Archive for the ‘Western’ Category

Tucson All-In on Downtown Business Incentives

Friday, May 10th, 2013

Tucson, Arizona City Council has voted in favor of an incentive that when finished will waive property taxes for a multi-million dollar downtown development. According to Inside Tucson Business, the deal, a Government Property Lease Excise Tax Incentive, would exempt the developer of the 196-unit downtown student housing development The Cadence from paying property taxes for eight years. Costs of the development are estimated to be around $34 million.

The backbone of the agreement will give the city ownership of the properties during the eight years in which it will be exempt from property taxes. The ownership would be strictly for tax purposes, where the management and care of the property would still be the responsibility of the developer. The short-term benefits for the city should come in the form of new jobs and a spike in sales tax due to retail activity, and the long term should bring increased value in the properties that would provide greater property tax revenue in the future.

To read the full article from Inside Tucson Business, click here.

Posted in Construction, Economy, Multi Family, Real Property, Student Housing, Western | No Comments »

Office Demand Still Catching Up With Job, Business Growth

Friday, May 3rd, 2013

Although the average employment rate of nationwide office is growing at a little over 2%, demand for that space grew at half that rate during the first quarter. According to the CoStar Group, despite moving in fits and starts, the recovery has helped stabilize the office market and support relatively high property valuations, but at the same time, modest job growth seen to date has yet to translate into meaningful demand for office space, causing rents to remain at ‘discount’ levels.

In order for things to really turn around, and for office operators to be able to charge higher rents, a lot of the excess space left over from the downturn must be eaten up. This process could take some time. Many believe that the office vacancy recovery is less than halfway done, and as it stands, there is more upside in the office sector than other areas of commercial real estate.

To read the full article from the CoStar Group, featuring insight from Paradigm Tax Group, click here.

Posted in Economy, Leased, Office, Paradigm Info, Real Property, Western | No Comments »

Final Property Tax Bill Advances in Montana House, Senate

Thursday, April 25th, 2013

A proposed bill to lower the property tax on business equipment has advanced in the Montana House and Senate this week. According to the Missoulian, Senate Bill 96 aims to exempt from property taxes the first $100,000 worth of business equipment, up from the current $20,000. Additionally, the tax rate would go to 1.5% for the first $6 million worth of equipment, an increase from the current $3 million.

If passed, SB96 is expected to save businesses in Montana $17.5 million over two years. While it is still premature to consider the bill passed, both sides seem to agree that it is worthwhile in the fact that it helps out both small and mid-sized businesses.

To read the full article from the Missoulian, click here.

Posted in Complex, Economy, Industrial & Manufacturing, Personal Property, Western | No Comments »

Enforcing “Transparency” in CA Property Tax Consulting Industry

Wednesday, April 24th, 2013

Due to the on-going political scandal in the Los Angeles County Assessor’s Office and the backlash of negative press resulting from the case, the Los Angeles County Board of Supervisors has proposed an ordinance to monitor and enforce more “transparency” in California’s property tax consulting industry. The Los Angeles District Attorney has described the scandal as a “pay to play” scheme involving campaign contributions to the Assessor in return for lowered property tax assessments for those same contributors.

AB 1151, introduced by Assembly member (and former San Francisco Assessor-Recorder) Phil Ting (D-SF), is attempting to generate the desired transparency by establishing a standardized, statewide property tax agent registration system that will be accessible by the public. The legislation is being considered by various committees and is subject to numerous revisions.

To read the full article from Paradigm Tax Group, click here.

Posted in Financial Services, Paradigm Info, Real Property, Western | No Comments »

Another Assault on Proposition 13?

Tuesday, April 23rd, 2013

In an effort to potentially raise billions of dollars in commercial property tax, California lawmakers are considering making controversial changes to Proposition 13. Under current law, dating back to Prop 13’s passage in 1978, property taxes are only reassessed upon transfer of ownership or, if title is held in a legal entity, change of control (obtaining a greater-than-50% ownership interest) in the legal entity. Once re-assessed, values cannot increase more than 2% annually. However, proposed legislation (AB 448) introduced by Assemblyman Tom Ammiano would not only require assessors to revalue targeted commercial properties more frequently, but would also bring them up to current market values. Under Ammiano’s bill, publically-traded companies would have their real estate assets reappraised every three years based on the notion that more than 50% of their issued stock trades over that period of time.

To read the full article from Paradigm Tax Group, click here.

