• Established in 1972 · CBPA has over four decades of service to the commercial industrial retail real estate industry
  • Archive for May, 2014

    May 23

    CELEBRATE FREEDOM/HONOR OUR VETS THIS MEMORIAL DAY

    Posted by Crystal Whitfield | No Comments

    As you enjoy the long weekend, please take the time to reflect upon the many sacrifices that American men and women have made and continue to make, which allow us to enjoy the freedoms we have on this Memorial Day.

     

    May 23

    SUSPENSE FILES TAKEN UP TODAY

    Posted by Crystal Whitfield | No Comments

    This week, both Houses of the California State Legislature dealt with hundreds of bills on their fiscal committees’ “Suspense File.”  Any bill that has a significant cost to the state’s General Fund, generally $150K or more, go to Suspense for consideration about impact on the state’s overall revenue.  This ostensibly allows the committee members to get a full picture of new costs to the state, prioritize requests, and limit the impact on public funds for new legislative initiatives.  However, the business community has long complained that this process does not also consider costs to private sector companies or impact on jobs – both of which have an indirect impact on the state budget.

     

    May 23

    TAX BILLS ON SUSPENSE

    Posted by Crystal Whitfield | No Comments

    Below are a few major tax bills we are following that will be considered today on the Suspense Files.

    SB 1017 (Evans) Oil and gas severance tax

    Would establish the California Higher Education Endowment Corporation (CHEEC) in state government. The bill would establish an oversight board to govern the CHEEC, and would require that board to appoint the chief executive officer of the CHEEC. The bill would require the CHEEC to annually allocate the moneys in the continuously appropriated California Higher Education Fund, which would be created by the bill, first to the Controller, and second to the California Community Colleges, the California State University, the University of California, the Department of Parks and Recreation, and to the California Health and Human Services Agency, in specified proportions and for expenditure as provided. — OPPOSE

    SB 1372 (DeSaulnier) Publicly-traded corporate tax rates

    Would, for taxable years beginning on and after January 1, 2015, revise that rate for taxpayers that are publicly held corporations, as defined, and instead impose an applicable tax rate from 7% to 13%, or for financial institutions, from 9% to 15%, based on the compensation ratio, as defined, of the corporation. This bill would increase the applicable tax rate by 50% for those taxpayers that have a specified decrease in full-time employees employed in the United States as compared to an increase in contracted and foreign full-time employees, as described. This bill contains other related provisions and other existing laws.  — OPPOSE

    AB 1564 (V.Perez) R&D tax credit

    The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws, including a credit for a percentage of specified research expenses. This bill would increase that percentage by 3% each taxable year for 5 taxable years and then return to the current rate. — SUPPORT

    AB 1777 (Quirk-Silva) Timeliness penalty abatement

    Would require the Franchise Tax Board, upon request of a qualified taxpayer, as defined , to abate a failure-to-file or failure-to-pay timeliness penalty when specified circumstances are met, including where the qualified taxpayer has paid, or is in a current arrangement to pay, all tax currently due and the Franchise Tax Board has not imposed a timeliness penalty in the year of the request or prior 4 years.  — MONITOR

    AB 1984 (Harkey) NOL carrybacks

    Federal income tax law includes procedures that allow a taxpayer with net operating loss carrybacks to obtain a tentative refund of taxes paid in prior tax years by filing a tentative carryback adjustment application and allow a corporation to apply to extend the time for payment of taxes for the immediately preceding taxable year. This bill would conform to those federal provisions – SUPPORT.

