California Business Properties Association

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CBPA STAFF




Matthew Hargrove

President & CEO



Rex W. Hime

VP Strategic Communications



Crystal Whitfield

Executive Assistant



Rex S. Hime

Senior Advisor

CBPA

Weekly Update

September 16, 2022

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  • LA TAX MEASURES TARGET REAL ESTATE


  • RAIL SHUTDOWN AVERTED



  • CALIFORNIA BUILDING STADNARDS COMMISSION - EV WORKSHOP


  • GOV NEWSOM SIGNS CLIMATE LEGISLATION


  • GOV NEWSOM VETOES MANUFACTURING TAX EXEMPTION


  • ICYMI: END OF SESSION UPDATE - 2 WEEKS LEFT FOR GOV NEWSOM TO ACT



  • 2022 CBPA CALENDAR

LA Tax Measures Target Real Estate

The city of Los Angeles has two tax measures on the November that seek to raise $1.1 billion in taxes from property owners. Below is a brief description of the two measures:

 

  • Measure SP – Parks & Recreational Facilities Parcel Tax - $227M/year for 30 years ($6.8 billion)
  • Ordinance ULA -- by “United to House L.A.” - $800M/year on ALL properties -commercial and residential 
  • 4% transfer tax on properties above $5M
  • 5.5% transfer tax on properties above $10M 

 

ULA and SP will drive up the cost of everything we buy and use – from housing to groceries, and from gas to daycare – and will drive up costs for renters and small businesses by at least 6% a year.

 

And make no mistake, ULA and SP will drive up the property taxes of every homeowner in Los Angeles, dismantling decades of Prop 13 protections!

 

With inflation raging at 9% a year, we should not raise any property taxes that make it more expensive to live or work in Los Angeles!

 

CBPA is helping lead the effort to defeat both measures. To help protect our members in Los Angeles against these outrageous tax increases, we are an active member of the Angelenos Against Higher Property Taxes – No on ULA and SP Committee, which has just launched.


Visit the website and stay tuned for how you can help in this battle.

Rail Shutdown Averted

Freight railroads and their unions reached an agreement, averting a strike that would have brought the 140,000-mile freight rail network to a halt. As we know all too well in California, stopping the supply chain, even for a short period, is detrimental to the economy and everyday Californians.


From agriculture to industrial industries, rail helps move goods for everyone from retailers to builders to keep costs down and supply up.


We are Co-Chairs of the Goods Movement Alliance, which made a huge difference by having a coordinated and quick response from the business community averting this potential rail shut down.

 

The GMA issued a letter to congress urging this crisis to be avoided, and we are once again seeing this coalition make a difference.


California is facing a crisis of crises at nearly every level of our transportation infrastructure that makes up the backbone of our economy. The impact of the supply chain crisis has touched almost every Californian as soaring transportation costs and continued disruptions are helping fuel record high inflation that's disproportionately hurting our working families.


Now is the time for you to Join the GMA!

California Building Standards Commission -

EV Workshop

The California Building Standards Commission (BSC), the Division of the State Architect (DSA), and the Department of Housing and Community Development (HCD) staff will convene a CALGreen Electric Vehicle Workgroup meeting on September 22 from 9 a.m. - 2 p.m. comprised of interested parties and state agencies to provide input and feedback for future EV regulations in CALGreen.


The proposed regulatory updates may be considered for inclusion in the 2022 California Green Building Standards Code, Part 11, during the 2022 Intervening Code Cycle. The public is invited to participate and provide input and comments.


We will be at the workshops, but your direct input and participation is extremely important!


Click here for the Workshop Agenda and Notice


Click here for the Workshop Webpage

Gov Newsom Signs Climate Legislation

SB 1020 (Laird) Zero-Carbon Mandates, SB 1314 (Limon) Enhanced Oil Recovery, SB 1137 (Gonzalez) Oil Well Setback and AB 1279 (Muratsuchi) Carbon Neutrality by 2045, were some of the 40 climate package bills signed into law today by Governor Gavin Newsom.

 

Governor Newsom held a Press Conference today to sign some of this legislation with leaders and authors from the state legislature.

 

We know California will not stop taking aggressive action to thwart climate change, and we will continue to be advocating for common sense reforms in the future as bills like these continue to be introduced.

 

Stay tuned for more details on the 40 bills signed into law by the Governor today.

Gov Newsom Vetoes Manufacturing Tax Exemption

Governor Newsom unfortunately vetoed AB 1951 (Grayson), also issuing a statement on the action.

 

The tax credit expansion in AB 1951 would have encouraged companies to grow here and invest in California manufacturing. The bill would have sent the proper signal to manufacturers that California is serious about retaining and attracting high-quality jobs and production.

 

California’s manufacturing industry remains at the forefront of global leadership and innovation, but the industry hasn’t kept pace with the rest of the country in job growth and investments. Thirty-eight states already fully exempt manufacturing equipment purchases from sales and use tax while California does not.

 

We will continue to work with our partners at CMTA and the business community going forward to address this issue in California.

ICYMI: End of Session Update - 

2 Weeks Left for Gov Newsom to Act

The Governor has until September 30 to sign or veto bills passed by the Legislature before Sept. 1 and in the Governor’s possession on or after Sept. 1. The Governor has already acted on some which you can read more on above.

 

Below, find a focused list of priority bills that we worked on to advance or protect the office, industrial, and retail real estate industry. Many are now on the Governor’s Desk awaiting veto or signature. Many others did not make it through the Legislative process but rest assured – they will be back.

PRIORITY BILLS

2022 CBPA Calendar

Tuesday, November 15


CBPA Board Meeting: 1:30 p.m. – 4:30 p.m.

Zoom

 

For more information on any of our events, please contact Crystal Whitfield at 916-443-4676 or cwhitfield@cbpa.com.

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