A study conducted by the Pennsylvania Auditor General found Allegheny County as the top county in terms of losing the most annual tax revenue from exempt real estate. According to the Pittsburgh Business Times, "the Auditor General's review estimates that Allegheny County loses $619.7 million in real estate tax proceeds each year due to tax-exempt property, well over one-third of the more than $1.5 billion total lost by the 10 counties included in the research."
New Jersey Assemblyman Chris Brown has called for a 5-year property tax freeze in Atlantic City along with an even further drop in casino tax assessments. According to NBC 40, Brown claims that businesses in Atlantic City have already endured a 52% increase in their taxes over the past two years, and that a 5-year tax freeze would allow time for Atlantic City to cut costs and bring stability.
Recent findings from the Massachusetts Appellate Tax Court could provide solar developers statewide the opportunity to challenge their property tax payments. According to the Boston Business Journal, "the debate is whether solar arrays are subject to property taxes if the electricity they generate is used for power on property that's not located in the same place as the solar panels."
By Mark Whitney, Mountain States Area Leader, Phoenix
Idaho Governor, Butch Otter, along with other local business leaders, is once again calling for the state's personal property tax to be abolished. According to NPG of Idaho, the tax - often referred to as the business equipment tax - is levied on all property owned by businesses from heavy machinery to run-of-the-mill office equipment, which many feel makes the state unattractive to potential new businesses.
Boston has officially become a billion dollar city for the first time, as the total estimated value of its residential and commercial property jumped to $110 billion, according to a new city assessment. With the real estate market surging and driving up assessments, the increase will mean significantly higher tax bills for many property owners next year. While the tax rates have yet to be set, which will determine the extent of the increases, Boston's assessing department has already started warning property owners in areas where values have increased the most.
Property tax relief is Nebraska Farm Bureau’s top priority for the 2015 session of the Nebraska Legislature, due to concerns that ag land owners pay more than their fair share of property taxes. This week a panel of lawmakers were told that property taxes paid by Nebraska farmers and ranchers are two to three times higher than those paid by their counterparts in Iowa, South Dakota and Kansas, and the wide disparity calls for action by the State Legislature.
The Washington D.C. Economic Partnership (WDCEP) released its 2014/2015 Development Report this week, an annual collection of data providing key insights and highlights of D.C.'s major projects and upcoming development plans in the city. More than 100 developers, architects, contractors and economic development organizations contributed to the unbiased annual "development consensus," and this year's report contains both good and bad signals for the District. For the past three years, WDCEP has partnered with CBRE, a global real estate services and investment firm, to provide this economic overview of DC and in-depth analysis of the office, retail, hospitality, education, and residential markets. Despite a weakness in the local economy, the report found that the District is well-positioned for renewed growth and expansion, and there has been particular growth in the construction, retail, leisure, and hospitality sectors over the last five years.
As the 113th Congress wraps things up this week, they will vote on the House's government funding bill, which will fund most of the government through next September, and a House bill that will reinstate various expired tax breaks. According to the San Francisco Business times, the House did the bare minimum when it comes to so-called tax extenders — tax breaks that expired this year but usually are renewed from year to year. These breaks include incentives for business investment in research and development, and new equipment. The House bill reinstated these tax breaks for 2014, but didn't extend them for next year. That will reduce taxes for businesses that already made such investments this year, but with only three weeks left in 2014, it doesn't provide much incentive for new investments. Congress will revisit these tax extenders next year, perhaps in the context of comprehensive tax reform.
Categories: Real Property
The California State Board of Equalization has instructed California assessors to apply a 1.998% inflation factor when preparing their 2015/2016 assessment rolls. The 2015/2016 inflation index of 1.998% marks a steep increase from the 2014/2015 index of just 0.454%. The 2015/2016 tax year covers the period from July 1, 2015 through June 30, 2016.
In 2013, Minnesota legislators increased the local government aid program for cities by $80 million, touting a reduced property tax burden. The commissioner of the Minnesota Department of Revenue, however, warns taxpayers to be skeptical of the likelihood of state aid actually decreasing the tax levies, as it is up to local officials to set the local levies and amounts.
The flood of equity financing available in the hotel market is driving pricing up, dropping capitalization rates and affecting the availability and types of transactions getting done, according to speakers at a general session at the North America Hotel Investment Conference. Investors are starting to look in new directions, as equity sources fight over deals and get pushed out into other market segments. Higher prices for hotel assets mean lower cap rates and fewer transactions. As a result, investors that would usually only invest in large, full-service assets are now interested in select-service products and in secondary and tertiary markets because the numbers are good and the risk is less.
One of new economic development director Christine Mackay's top priority this year is an "economic rebirth" of Phoenix's midtown area. Her plan is to take areas of central Phoenix that have seen office vacancy rates as high as 35 percent and turn it into a high-tech hub, specifically the area along Central Avenue between McDowell and Camelback roads to the north and south and Seventh Street and Seventh Avenue to the east and west. Because the area sits along the Metro light rail line north of downtown, she hopes to attract national and international technology companies who want to be on the transit line and near urban amenities to the tentatively named Phoenix Innovation Corridor.
AUSTIN, Texas -- A coalition of leading Texas business organizations is joining forces with the Coalition for Equal and Uniform Taxation to defend the Texas constitution's guarantee of Equal and Uniform Taxation, and fight efforts to impose mandatory sales price disclosure. The Texas constitution mandates that all property be taxed at market value and that the taxes be equal and uniform. Both homeowners and businesses have a right to challenge a central appraisal district's valuation if it does not meet this constitutional standard. "This important protection is one of the fundamental reasons for Texas' growing, healthy economy," said coalition spokesman David Margulies. "Our tax system has been under attack by certain taxing jurisdictions with an agenda that will hurt the Texas economy and has the potential to raise taxes for many Texans." Organizations joining the coalition include: the Texas Association of Business , NAIOP North Texas, the Texas Chapter of the International Council of Shopping Centers, the Texas Association of Builders , the Texas Self Storage Association, the Texas Apartment Association , the Texas Association of Realtors and the Texas Hotel & Lodging Association.
Property taxes paid to counties and municipalities by the proposed Atlantic Coast Pipeline would exceed $25 million a year, according to the energy companies that want to build it. The pipeline would extend about 550 miles in West Virginia, Virginia and North Carolina to bring natural gas for power generation, homes and businesses. Dominion plans to build and operate the natural gas pipeline pending regulatory approval for a four-member joint venture that includes Atlanta-based AGL Resources, Duke Energy, and Piedmont Natural Gas. If approved by federal regulators, construction would start in 2016 with service projected to begin by late 2018.