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  • Archive for January 15th, 2016

    Jan 15

    CHANGE OF OWNERSHIP EARNS BIPARTISAN VOTE

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    Senator Patricia Bates (R-Laguna Niguel) bill to address the “change of ownership” issue passed the Senate Governance and Finance Committee on a 6-0 vote.  Senate Bill 259 would correct an outdated interpretation of property change of ownership that has been the long running debate around commercial property and Proposition 13.  Business and taxpayer groups (including commercial real estate groups) were joined by the League of Cities in supporting the measure.
    SB 259 would alter the definition of “change of ownership” in the California Revenue and Tax Code for determining the property tax base value of commercial property. Current law allows for a property to be reassessed if a majority of the ownership interest changes hands. SB 259 would require any property to be reassessed if 90 percent of the ownership interest changes hands within any three-year period.
    Rex Hime, President & CEO of the California Business Properties Association stated, “The commercial real estate industry applauds the bi-partisan effort to fix this change of ownership issue. Our industry has sought for years to correct abuses in the system and this bill closes down the issue that we have heard so much about.”

    SB 259 now goes to the Senate Appropriations Committee for its consideration. It requires a two-thirds vote of both houses of the Legislature and Governor Brown’s approval to become law.

    Although this bill is the same as the “deal” worked out several years ago with then Assemblymember Tom Ammiano (D-San Francisco) sought to address this issue, long time split roll proponent Lenny Golberg opposed the bill in committee.  However, the various political and public employee unions that want to see split roll tax enacted in California have begun coalescing in opposition to the bill.

    Here is a Sacramento Bee article about the issue.

    Jan 15

    BILL WOULD FIX PROP 13-RELATED ISSUE

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     Click here to read Senator Patricia Bates’ (R-Laguna Niguel) op/ed on SB 259:

    “SB 259 would provide that a change in ownership occurs when 90 percent of a legal entity’s ownership interests transfer in a single transaction. Bates’ bill is supported by the Howard Jarvis Taxpayers Association, the California Chamber of Commerce, the California Business Roundtable and the California Business Properties Association. A similar bill authored by former Assemblyman Tom Ammiano (D-San Francisco) earned bipartisan support in 2014 and cleared the Assembly, only to die in the Senate.”

    Jan 15

    SB 820 SEEKS EXTENSION OF BROWNFIELD PROGRAM

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    Senator Hertzberg (D-Los Angeles) has introduced SB 820 which seeks to make permanent the California Land Reuse and Revitalization Act (CLRRA), which encourages clean-up of hazardous waste and revitalization of blighted properties in California.   This bill is has been tagged as a legislative priority by the California Association of Local Economic Development (CALED) and is also supported by CBPA.

     Senator Hertzberg notes that Brownfields remain a significant problem nationwide. These properties represent formerly used industrial sites with hazardous contamination, which deters redevelopment. Clean-up costs can be expensive, and buyers of brownfield sites may be liable for previous contamination at the sites, even if they had no role in contaminating them.

    As a result, many sites remain vacant and developers are hesitant to take on such risk. In California, the Department of Toxic Substances Control (DTSC) states that there are “an estimated 90,000 properties throughout the State – including former industrial properties, school sites, military bases, small businesses and landfills;” many of these sites also contribute to urban blight.

     Click here for a copy of SB 820.

    Jan 15

    LENGTHY BALLOT SHAPING UP FOR NOVEMBER

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    Our friends at the CalChamber have a review of the significant ballot measure that are shaping up for 2016.  Two measure of concern to the commercial real estate industry have already made the ballot, a CBPA Supported School Bond measure and a CBPA opposed proposal to require statewide voter approval for revenue bonds exceeding $2B.

    Additionally, we are closely watching several measures that are out for signature including a significant Property Tax surcharge on all properties assessed at more than $3M;  extension of Proposition 30’s income tax increased; a minimum wage increase to $15 an hour by 2021; and a water bond proposal.

    Click here to read the full article.

