A bipartisan group of state lawmakers, Mayor Jim Kenney, and local civic and business leaders gathered in Philadelphia's City Hall Friday to announce a legislative plan that would up the tax rate on the city’s commercial properties while lowering wage and businesses taxes. Proponents of the bill say that modifying the state’s constitution and restructuring the tax system would make Philadelphia more competitive nationally, attract more businesses and create 100,000 new jobs.
Proponents of the proposed California initiative that would have imposed a property tax surcharge on real estate valued at more than $3 million to raise billions for public assistance programs have halted their campaign. Proponents stopped collecting signatures for the November ballot and said they will try again another year.
All Texas businesses should be aware that their tangible personal property, domiciled in Texas, is subject to property taxation. A company's Fixed Asset Listing and Balance Sheet, which are expressly produced for the purpose of federal income tax returns compliance, are commonly utilized to submit personal property returns. Unfortunately, the use of these documents as the data source for business personal property compliance is fraught with potential errors that could lead to significant over-valuation and resulting excess taxation.There are a multitude of issues that can arise from using this data source, including:
Greater Boston has a record-low vacancy for industrial warehouse space of 11 percent in the fourth quarter, while manufacturing space in the region is also reaching below a double-digit vacancy rate for the first time on record, according to a fourth-quarter industrial report from brokerage Transwestern. Manufacturing vacancy dipped to 9.9 percent in the quarter, while asking rents rose 5.6 percent to $8.09 per square foot — breaking the $8 mark for the first time since mid-2008, the report said.
In 2015, high demand for multifamily space resulted in 306,000 new units being added to the U.S. market, according to Freddie Mac—the highest number since 1989. While momentum is expected to remain strong for 2016, the sector will start experiencing increasing vacancy. Multifamily investors will need to carefully consider which markets will stretch their dollar the furthest. Cities in the West and the South hold the highest ‘buy’ ratings from market experts, with the exception of markets with oil-reliant economies such as Dallas-Fort Worth, an expected pain point for multifamily investment in 2016.
As consumer shopping preferences shift, so do the landscapes of retail centers. Shoppers are no longer attracted to outlet centers based solely on the discounts, as they are readily available online. Instead, they are looking for an “experience” and want to be entertained while they’re shopping. As such, developers are enhancing food offerings, placemaking, and adding entertainment elements as they transition away from limited retail outlets into modern “lifestyle” centers.
Multifamily rents are likely to keep rising in 2016--just at slower pace than before, according to forecasts for the coming year. “Rising vacancy rates will take the wind out of landlords' sails and remove some of their ability to keep pushing rent growth at such a febrile pace,” says Ryan Severino, senior economist and director of research with New York City-based firm Reis Inc. Developers will deliver more new apartments in 2016 than the 188,000 new units they opened in 2015, pushing the vacancy rate up from 4.4 percent in the fourth quarter.
As the U.S. logistics industry flourishes from an improving economy and increased demand for space from e-commerce companies, it continues to reach record highs in occupancy and absorption. In fact, the logistics property sector expects to see a 23 percent increase in sales this year, according to a recent report from commercial real estate services firm CBRE. Global online sales will grow to $3.5 trillion by 2019, the company said, pushing demand for industrial properties toward mid-sized and big-box distribution centers located close to major population centers. However, industry experts predict the industrial space supply and demand will reach equilibrium by the end of 2016.
Two City Council members are filing a measure to implement the 2000 Community Preservation Act in Boston, which allows Massachusetts municipalities to raise money for housing programs, parks or open space, and historic preservation projects with property tax surcharges. The 1 percent property tax surcharge would be left up to Boston voters on the November ballot. If approved, it would raise an estimated $13 million, with another $6 million to $7 million coming from the state. Although 160 cities and towns across the state have approved such surcharges, Boston voters rejected a CPA proposal in 2001 that would have added a 2 percent surcharge on property taxes and raised more than $200 million over the last 15 years.
California property owners could be hit with a higher tax burden, as Governor Brown’s Administration insists the statewide school construction bond initiative be funded by local school districts raising taxes. While there is no argument over the need for school construction funds, as money from the last statewide school bond has run out, there are contrasting efforts as to how to obtain them. A $9 billion state school bond already has qualified for the ballot, which would be paid off by the General Fund, and garnered the support of builders, building trades, business organizations, school districts and a bi-partisan array of elected officials.
A Kansas house committee will introduce a three-bill package on Wednesday intended to “increase and stabilize resources public higher education institutions draw from for development of academic infrastructure.” One of the proposals would expand a statewide property tax by $120 million to support state university building maintenance. The other two bills could potentially escalate local property taxation, as they would grant new authority to community colleges and technical schools to generate property tax revenue.
The hotel industry in Chicago, like nearly all major markets across the nation, has been posting great performance metrics over the past several years. RevPAR increased 7.2 percent in 2014 on a year-over-basis in the Chicago market, according to STR Inc. RevPAR was up 7.7 percent through the first 11 months of 2015, which was primarily driven by room demand increasing 2.8 percent during the period compared with a 1.4 percent increase in supply. While a strong consumer demand and an active development pipeline may seem promising, the cyclical nature of the industry means the next downturn could be just around the corner.
Ft. Lauderdale is transitioning from a spring break destination for college students to a budding upscale resort town due, in part, to spillover from Miami’s boom. A string of new luxury hotels and residential buildings along the beach are drawing a mix of well-heeled U.S. tourists, foreign condo buyers and visiting families from all over. In fact, about $1.5 billion in residential and hotel developments are under way in the Fort Lauderdale area, according to the Greater Fort Lauderdale Convention and Visitors Bureau.
In an effort to "make the property appeals process as fair and equitable as it can possibly be," Pittsburgh Councilman Dan Girlman plans to propose changes to the way properties are appealed. According to the Pittsburgh Business Times, Gilman announced that he expects to present four main changes during a regularly scheduled City Council meeting Tuesday:
More than two months after a judge dismissed Austin’s lawsuit challenging Texas' property appraisal system, the city has filed a notice of appeal. The lawsuit seeks the reappraisal of thousands of commercial properties and vacant lands in Travis County, and asks the court to block the “equal and uniform” provisions in Texas tax law that allow a property’s value to be lowered to the median appraisal of comparable properties.