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Health & Fitness

City Council Reduces Fees; Western Civilization to End

When the was last time you heard about a local government reducing fees or the regulations it imposes? Yeah, me neither.

When the as last time you heard or read about a local government reducing the fees it collects or the regulations it imposes? Yeah, me neither.

But check this out… the Long Beach City Council recently reduced the millstone of city licensing fees on REALTORS®. (Yes, the story is a tad self-serving but that makes it no less illustrative in the “pigs fly” category.) The Council directed the City Attorney craft an amendment to the municipal code reclassifying real estate agents from independent contractors to being a broker's employees.

The change, which was supported by the real estate industry (alert the media – oh wait, they did), would alter the $202.73 fee agents are required to pay each year to operate in Long Beach to a $25.73 per employee charge, to be paid by brokers.

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According to the Long Beach Press Telegram, the legislation's author - Councilman Gary DeLong - called the city's current system, instituted a decade ago, "onerous." The new law, he said, will simplify a process that now forces city staff members to pursue fees from between 2,000 and 2,500 real estate agents individually instead of about 200 brokers. Councilman Patrick O'Donnell, who co-sponsored the proposal, said the change makes sense and will save money and staff time.

And, in all candor, it’s not like the city’s budget hangs in balance over business license taxes from REALTORS®.

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Ah, the inevitable “but:” - City Manager Pat West disagreed with council members, expressing skepticism that money would be gained. Used as the arguing point was the old adage: “We won't know until the future and everybody pays their licenses whether it would save money."

Having been through more than few fee/tax battles I have always wondered why that fiddle isn’t played when instituting a new tax or fee but is only brought up when a fee (rare though it may be) is reduced or eliminated.

Next up: NIMBYs, no growthers, coasties and save-the-bayers... truly concerned about where their children will live versus keeping their property values up and everyone else out... advocate for new housing.

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