    Jan 15

    PROPERTY TAX INITIATIVE COLLECTING SIGNATURES

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    The property tax initiative noted above is referred to as the “Collis” initiative after one of its primary proponents.  The measure would create a sliding scale property tax surcharge on all properties (commercial and residential) assessed at more than $3 million.  The increased taxes are dedicated to fund “poverty reduction programs.”  So far, the initiative has collected about 25% of the signatures it needs to qualify and has until March 21, 2016, to collected the required 585,407 signatures needed.  This initiative is becoming a reality that out industry must be prepared for.

    Jan 15

    INTRA-PARTY POLITICAL BATTLES HEATING UP

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    In addition to the ballot measure battles, the intra-party politics of 2016 are starting to get complicated.  Here is a piece by the Bee’s Dan Walters that surveys the battles between moderate Democrats and some of the party’s core constituencies.  Click here to read.

    Jan 15

    2016-16 GOV’S BUDGET SUMMARY

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    The state Constitution requires the Governors to submit a budget proposal for the next fiscal each year by January 10, but this year the budget was released three days early.

    So, the annual budget battle begins.  However, this year the state is planning on a second surplus year in a row – which may make the battles even more intense, as members of the majority party fight to lock-in  a share of that new revenue for new and existing programs while the Governor tries to tuck some money away to stave-off deficits.

    Over the next few months this budget will be dissected, disconnected, taken-apart, reconfigured, lambasted, and generally go through the standard process.  Below is a summary.

    The proposed budget includes:

     

    • Total spending (including bond and special funds): $170.7 billion
    • General fund spending: $122.6 billion
    • Personal Income Tax continues as the leader in state revenues at $83.8 billion. Sales tax is second at $25.9 billion.
    • Proposition 98 (K-14 education spending): $71.8 billion (plus $257 million from prior year “settle up” from underfunding of the guarantee.
    • “Rainy Day” fund for the next recession: $8 billion

    At the press conference when asked about extending Proposition 30’s “temporary” taxes, the Governor essentially had no comment.  Many majority party legislators and advocates for school and health and human services groups would like to see an extension of one component of Prop. 30–the tax on those making over $250,000 a year, while letting the sales tax premium subside. There are currently initiatives on the street that will qualify that would do just that.

    Click here to get all the information on the proposed 2015-16 Budget.

    Jan 15

    2016 BUILDING EFFICIENCY STANDARDS SEMINAR

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    California’s building efficiency standards have been updated, with changes that will become mandatory in January 2017. This seminar will cover what’s new in Title 24 for both residential and non-residential buildings, from high performance walls and attics to lighting and lighting controls.

    The session will also review challenges that have resulted in implementing the 2103 standards, strategies for addressing them, and solutions to these challenges that may be included in the recent revisions.

    With each cycle, California’s Energy Code is moving closer toward the goal of ZNE for all new construction. It’s vital for you to stay up to date with its evolution.

    Click here for more information and to register.

    Jan 15

    PROPERTY TAX INITIATIVE COLLECTING SIGNATURES

    Posted by CBPA | No Comments

    The property tax initiative noted above is referred to as the “Collis” initiative after one of its primary proponents.  The measure would create a sliding scale property tax surcharge on all properties (commercial and residential) assessed at more than $3 million.  The increased taxes are dedicated to fund “poverty reduction programs.”  So far, the initiative has collected about 25% of the signatures it needs to qualify and has until March 21, 2016, to collected the required 585,407 signatures needed.  This initiative is becoming a reality that out industry must be prepared for.

    Jan 15

    CBPA 2016 CALENDAR

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    **2016**

     

    February 17, 2016

    CBPA Winter Board Meeting

    CalChamber, Sacramento

     

    March 17, 2016

    CBPA’s Industry-Wide Legislative Committee Meeting

    Southern California

     

    June 7 – 8, 2016

    California Commercial Real Estate Summit

    & Annual Meeting

    CalChamber, Sacramento

     

    October 20, 2016

    CBPA Industry Awards Dinner

    Fairmont Hotel Newport Beach

     

    For more information on any of our events, please contact Melissa Stevens at 916-443-4676 or mstevens@cbpa.com.