Posted in Economy, Paradigm Info, Real Property, Western | No Comments »

Rising Real Estate Values not Helping US Cities Revenues

Friday, April 5th, 2013

The gradual real estate recovery across the nation has yet to lift the property tax revenue of many cities, a bad sign for municipalities that rely on taxes as their chief source of income. According to the National League of Cities in their survey of local economic conditions, officials in 65% of the cities consider commercial property vacancies a problem, and those in 57% say commercial property values are still a concern. The 18-24 month lag between real estate market improvements takes time to register in local budgets and coincide with property tax collections.

As collections continue to try and catch up with market conditions, another decline in tax revenue is expected in 2013. Survey respondents also expressed concern over a new surge in consumer confidence, which has helped local sales tax collections, not lasting. The retail sector especially continues to be a drain financially on many municipalities.

Posted in Eastern, Economy, Mid America, Real Property, Western | No Comments »

Idaho House and Senate Pass Personal Property Tax Repeal

Thursday, March 21st, 2013

The Idaho House has passed a bill that would exempt 90% of Idaho businesses from personal property taxes. According to MagicValley.com, the passage came after a short debate, with most lawmakers speaking in favor of the repeal, and will now move on to the Senate for consideration. This was the third personal property tax repeal proposal the House had considered, with the first two receiving no votes during their public hearings.

The bill was crafted by the Idaho Association of Counties, and would exempt the first $100,000 of a business’s appraised personal property tax per county, and would extend to operating property like telecommunications. The state would replace any lost revenue for local government entities at a cost of approximately $20 million a year.

UPDATE: On March 26th the Senate unanimously passed House Bill 315. The Bill will allow an exemption from the tax for businesses in the state on the first $100,000 worth of purchases of personal business property, and businesses would also be exempt from paying the tax on new purchases of items costing less than $3,000.

Posted in Complex, Economy, Industrial & Manufacturing, Personal Property, Western | No Comments »

Competing Personal Property Tax Repeal Measures in Idaho

Thursday, March 7th, 2013

The Idaho House is set to introduce two competing bills, one backed by counties, one by industry, which will cut the state’s business personal property tax. According to magicvalley.com, Rep. Gary Collins, House Revenue and Taxation Committee Chairman, will schedule the hearings by the end of the week.

The first bill, from the Idaho Association of Counties, would eliminate the tax for 89% of businesses in Idaho and mirrors a 2008 law that has yet to take effect. The total cost to the state would be around $19 million in lost revenue. The other bill, from the Idaho Association of Commerce and Industry, could cost up to as much as $120 million. The IACI bill would only allow for regulated utilities to get the break on new equipment.

Posted in Complex, Economy, Industrial & Manufacturing, Personal Property, Western | No Comments »

San Jose High-Rise Incentives Extended after Early Success

Thursday, February 28th, 2013

The deadline for San Jose, California high-rise developers to obtain a certificate of occupancy in order to qualify for an incentive program that will cut fees has been extended to August 31, 2016. According to the Silicon Valley Business Journal, in addition to cutting construction taxes for qualified San Jose high-rise projects in half, the incentives reduce park fees, eliminate requirements for fire-control systems and guarantee that application review will take less than 120 days.

The original purpose of the incentives was to spur high-rise development. The results to date have been so positive that the deadline was extended almost three full years. One specific project has reaped direct benefits of reducing their construction taxes from $1.56 million to $735,000 with the incentives. Several other examples are being realized across the city, and these cases are expected to generate more interest in development.

To read the full article from the Silicon Valley Business Journal, click here.

Posted in Construction, Economy, Multi Family, Office, Real Property, Western | No Comments »

More Colorado Business Personal Property Tax Measures Die

Friday, February 22nd, 2013

Despite the unanimous backing of legislative attempts to relieve business personal property taxes for businesses who are threatening to leave Colorado, two more such measures have recently fell by the wayside. According to the Denver Business Journal, of the five bills introduced this session to reduce the burden of the much hated tax, four are now dead, despite acknowledgements even from many opponents of the bills who have admitted that the state needs what they are proposing.

As it stands, Colorado exempts companies that have $7,000 or less of business equipment from paying personal property taxes, while companies who are over $7,000 have to pay the full value. Still, the detractors are concerned that any new legislation decreasing the amount of taxes businesses pay will take revenues from local cities, counties, special districts, and school districts to the tune of about $4.6 million a year.

To read the full article from the Denver Business Journal, click here.

Posted in Economy, Personal Property, Western | No Comments »

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