Legislative Update

In this report … CBPA Honors NAIOP SoCal President James Camp, Split Roll Proponents Submits Signatures for 2020 Ballot, November 2018 Election Activity, NAIOP Opposed to “Rain Tax”, LA County Commercial Arts Developer’s Art Fee/Tax, AB 2731 Bill is dead for now.  Contact Legislative Affairs Director Vickie Talley for help with your government affairs issues.

SoCal President James Camp Honored by California Business Properties Association

On October 25, 2018 the California Business Properties Association (CBPA) will be celebrating its 45th year (1972 – 2018) and honoring industry leaders at its Awards Dinner.  NAIOP SoCal President James Camp is being honored and recognized with a Champion of the Industry award.

The event will be held at the Renaissance Newport Beach Hotel, 4500 MacArthur Boulevard in Newport Beach.  The reception begins at 6 PM, Dinner at 7 PM and the Program at 8 PM.  For more information on the event, please email Director of Legislative Affairs Vickie Talley or call (949) 380-3300, or Melissa Stevens, CBPA, at (916) 443-4676.

Split Roll Proponents Submit Signatures for 2020 Ballot

On August 14, 2018, the group of labor unions, activists and community groups that are advocating gutting Proposition 13 and creating a split roll property tax submitted signatures to place the initiative before voters on the November 2020 ballot.  Signs that the effort was struggling vanished once Facebook infused the effort with a $500,000 political donation which allowed them to pay for signatures.

Rex Hime, CBPA’s President and CEO, is part of the leadership group opposing the split roll measure and was quoted in the group’s August 14, 2018 press release, “California already has the worst climate for business and job creation in the country.  A split roll property tax will just increase pressure on many businesses that are already finding it hard to make ends meet.”  Read the full text of the Press Release 

For the FULL TEXT of the Split Roll Tax Measure.

Learn More at http://www.stophigherpropertytaxes.org/

November 2018 Election Activity

The NAIOP SoCal Political Action Committee is actively assessing candidates and issues that will be on the November 6, 2018 ballot.  Contributions will be made to candidates and issues that support business and understand the importance of the contributions of commercial real estate to their communities.  NAIOP members are encouraged to complete the NAIOP SoCal Election Survey and return it to Director of Legislative Affairs Vickie Talley, or you may call Vickie directly at (949) 380-3300 with recommendations or requests for contributions to candidates and issues. 

NAIOP SoCal members are encouraged to contribute to the NAIOP SoCal PAC.  For more detailed information, feel free to call Vickie or use this Contribution Form to send in with your contribution. 

Los Angeles County Stormwater Parcel Tax on 2018 Ballot:  NAIOP OPPOSED to “Rain Tax”

We just got hit with the County parks parcel tax in 2016, and they are back again.  Unfortunately, the LA County Board of Supervisors has placed another parcel tax on the November, 2018 ballot.  This proposed tax is 2.5 cents per square foot of impermeable space for every residential and commercial parcel in LA County and all 88 cities in the County, supposedly to pay for the Clean Water Act stormwater mandates.  While NAIOP and many others tried to get the County to create an actual plan of projects and be clear on the amount of the tax, the County did not do so.  At this point, we cannot tell you how much the County will claim is the amount you will be charged nor what projects it might actually pay for.  Additionally, there is no sunset clause so it is a permanent, forever tax. Basically, the County is saying send us the money now and we will figure out what to do with it later.  This is unacceptable.

This tax measure does require a 2/3rds vote, and there is an organized campaign to oppose the measure.  The County is also considering another new tax to put on the 2020 ballot. It seems their appetite for new and higher taxes is never-ending, and it is time to say enough is enough.  As with any campaign, it is necessary to raise funds, and all NAIOP members are being asked to contribute to the opposition campaign.  For more information, contact Assistant Director of Legislative Affairs Peter Herzog at 949-380-3300 or peter@talleyassoc.com

Los Angeles County Commercial Arts Developer’s Art Fee/Tax

In addition to the parcel taxes, LA County also wants to place another new tax/fee on commercial development only, not residential, to fund public art.  The amount of the art tax would be 1% of the building valuation. In general, the arts tax would apply to all new commercial projects with a building valuation of $500,000 or more, as well as all commercial repair and renovation projects of the same value. “Building valuation” is defined as the “total value of all construction work for which a building permit is issued…”  The developer could either build a piece of art, cultural facility, conserve or restore current art or provide artistic or cultural services, or pay an in-lieu fee equal to 1%.

The arts tax actually was taken to the Planning Commission to recommend that the Board of Supervisors approve the new tax. NAIOP and other business organizations testified in opposition and got the hearing continued to October 31. Serious questions were raised, and this caused the Planning Commissioners to ask several questions of staff. We will continue to fight this effort, and we would note there was no information defining the art  ”demand” in the County the staff kept referencing, or how commercial development contributes to any such demand.  For more information contact Assistant Director of Legislative Affairs Peter Herzog at 949-380-3300 or peter@talleyassoc.com

Carried Interest Bill Introduced in California Legislature – Dead for Now

NAIOP and CBPA successfully opposed AB 2731 because of the effect it would have on reducing private capital to fund property development and upgrades.  The bill is dead for now, but there is always the risk of it coming back the next legislative session.