Tennessee officials have proposed legislation that would increase taxes on solar and other renewable energy property. According to Nooga.com, supporters of the proposal said the current law needs to be changed because the tax is so small it is the "practical equivalent of an exemption," which is unconstitutional. The constitution of the state of Tennessee says that all property is subject to taxation. Thos in opposition believe that the change would hurt solar energy system owners by imposing a larger property tax.
With shopping center owners continuing to feel the effect of the recession, they must take the necessary steps to increase the efficiency of their operations. Jack Halpern, chairman of Atlanta-based Halpern Enterprises, which owns 3.4 million square feet of leasable space in 33 retail properties, recently gave five tips that have helped them keep their properties running as efficiently as possible:
Paradigm Tax Group is pleased to remind you that the property tax appeal deadline for properties located in several areas are coming up within the week:
Certain dividend-paying REITs are in position to perform very well financially as commercial real estate fundamentals continue to improve. According to analysis from Turner Investments, it's little surprise that REITs are catching investors' attention as bonds are offering yields that aren't keeping pace with inflation.
The economic downturn over the past three years has slowed construction activity considerably, but recent numbers show that the industry is starting to recover. According to the American Institute of Architects, non-residential construction will increase by a modest 6.4% in 2012 while sustainable building projects will continue to grow at a healthy pace. These days, sustainable, energy-efficient buildings carry more perceived value in addition to being cheaper to develop when using a "green" mentality consisting of fewer materials.
A judgment setting aside a tax deed on the grounds that the auditor’s effort to notify the property owner of the Indiana property tax sale was constitutionally deficient for failing to meet the requirements of due process was reversed. The auditor sent notice by certified mail; conducted a title search; and published notice in the newspaper, on the auditor’s website and on a bulletin board outside the county clerk’s office. The trial court, however, incorrectly concluded that these methods were constitutionally deficient because there were additional reasonable steps that the auditor could have taken to attempt to provide notice to the original owner before selling the property.
During a meeting with Michigan local government leaders, Lt. Gov. Brian Calley stated that the Governor's administration is against constitutionally guaranteeing that lost tax revenue would be replaced. The end goal is to completely eliminate personal property taxes on industrial equipment, which the administration is committed to replacing. But according to Crain's Detroit Business, a constitutional guarantee that the funding will be replaced is "a bit overboard."
Sears Holdings has hired David Lukes to head up real estate development and look for ways to use properties that are no longer being used as retail stores. Lukes is a chief executive at Mall Properties Inc., a New York-based real estate firm with a commercial property portfolio worth $3 billion.
Bills to lower the tax rate on manufacturing, commercial, and rental property in South Carolina are up for debate by a House panel. The proposed bills are set for subcommittee discussion, and are part of a tax reform package introduced last week by the House Republican Caucus. Ultimately, if passed, they would directly lead to reduced local government revenue.
Distressed commercial real estate in the United States continues to fall from its $191.5 billion peak in March of 2010. According to The Washington Post, properties in default or foreclosure and real estate taken over by lenders totaled $166.9 billion in January 2012, down $4.7 billion since October 2011. Several factors are leading to the decline, including lenders extending debt obligations and commercial property values stabilizing, if not rising, making them no longer worth less than their loans.
A number of uncertainties surround the health care industry and its real estate providers in the near future. According to Richard Taylor, Managing Director with Jones Lang LaSalle's Healthcare Solutions Group, there are three pressures contributing to the uncertainty for owners and operators of health-care real estate: (1) The multitude of laws inside the health-care reform bill that aren't understood or created yet; (2) Unemployment that leads to lower revenue for hospitals; and (3) Deficit reduction that will affect the key sources of revenue for the health-care industry.
Several demand drivers are placing the hospitality sector in a position for robust growth in the near future. According to Marcus & Millichap's Research Quarterly Update, forecasts for the hospitality sector expect an overall 60.7% occupancy, an average daily rate of$105.70 and RevPAR of $64.21 by the end of 2012, up from 60.1%, $101.60, and $61.06 respectively in 2011. Still though, a couple risk factors exist that investors should be wary of.
Legislation that will allow Colorado municipalities to control how much of the business equipment taxes they want to exempt has been given preliminary approval. According to CBS News, The legislation would give municipalities the choice to exempt all taxes on equipment, including office furniture, for new businesses where the current law caps such exemptions at 50%. While the Senate is opposed to the legislation because it will take away from funds for the state and school districts, proponents claim the new business and expansion it will create will benefit all in the long run.
According to Economist Matthew Gardner, developers are over-building in and around the downtown Seattle, Washington-area and are highly recommended to avoid future projects. Still though, some other market observers remain confident that more apartment space can be filled due to recent job growth projections. That being said, many of the new developments are targeting the 20- and 30-something demographic and are hitting the market at the same time, a combination that may lead to there not being enough demand.
Build-to-suit properties occur when a retailer, unconcerned with resale value, develops a building to suit their needs in order to meet the same design as their other properties nationwide. Rather than simply redeveloping existing buildings, these retailers are willing to pay well over market value to develop the type of layout they want. According to RE Business Online, in a typical build-to-suit, a developer assembles land to acquire the desired site, demolishes existing structures and constructs a building that conforms to the national prototype store design of the ultimate lessee.
The Florida Senate has unanimously voted on a proposed amendment on the ballot that would cut property taxes on machinery, furniture and other tangible business personal property. The measure would immediately remove from the tax rolls any business accounts with $50,000 or less worth of personal property, which would ensure that the estimated $20 million in annual tax savings would go to smaller businesses. The proposal would also give cities and counties the ability to create larger such cuts in the future.
As outlined in the Massachusetts General Laws Chapter 59, Section 38D, assessors in the state of Massachusetts have the ability to request physical and financial property information from its owner. Most of these requests come during the first quarter of the calendar year, but can be made any time at the assessor's discretion. Assessors use this information in order to develop valuations for the following fiscal year's property value assessments.
The market for apartment buildings in the United States is climbing while the homeownership rate hovers at its lowest point since 1998. According to Bloomberg, government-supported mortgage companies have provided record levels of financing for apartment properties which is fueling a rush of investors to buy buildings and helping lenders recover 75% of the value of defaulted mortgages tied to multifamily housing, the highest recovery rate of any type of commercial property.
Milford Township in Michigan is getting stuck with a $513,000 property tax bill after agreeing with General Motors to reduce the property taxes at the GM Proving Ground. Milford is also on the hook to pay a portion of taxes paid from 2009-2011 by the automotive company. According to the Observer and Eccentric, the agreement resolves a dispute over property values initiated in 2009 by GM, which argued its assessments were too high. While still substantial, the slightly more than 30% reduction per year for the past three years is far less than the 80% cut per year GM was after.
Commercial real estate experts are projecting that 2012 will be a good year for those wanting to buy or rent office or industrial space in the St. Louis, Missouri area. The St. Louis President of The Society of Industrial and Office Realtors says that retail is the only commercial real estate sector that is not likely to improve this year. According to KMOX, most retail businesses are likely to spend their money on improving their current space, rather than expanding.