CBPA's California Legislative Update 2/18/2022
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INDUSTRY AWARDS DINNER & CBPA’S 50TH ANNIVERSARY – HOTEL ROOM BLOCK EXPIRING
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BILL DEADLINE TODAY
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WEALTH TAX INTRODUCED
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NET OPERATING LOSS CARRYBACK
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CBPA 2022 CALENDAR
INDUSTRY AWARDS DINNER & CBPA’S 50TH ANNIVERSARY – HOTEL ROOM BLOCK EXPIRING
As you know, Industry Awards Dinner & 50th Anniversary Celebration are being held on Thursday, March 24th at the Renaissance Hotel in Newport Beach. This is the biggest commercial real estate event of its type on the West Coast and will bring together leadership from all the major national associations (BOMA, NAIOP, ICSC), as well as executive leaders from many owner/manager companies as well as some of the major tenants in our industry.
This is a friendly reminder…
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BOOK YOUR HOTEL ROOM as the CBPA discounted room rate expires next Wednesday, February 23!
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CLICK HERE to register for the Awards Dinner, if you haven’t already.
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It’s NOT too late to sponsor this event or purchase ad space in the 50th Anniversary Dinner Program! In order to meet the printing deadlines, ads are due by February 25. See sponsorship and ad specs here.
The following peer-nominated awards represent the highest recognition given to industry leaders in the State of California:
The Ernest W. Hahn Memorial Award honors our founder’s many contributions to the real estate industry. The award is given to an individual and/or organization that go above and beyond the call of duty to impact legislative, regulatory, or public policy issues on behalf of our industry.
NewMark Merrill along with Sandy Sigal went above and beyond writing a check to defeat Prop 15 defending our industry from Split Roll Tax in 2020. From pushing for more signage at their properties, advocacy, and press – NewMark Merrill undoubtedly impacted our successes on the ballot in 2020.
Honoree: NewMark Merril, Sandy Sigal
The John Caldecott Memorial Award honors the unfaltering lifelong community service provided by John Caldecott through his service in the Salvation Army. The award recognizes an individual and/or organization that advances our industry through community service to others.
Kilroy Realty Corporation (KRC) is committed to being a real estate leader in innovation and sustainability. Part of that commitment is investing in our communities and future leaders. KRC seeks to address issues and needs aligned with our goals and objectives through financial support of education and community enrichment programs. KRC provides financial assistance to accredited schools and 501(c)(3) nonprofit organizations that work to produce programs and projects centered around community enrichment.
The Ray Magnussen Memorial Award honors Ray Magnussen who, as a provider to our industry, lead a statewide effort of advocacy to help fight issues facing all of us. The award is given to an individual service provider and/or organization that goes above and beyond the call of duty to impact the commercial real estate industry.
Sarahann spent countless hours providing legal guidance to our industry while navigating through the eviction moratoriums that took us by storm because of the pandemic. We were able to defeat legislation threatening our industry like SB 939, thanks to Sarahann Shapiro.
Honoree: Sarahann Shapiro, Pahl & McCay
Champion of the Industry Awards are presented to individuals and/or companies who have dedicated themselves to the improvement of the commercial, industrial, and/or retail real estate industry in California through the development of projects that stand-out for their innovation, attraction, and versatility.
Mr. Horne is passionate about collaboration and actively promotes the integration of multiple disciplines to ensure well-conceived, strategic solutions for complex client assignments. This passion led him to becoming an early adopter and champion for workplace transformation, including Workplace Strategy, Experience Consulting, Change Management and Occupancy Management.
BILL DEADLINE TODAY
The deadline for legislation to be introduced is today. Because of COVID there was a pent-up demand for action in the Capitol, and we are seeing a return to the masses of introductions as we have grown accustomed to in Sacramento.
Just a week ago there were 550 bills introduced. That number has exploded this week.
With one day left, there have been over 1,400 total bill introductions so far, including over 850 just this week. Of those 1,400 introductions, over 100 are intent bills and over 250 are spot bills.
We are seeing everything from EV Charging, Rent Control, Parcel Taxes, Small Business Relief, Greenhouse Gas and Transportation issues to Housing and many more impactful industry topics.
Your team in Sacramento is diligently reading through the troth of bills and will be identifying any and all that impact our industry and California’s business climate. Stay tuned as we dive into all of it and look for your input.
WEALTH TAX INTRODUCED
Earlier this week Assemblymember Lee introduced AB 2289 to create a wealth tax in California. The bill requires a 2/3 vote for passage out of both houses of the Legislature. Chris Micheli broke down some of the specifics of this proposed legislation in his blog, as he explained:
There would also be imposed an excise tax of 1.5 percent upon the worldwide net worth of every resident in this state in excess of:
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For married taxpayers filing separately, $500,000,000.
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For all other taxpayers, $1,000,000,000.
For tax years beginning on or after January 1, 2025, there would be imposed an excise tax of 1 percent upon the worldwide net worth of every resident in this state in excess of:
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For married taxpayers filing separately, $25,000,000.
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For all other taxpayers, $50,000,000.
In addition to the tax imposed above, there would also be imposed an additional 0.5 percent surtax, for a total combined tax rate of 1.5 percent, upon the worldwide net worth of every resident in this state in excess of:
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For married taxpayers filing separately, $500,000,000.
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For all other taxpayers, $1,000,000,000.
To read Micheli’s entire piece on AB 2289, click here.
With a record surplus because of California’s top 5% of high-income earners, as they account for about 2/3 of the total personal income tax revenue in California, it is not advantageous to take more from this sector of Californian’s. These are the people who have the resources to leave, and if the increased taxes drive them out, the Californian’s remaining will be footing the bill. We will be continuing to report on this so stay tuned.
NET OPERATING LOSS CARRYBACK
This week Assemblywoman Blanca Rubio introduced AB 2065 to allow a net operating loss (NOL) carryback for an NOL or NOL carryover for which a deduction was suspended for a qualified taxpayer.
NOL’s were suspended because of an anticipated budget deficit, but now that we have seen recurring surpluses in the budget this idea needs to be readdressed. Our industry has been fighting for this along with others in the business community for quite some time now, including supporting SB 113 that will reinstate these tax reliefs.
What this bill does that other pieces have not, is carry back to the previous years to allow some recouping of monies that were not necessary to collect and could be hurting businesses and investors in California.
Beginning on January 1, 2023, this bill would carry back net operating losses denied for the 2020 and 2021 tax years – ensuring California’s acute revenue needs are satisfied while also ensuring these taxpayers are not unfairly taxed.
Stay tuned for more on this legislation as the process moves forward.
CBPA 2022 CALENDAR
Wednesday, February 16
Rex Hime’s Retirement Reception
Hyatt Regency Sacramento
Thursday, March 24
Industry Awards Dinner and CBPA Board Meeting
The Renaissance Hotel, Newport Beach
Thursday, April 7
CBPA Industrywide Legislative Meeting
Southern California
Tuesday, June 7 – Wednesday, June 8
California Commercial Real Estate Summit
and CBPA Annual Board Meeting
Sacramento
Tuesday, November 15
CBPA Board Meeting
Sacramento
For more information on any of our events, please contact Melissa Stevens at 916-443-4676 or mstevens@cbpa.com.