    AB 2109 (Daly) Parcel taxes report

    Current law requires the Controller to compile and publish reports of the financial transactions of each county, city, and special district within this state, together with any other matter he or she deems of public interest. This bill would additionally require the Controller to include specified information in those local government financial transaction reports relating to the imposition of locally assessed parcel taxes, including, among other things, the type and rate of a parcel tax and the number of parcels subject to or exempt from the parcel tax. — SUPPORT

    AB 2372 (Ammiano) Change of ownership –

    Current property tax law defines “affiliated group” to mean one or more chains of corporations connected through stock ownership with a common parent corporation if certain conditions are met, including, among others, that the common parent corporation owns, directly, 100% of the voting stock of at least one of the other corporations. This bill would lower the percentage of voting stock of at least one of the other corporations required to be directly owned by the common parent corporation from 100% to 90%. – MON/SUPP – Working with Chair of Rev & Tax on New Amendments

    AB 2415 (Ting) Property tax agents

    Would, commencing September 1, 2015, prohibit a property tax agent, defined as any individual who is employed, under contract, or otherwise receives compensation, from communicating directly with any county official for the purpose of influencing official action relating to the establishment of a taxable value for any property subject to taxation, and from representing a taxpayer before a county official, without first being registered and issued a registration number by the Secretary of State. This bill contains other related provisions. — MON/OPP

    May 23

    FIRST HOUSE DEADLINE

    Posted by Crystal Whitfield | No Comments

    Next week we face a major Constitutional Deadline of the Legislative process, known as “First House Deadline.”  All bills must be out of the house they were introduced in, or they are dead for the year.  This is one of the busiest times of the year in the Legislature, and below you will see several opportunities for advocacy that we hope you engage in to kill bad bills that will impact your bottom line.

     

    May 19

    CALIFORNIA COMMERCIAL REAL ESTATE SUMMIT – JUNE 10 & 11

    Posted by Crystal Whitfield | No Comments

    Ever want to come to Sacramento and talk to legislators about the impact that state legislation and regulations have on your business?  Now is your chance!

    The California Commercial Real Estate Summit (CCRES) will be held in Sacramento on June 10 and 11, 2014.  This event is the one time of year that industry leaders from all sectors of the commercial, industrial, and retail real estate industry converge on California’s Capitol to meet with policymakers.  The summit gives you an opportunity to meet other industry leaders from across the nation, high-level staff from Governor Brown’s Administration, and California State Legislators.

    There is still time to register!  Click here for more information.  Sponsorship opportunities are also available.  Email Melissa Stevens for more information or for help with registration.

    The goal of the California Commercial Real Estate Summit is to increase public policy and political awareness of state issues impacting commercial, industrial, and retail real estate, and to foster collaborative efforts among business leaders from all sectors of California and their representatives in the State Legislature.

    May 19

    CALIFORNIANS TO STOP HIGHER PROPERTY TAXES

    Posted by Crystal Whitfield | No Comments

    As you know, CBPA is a founding members of a coalition that has banded together to provide education and information about the problems related with eviscerating Proposition 13.  The group is named Californians to Stop Higher Property Taxes.  On your behalf, our coalition provides a website with lots of good resources for news and information related to attempts to increase your property taxes, including academic studies that show the negative impacts a split roll would have on California’s economy.  Click here to visit the CSHPT website.

     

    May 19

    DOES THIS FIX SPLIT ROLL THREAT?

    Posted by Crystal Whitfield | No Comments

    In a word, “NO!”

    This year in the Legislature we are facing unprecedented attacks on Proposition 13 coming from the parcel tax angle.  Upwards of nine Constitutional Amendments are seeking to lower voter thresholds on your properties from 2/3s to 55%.

    Additionally, one of the most serious threats to implementing a split roll tax (via non-uniform parcel taxes), SB 1021 (Wolk; D-Davis), has passed the Senate and is being considered by the Assembly.  That bill needs only a majority vote to pass and the partisan make-up of the Assembly is unfavorable in terms of elected officials potentially sympathetic to undermining these protections, unless we work hard to educate about the benefits of a uniform system.

    We must focus our efforts on these serious threats.

