The Chapter actively participates in the work of the California Business Properties Association (CBPA), the designated legislative advocate for the NAIOP of California and other industry associations. CBPA represents over 10,000 members, making it the largest consortium of commercial real estate professionals in California.
The Government Affairs Committee helps to shape our chapter activities through legislative contacts, educating our membership on the legislation that confronts our industry, and liaising with NAIOP’s San Francisco, Sacramento and D.C. lobbyists.
For the latest updates, visit the Legislative News section of the website. There you will find the weekly updates provided by our Sacramento lobbyists as well as a one-page summary curated by this committee to keep our members informed.
Government Affairs Committee Co-Chairs:
Tess Brandwein, Shartsis Friese LLP
Justin Shapiro, Long Market Property Partners, LLC
The ballot initiative would amend the state constitution to require commercial and industrial properties (with certain exceptions) to be taxed based on current assessed market value. The tax would generate $11-$12 billion for schools with implementation costs estimated at $1 billion.
Current Ballot Measure:
• $2 million property value threshold for re-assessment.
• January 1, 2020 Effective Date. 2020/2021 Tax Base Year with re-assessment every 3 years and 3-year phase in.
• Property owners operating their own business on a majority of a property are exempt.
• Funds allocated to general fund.
Proposed Replacement Ballot Measure*:
• $3 million property value threshold for re-assessment.
• January 1, 2022 Effective Date. 2022/2023 Tax Base Year with re-assessment every 3 years and 3-year phase in. Small business delayed until 2025/2026 tax year.
• No exemption for owner – operators.
• Funds allocated to education.
Status/Timing: November 3, 2020 Ballot*
*A replacement ballot measure has been circulated to replace the current version. It is pending receipt of approximately 1 million signatures to replace the original.
Congress should pass legislation that restores the original intent of the Tax Cuts and Jobs Act, and allows businesses to recover investments in Qualified Improvement Property over a period that reflects the true economic life of the asset. Restoring the preferential tax treatment of incentives offered by public entities ensures that local investment dollars are fully leveraged, and that these funds are appropriately directed towards much-needed development projects.
Infrastructure and Transportation
NAIOP supports increased investment in our nation’s infrastructure and transportation systems. We favor direct federal support and investment for transportation and infrastructure projects of national importance, a streamlined and transparent regulatory environment, and fair tax treatment of foreign investment in infrastructure projects. The use of public-private partnerships (P3s) should be increased to provide additional funding sources for infrastructure development.
Energy Efficiency and Environment
Federal legislation advancing building code efficiency goals should be based on economic and technological feasibility. Incentive-based and voluntary approaches to advancing energy efficiency, such as EPA’s Energy Star Portfolio Manager, should continue. NAIOP supports commonsense reforms to the Endangered Species Act (ESA), which codify and incentivize voluntary conservation efforts, and curb abuse of the Act by reducing instances of false reporting.