• Established in 1972 · CBPA has over four decades of service to the commercial industrial retail real estate industry
  • Archive for July, 2010

    Jul 30

    HEALTH CARE TAX ON REAL ESTATE

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    The rumor you have heard that the new federal healthcare law imposes a tax on real estate transactions is true.  However it might not be as bad as first reported. Our friends at Marcus & Millichap looked into the issue and report that the bill does NOT call for tax on all real estate transactions as many had feared.  Instead, the bill imposes a 3.8% tax on the lesser of 1) your capital gain on a transaction, or 2) your net income above AGI on your 1040 (in that tax year), and the tax would be paid with your income tax filing.  The bill is silent on exchanges.  This all goes into effect on January 1, 2013.  This information comes from HR 4872 Title 1, Subtitle E, Chapter 2, Section A.  But tax law is complicated, so please check with your financial advisors.

    Jul 30

    MORE FALLOUT FOR PACE PROGRAMS

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    The California Energy Commission canceled a $30 million solicitation that would have supported PACE programs in 23 counties and 184 cities. The Commission action, which responded to roadblocks created by recent actions of the Federal Housing Financing Authority (FHFA), ended awards to five local governments and jurisdictions that were using Property-Assessed Clean Energy (PACE) financing as the cornerstone of their county and statewide energy investment programs.  This action, however, was taken in an attempt to save the program in California and allow property owners to benefit from its financing provisions.  Click here to read how.

    Jul 30

    HIGH PROPERTY TAXES WASTED

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    In a sad anecdote that bolsters the worry that increased revenue to government from increased property taxes from schemes like split roll will not be spent wisely, AP reports that the City of Bell, where excessive salaries for city employees has become scandalous, has the second-highest property tax rate in L.A. County.  Residents and businesses in Bell were paying more in property taxes than if they were located in Malibu or Beverly Hills.  Click here to see the full story.

    Jul 30

    ENHANCED DEPRECIATION PROPOSAL

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    Our friends at ICSC report that Congresswoman Shelley Berkley (D-NV) introduced H.R. 5943, the Community Renewal and Enhancement (CRE) Act, legislation to allow a fifty percent (50%) depreciation for the portion of any equity investment used to buy down debt on commercial real property.  This is something that is highly supported by our industry and hopefully can be used to further educate Members of Congress about the negative impact of taxing carried interest.

    Jul 30

    LONGTIME CBIA LEADER BOB RIVINIUS RETIRES

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    Today ends an era at the California Building Industry Association.  Bob Rivinius brings his storied 33 year career representing homebuilders to a close.  CBPA President and CEO Rex Hime states, “CBIA has been one of CBPA’s staunchest allies in Sacramento and Bob has always been there when needed.  He is a good friend to me and is one of the most respected individuals in our business.  I wish him all the best!”  Click here to read more about Bob.

    Jul 30

    UNCOLLECTED SALES TAX HURTS RETAIL REAL ESTATE INDUSTRY

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    An op/ed penned by our very own Rex Hime, explains how what was once a useful and needed policy has become an anachronism that is hurting sales tax revenues in California.  Thanks to a U.S. Supreme Court ruling issued years before Internet commerce was prevalent, online retailers do not collect state sales taxes, but instead place the burden of reporting on the consumer. That means consumers can buy online the same products that small businesses sell in their stores, even though out-of-state retailers operating on the Web can exploit a loophole to get around collecting the sales tax. Clearly this gives those out-of-state retailers a competitive advantage and hurts California’s small businesses.  Click here to read the full story and find out why the state is giving up $3.6B in revenue.

    Jul 30

    STILL NO BUDGET – 30 DAYS LATE

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    Over the Legislative Summer Recess, that technically was deemed not a recess by legislative leaders, things were quiet in Sacramento and not much activity on the budget seemed to be happening.  Apparently that was absolutely the case. But as time drags on and the state is nearing the point at which it runs out of cash, the rhetoric is heating up.  Click here to read a piece outlining one of the sticking points in the negotiations relating to the Governor’s insistence that public employee pensions be reformed.