    May 19

    LA TIMES COVERAGE OF CHANGE OF OWNERSHIP DEAL

    Posted by Crystal Whitfield | No Comments

    Howard Jarvis group won’t oppose bill to close Prop. 13 loophole is how the L.A. Times headlined their story about the deal struck with Assemblymember Bocanegra.  Click here to read the full story.  However, here is a fun excerpt outlining some of the committee hearing:

    Lenny Goldberg, leader of the California Tax Reform Assn., praised the measure as a “step forward” and noted the irony of being on the same side as his frequent foes.

    “I get a little nervous sitting here with Rex Hime,” president of the California Business Properties Assn., Goldberg deadpanned. “He and I have been at it for many, many years.”

    Hime, in a quick rejoinder, said he gets “a little tongue-tied sitting next to Lenny.”

    Hime later said he believed that the unlikely coalition of supporters would stick together “unless one side or the other gets greedy.”

     

    May 19

    AGREEMENT REACHED ON “CHANGE OF OWNERSHIP” BILL

    Posted by Crystal Whitfield | No Comments

    This week a potentially historic agreement was reached in the Assembly Revenue and Taxation Committee between some major figures in the business community and the main group that has been seeking to re-work the “Change of Ownership,” rules under Proposition 13 was announced, during a hearing of AB 2372 (Ammiano; D-San Francisco), a bill we have been opposing.

    Over the years, some complicated property purchase deals have given the appearance of an attempt to skirt Prop. 13’s change of ownership rules, whether they were doing that or not.  These “examples” have then become cause celebre and used as the main weapon to galvanize anti-Prop. 13 groups to undermine the law as a whole.  This agreement is meant to update some of the laws implementing statutes to address that appearance of “gaming” the system.

    Currently, a property is reassessed when it is sold and/or changes ownership. However, if none of the purchasers acquires more than a 50% interest reassessment may not necessarily be triggered.   AB 2372 will be amended to clarify that as long as 90% of a property is sold, a reassessment would be triggered, regardless of whether any individual buys more than 50% of the property.  Safeguards are being negotiated now to clarify that the change of ownership clarification does not apply to normal turnover of stock for publicly traded companies.

    As an organization, we have always staunchly defended Proposition 13 and will continue to do so.  However, part of an effective defense of the law recognizes that some of the original implementation language may need to be updated to assure the goals of Prop. 13 are being met.  We believe this is one of those cases.

    Click here for a press release from the author and from the chair of Assembly Revenue and Taxation Committee.

    May 15

    CALIFORNIA COMMERCIAL REAL ESTATE SUMMIT – JUNE 10 & 11

    Posted by Crystal Whitfield | No Comments

    Ever want to come to Sacramento and talk to legislators about the impact that state legislation and regulations have on your business?  Now is your chance!

    The California Commercial Real Estate Summit (CCRES) will be held in Sacramento on June 10 and 11, 2014.  This event is the one time of year that industry leaders from all sectors of the commercial, industrial, and retail real estate industry converge on California’s Capitol to meet with policymakers.  The summit gives you an opportunity to meet other industry leaders from across the nation, high-level staff from Governor Brown’s Administration, and California State Legislators.

    There is still time to register!  Click here for more information. Sponsorship opportunities are also available.  Email Melissa Stevens for more information or for help with registration.

    The goal of the California Commercial Real Estate Summit is to increase public policy and political awareness of state issues impacting commercial, industrial, and retail real estate, and to foster collaborative efforts among business leaders from all sectors of California and their representatives in the State Legislature.

     

     

    May 15

    CALIFORNIANS TO STOP HIGHER PROPERTY TAXES

    Posted by Crystal Whitfield | No Comments

    As you know, CBPA is a founding members of a coalition that has banded together to provide education and information about the problems related with eviscerating Proposition 13.  The group is named Californians to Stop Higher Property Taxes.  On your behalf, our coalition provides a website with lots of good resources for news and information related to attempts to increase your property taxes, including academic studies that show the negative impacts a split roll would have on California’s economy.  Click here to visit the CSHPT website.