Valley Board of Realtors suing Mat-Su Borough over transfer fee

MAT-SU -- A group of Valley Realtors has filed suit against the Mat-Su Borough to dispute a recently passed $170 fee for real-estate transactions, but the Mat-Su Borough, in answer to the Realtors' complaint, is denying claims that the fee is actually a tax.

Members of the Valley Board of Realtors, in late August, filed a lawsuit against the borough in an effort to overturn the ordinance instituting a $170 fee for real-estate transactions. The crux of the argument, according to their written complaint, is that the borough is passing off what they believe is a tax -- and therefore, should be voted on by borough residents -- as a fee for services.

"Knowing that a sales tax or property tax would not pass a popular vote, the borough attempted to circumvent the limitations on its taxing authority by cloaking this attempt to generate revenue . . . in the guise of a 'transfer fee,'" Valley Board's complaint stated.

Valley Board of Realtors' legislative affairs director Kibe Lucas said the group's opposition to the borough's action is linked to one of the group's mission statements -- to oppose legislation the board feels is harmful.

"I think, at the end of the day, the borough is going to end up looking like fools because of their actions in this matter," Lucas said. "This administration has to understand that just because they feel they need money, they cannot just pick the pockets of property owners."

The borough's response denies that the transfer fee should have been a tax, but doesn't explain further.

The suit is now in Anchorage Superior Court, having been sent to Anchorage Superior Court Judge John Suddock under a temporary transfer after, Lucas said, the two parties could not agree on which judge should hear the case at Palmer Superior Court. The borough filed its answer in the case Wednesday, denying allegations set out by Valley Board.

Valley Board asked to be given consideration as a public-interest litigant and, through their complaint, requested that the court eliminate the borough's real-estate transfer fee.

The borough is denying Valley Board's claim that it is a public-interest litigant, and claims, through the answer, that the board has no standing to file a case and is not a real party of interest in the case.

Mat-Su Borough Attorney Teresa Williams said she was not able to elaborate on the details of the borough's answer, as that information will be presented to the court in the future.

A court date has not yet been set in the case.

Contact Rindi White at rindi.white@frontiersman.com.