TAX COMMISSION SUBMITS FINAL REPORT

The Commission on the 21st Century (Tax Commission) submitted its final report to the Governor. There had been high hopes that the fourteen members of the Commission would be able to submit a consensus report. However, dissent in the ranks has been a major subtext.

Nine members endorsed the report: Chairman Gerald Parsky, Ruben Barrales, Michael Boskin, John Cogan, Edward De La Rosa, Christopher Edley, Jr., Monica Lozano, Becky Morgan and Curt Pringle. The five who did not sign-on include: Bill Hauck, George Halvorson, Jennifer Ito, Fred Keeley, Richard Pomp.

The report recommendations consist of the following:

• Reduce personal income tax
• Eliminate state portion of sales tax
• Eliminate corporate tax
• Adopt a Business Net Receipts Tax (BNRT), not to exceed 4%
• Create independent tax appeal body
• Establish a new rainy day fund

The BNRT is the centerpiece of the plan, but is extremely controversial with both parties, unions, and business groups, and insiders believe is a non-starter.

Please note that changes to Proposition 13 in the form of a Split Roll Property Tax is not included in the plan. This is good news for our industry, and we thank everyone that has reached out to a policymaker in the past three months to explain the devastating effects of this bad idea.

The Governor is embracing the report – the Legislature has been less than welcoming. Legislative panels will take up the report next week, but may only consider parts of it, may push forward ideas not included in the report, or may simply do nothing.

For more information on this issue, and all things related to taxes, Californians Against Higher Property Taxes is continuing to raise awareness about proposed tax increases. Updates are available on the coalition’s website.

THOUGHTS ON TAX PROPOSALS SOLICITED

Although our current assessment of the proposal indicates that it is fatally flawed and has little chance of passing the Legislature, we would like your feedback. The BNRT in particular is very troubling.

The 400+ page report is available on the commission’s website. Your thoughts and feedback are encouraged. Please feel free to share this information with your local members and colleagues.

GREEN BUILDING STANDARDS 2009 – FEEDBACK NEEDED

In an effort to promote sustainable buildings, California last year became the first state in the nation to adopt a statewide Green Building Code. Known as CalGreen, it is already being updated and industry input is critical. We are now in an “official” comment period with a 45-Day Notice of Proposed Action, which ends in mid November.

Your analysis and feedback is needed on the proposed changes for non-residential properties. To read the proposed changes for California Green Building Standards Code, Part 11, Title 24 -- Commercial, Industrial, and Retail Real Estate, click here.

It is very important that members of our industry read these regulations and identify issues that members of the Building Standards Commission should consider. We will compile industry comments and provide written and verbal testimony. Please send any and all comments by replying to this email or sending directly to Matthew Hargrove. Comments are due to CBPA by no later than Friday, November 8, 2009.

KEY TAX CHANGES FROM BUDGET AGREEMENTS

Speaking of tax changes…the California Chamber of Commerce is urging businesses to review the important tax changes resulting from this year’s budget agreements. Changes include estimated tax payments, income tax withholding, and use tax registration and reporting. The information is technical in nature and may require additional assistance from a tax professional or accountant.

As a proud member of the CalChamber we urge all of our companies to take advantage of this review and resources offered. For more information about all tax measures of concern, click here.
 

FIRST MEETING OF COMMISSION ON DISABILITY ACCESS

The first meeting of the California Commission on Disability Access will be held on Oct. 19 in the State Capitol. The Commission was established by industry supported legislation (SB 1608) which was designed to promote and increase compliance with laws providing equal public access in places of business to individuals with disabilities while reducing unwarranted litigation.

Appointed by Governor Schwarzenegger and representing our industry on the Commission is Michael Dean, from the respected firm Wendel Rosen Black & Dean, and longtime CBPA board member.

Members of the public are invited to attend and provide comment. Click here for more information.

Click here for more information on this significant ADA reform.

AB 32 FEES – “SHOW ME THE MONEY”

Dorothy Rothrock, vice president of the California Manufacturers & Technology Association and co-chair of the AB 32 Implementation Group, asks what the California Air Resources Board has done with $57 million in fees meant to pay for administration of AB 32 (Global Warming Solutions Act) from 2007 to 2009.

“It’s a basic rule that public agencies must justify how fee revenues are spent. How much for staff, equipment, travel, and consultants?... But these didn’t show how the $57 million was spent.”

As we are a member of the Executive Committee of the AB 32 Implementation Group and a part of the party to public records request asking for ARB to show how the money has been spent, we encourage you to read the full article here.
 

SALE-LEASEBACK STATE-OWNED OFFICE BUILDING

The State of California, Department of General Services, Real Estate Services Division (RESD), is seeking proposals from qualified and California licensed commercial real estate brokerage and/or investment banking firm(s) with qualified personnel having previous experience in providing commercial real estate brokerage and advisory services to sellers on large scale investment income property sales and/or sale-leaseback transactions for governmental and/or corporate clients. Click here for the RFP.
 

CALIFORNIA GREEN BUILDING CODE GOES NATIONAL

In 2008, California adopted the country’s first statewide Green Building Standards Code (come to be known as “CalGreen”). The code is already undergoing its second revision and has been hailed for the potential it has to increase the sustainability of all new buildings in a state that is already building the “greenest” buildings in the country. In a nod to California’s good work, the International Code Council has announced that it is developing a new code for commercial buildings entitled the International Green Construction Code, and will use the current California Green Building Standards Code as a key reference document. Click here to read more.
 

NORCAL CITY MANAGERS LUNCHEON

On Thursday, October 29, NAIOP is co-sponsoring the City Managers Luncheon with Lambda Alpha International at the Dante Club in Sacramento. Eight City Managers are currently scheduled to appear and more are expected. This event will be moderated by our own Rex Hime. Sponsorship opportunities are available. See this flyer for information.
 

2009 STRATEGIC ISSUES CONFERENCE

*** Last day for discounted room rate is Monday, October 5th ***

Please join us on Nov. 5-6, as several major industry groups combine forces to sponsor a high level discussion regarding “Climate Change” policy and its impact on business in California. From AB 32 greenhouse gas regulations to the legislative and regulatory focus on land use, this conference promises to deliver the most up to date thinking about the politics driving these policies and will offer strategic discussion to set the course on how industry can proactively be at the table and positively influence policy. Click here for registration and discounted room rates. Please contact Melissa Martinez or click here.
 

BOMA CALIFORNIA 2009 CALENDAR

NOVEMBER 2009

November 5—
BOMA CA BOARD MEETING & ELECTION OF 2010 OFFICERS
Meritage Hotel, Napa, CA
1:30 p.m. - 4:00 p.m. (note new time)

 November 5-6—
COMMERCIAL REAL ESTATE STRATEGIC ISSUES CONFERENCE
Meritage Hotel, Napa, CA