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REALTORS® vow to protect real estate tax provisions in tax reform legislation

Wednesday, July 10, 2013

If there is something Democrats and Republicans agree on, it is that the U.S. tax code needs to be overhauled. Legislators recently announced their intent to accomplish this formidable task.

On June 27, chairman of the U.S. Senate Finance Committee Max Baucus (D-MT) and ranking member Orrin Hatch (R-UT) announced their plan in the Senate for tax reform legislation. In a letter to all senators, they stated their intention to start with a "blank slate" and clear the tax code of all "special breaks." This means all tax expenditures, including tax deductions such as the mortgage interest tax deduction, tax exemptions like capital gains, and tax credits, will be removed from the tax code. Senators then will have the opportunity to propose changes to the tax reform legislation.

Each senator has been asked to submit in writing any tax exemptions, deductions and credits they want to see kept in the tax reform legislation. Senators have until July 26 to submit the requests – called their "pardon list" - to the U.S. Finance Committee.

There are a wide range of provisions in the tax code that affect residential, investment, and commercial real estate. The National Association of REALTORS® will be taking the lead in ensuring that each of those tax provisions is defended.

"REALTORS® are taking this development very seriously and will be working with senators to ensure provisions important to REALTORS® and homeowners are placed in this legislation," said Carolyn Miller, president of the Silicon Valley Association of REALTORS®. "REALTORS® want to make sure that real estate tax provisions are maintained in any rewrite of the tax code."

Miller said the National Association of REALTORS®, along with state and local REALTOR® associations, will be tracking the developments closely. "The passage of tax reform is far from certain, and it is likely there will be much speculation about the elimination of provisions like the mortgage interest deduction. While they may be just speculation, REALTORS® will not be taking anything about tax reform for granted. We will remain vigilant in ensuring that the mortgage interest deduction and other real estate tax provisions are defended," said Miller.

The drafting of the tax reform package is expected to take place during the August congressional recess. The goal is for the finance committee to present a completed draft for review and possible legislative action in September. REALTORS® expect a fierce tax reform debate to occur in the fall.


The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.

The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.

Variations of this article have appeared in local area newspapers.

For further information, please contact Rose Meily at SILVAR Public Affairs, email , or phone (408) 200-0109.

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