In This Issue:

• BALLOT ATTACK ON PROP 13 AVERTED – FOR NOW

• LEGISLATIVE ATTACKS ON PROP 13 CONTINUE

• AB 2492 LEGISLATIVE VEHICLE FOR SPLIT ROLL?

• AB 2640 PROPOSES REPEAL OF LIKE KIND EXCHANGES

• 2010 LEGISLATION – NEED YOUR HELP

• CAMPAIGN RESOURCE WEBSITE

• COURT UPHOLDS CHARGING FEES TO PROJECT OPPONENTS

• GREEN CALIFORNIA SUMMIT & EXPOSITION – FREE PASS

• CALGREEN WORKSHOPS AND EDUCATION

• UPCOMING 2010 NATIONAL LEGISLATIVE EVENT

• CBPA 2010 CALENDAR

BALLOT ATTACK ON PROP 13 AVERTED – FOR NOW

As we have previously announced, efforts to push two propositions to gut Proposition 13 protections for commercial real estate have been put on hold for 2010. The facts are clear that because we alerted, informed, and energized our industry, created a broad coalition, and raised early money, proponents of the measures saw a very tough campaign ahead.

Californians Against Higher Property Taxes , brought together homeowner, small business and taxpayer groups to oppose these proposals. Your generous donations assured that we had an active campaign infrastructure, were able to conducted economic studies, and allowed us to communicate flaws of the split roll idea to press and policymakers. Facing such organized opposition, the split roll proponents penciled-out the campaign and determined the fight would be too expensive with no guarantee of success.

Early financial support allows our industry to avert a very expensive campaign. Additionally, those who stepped up assured that your property taxes won’t be raised a minimum of 55% in perpetuity, for at least another two years.

Congratulations and THANK YOU!
 

LEGISLATIVE ATTACKS ON PROP 13 CONTINUE

But in politics no bad idea is ever truly dead. Hardcore believers that raising your property taxes is a good thing are undaunted by their leader’s better judgment and are looking for other avenues of approach. Rumor has it that an Assemblymember from San Francisco has agreed to champion split roll in the Legislature and will carry the battle cry that “business isn’t paying enough.” Click here to read a story about potential legislation to change Prop. 13 and raise your property taxes through a split roll.
 

AB 2492 LEGISLATIVE VEHICLE FOR SPLIT ROLL?

Here is a press release from Assemblymember Tom Ammiano (D-San Francisco) touting his desire to change Proposition 13 and create a split roll.

The bill, most likely to become a vehicle for the action above, seems to be AB 2492. The measure is currently just “intent” language, so we will track it closely for amendments.
 

AB 2640 PROPOSES REPEAL OF LIKE KIND EXCHANGES

Although, we ran this item last week, we have had so many inquiries about the bill, we are including it once again. It is estimated that this bill is at least a $350 million tax increase on our industry.

A recently introduced piece of legislation in California is causing much consternation in the real estate industry. If enacted, AB 2640 (Arrambula; D - Fresno) would repeal Internal Revenue Code Section 1031, for California income tax purposes. The repeal would be effective for taxable years beginning on or after January 1, 2010. Besides Section 1031, AB 2640 would apply to and would repeal non-recognition treatment for, among others, involuntary conversions, for certain seller reacquisitions of real property and for transfers of property between spouses.

If enacted, the bill could significantly increase the California income tax of taxpayers who engage in previously tax-deferred transactions. Also, because AB 2640 creates a divergence between the Federal and the California income tax laws that apply to those taxpayers, enactment would probably increase the complexity and cost of preparing their Federal and California income tax returns.

CBPA is coordinating an industry-wide response to this measure, building a coalition to oppose, and will fight through the legislative process to stop this proposal. Click here to read AB 2640 (Arrambula).
 

2010 LEGISLATION – NEED YOUR HELP

In 2009, CBPA followed more than 500 bills that had a potential impact on our industry. Many of those bills do not make it through the process or were amended in a way that resolves our concerns. Now, the cycle starts over again. We are reading every bill and trying to identify issues that will impact our industry -- however, we may not catch everything and need your help.

As you go about your business, talking with colleagues at Chamber lunches, your tax lawyers, reading newsletters from other organizations you are involved with or with local policymakers, if you hear of any bill that you are concerned with, please let us know. Simply send a note to Matthew Hargrove with the bill number, or just the subject matter, and we will research it. We would rather get 100 notes asking us to follow something important, than allow an item to slip through the cracks.

An industry-wide meeting with representatives from all the major commercial real estate groups active in California will meet on March 10 to review all bills and set policy direction. If you are interested in participating please let us know.
 

CAMPAIGN RESOURCE WEBSITE

The California Chamber of Commerce (CalChamber) has developed a website as the “go-to” resource for information on California’s gubernatorial candidates, CalChamber2010.com . This resource provides first-of-its-kind comparisons of the three candidates. And the site doesn’t deal with social issues; rather, it focuses on issues of critical importance to the state’s economy and job climate: Budget and Spending; Jobs and the Economy; Taxes; Education; Health Care; Environment and Energy; Water; Public Safety; and Housing and Transportation. We thank the CalChamber for putting this resource together!
 

COURT UPHOLDS CHARGING FEES TO PROJECT OPPONENTS

Our friends at CBIA bring us the following legal update: The Second District Court of Appeal has approved a city’s right to charge a fee to a project opponent who appeals its CEQA decision from a planning commission to a city council.

In Friends of Glendora v. City of Glendora, the City’s approval of a negative declaration (ND) pursuant to the California Environmental Quality Act (CEQA) for a 125-bed assisted-living facility was challenged by neighbors of the project. After the planning commission approved the CEQA document, the opponents filed an appeal to the City Council. The City charged them $2,000 for the administrative costs of the appeal. The opponents paid the fee under protest.

The City Council approved the ND as well, and the opponents went to court. The opponents claimed that the City should have prepared an environmental impact report rather than a ND. They also claimed that they should not have been charged any fee because as a member of the public they were in a privileged position, and the imposition of a fee was just a scheme for taxing the public into silence and submission.  The court found that CEQA authorizes the imposition of a fee for procedures such as an appeal and there is no indication the Legislature intended to prohibit the imposition of a fee upon project opponents.

Click here to read the complete court decision.

GREEN CALIFORNIA SUMMIT & EXPOSITION – FREE PASS

CBPA is a proud sponsor of the 2010 Green California Summit & Expo taking place at the Sacramento Convention Center March 15-17. The event is shaping up to be the biggest green government conference ever. Over 200 suppliers of green products and services and upwards of 6,000 attendees are expected. The Summit will feature keynote speakers, an educational program of full-day workshops, concurrent sessions, product showcases and networking opportunities. For information and to register, click here. When registering use the code “CBPA” for our sponsor’s discount.

Free pass for Exhibit Floor and Keynote Speeches, click here.

 

CALGREEN WORKSHOPS AND EDUCATION

The mandatory provisions of the CALGreen will be upon us before you know. Get ahead of the curve and start getting key people in your company's up-to-speed. Here are two upcoming opportunities:

The California Building Standards Commission, Department of Housing and Community Development, Office of Statewide Health Planning and Development, and the Division of the State Architect will present multiple opportunities at the Green California Summit and Exposition to learn about the voluntary and mandatory provisions of the 2010 California Green Building Standards Code (CALGreen) which go into effect in January 2011.

The 2010 code will affect new residential, commercial, school and hospital construction. Requirements for construction waste reduction, disposal and recycling; and low-emitting building materials are just two examples of new mandatory measures. Representatives from each occupancy group will present this vital information and provide a clear understanding of the mandatory standards, voluntary tier structure, compliance checklists and code availability. In addition, the representatives will provide answers to your specific code questions.

1. CALGreen Pre-Summit Workshop, Monday, March 15, 9:00a.m.-4:00p.m.

This comprehensive full-day workshop will identify and explain the voluntary and new mandatory provisions of the California Green Building Standards Code (CALGreen), which go into effect in January, 2011.

2. CALGreen Education Session, Tuesday, March 16, 10:45a.m.-noon

This session will provide an overview of the 2010 California Green Building Standards Code (CALGreen), which goes into effect in January 2011.

Register by clicking here. Remember to use the code "CBPA" to get a discounted rate.
 

UPCOMING 2010 NATIONAL LEGISLATIVE EVENT

ICSC - Strategic Leadership Summit
March 15 - 17, 2010
Willard Inter-Continental Hotel, Washington, DC
 

CBPA 2010 CALENDAR

March 10, 2010
CBPA Legislative Committee Meeting
Cox, Castle & Nicholson, Los Angeles

June 22-23, 2010
Annual CBPA Board Meeting &
CA Commercial Real Estate Summit
The Hyatt Regency, Sacramento

October 21, 2010
CBPA Board Meeting
&
CBPA Industry Awards Dinner
The Fairmont Hotel, Newport Beach