Saturday, March 25, 2017

Legislative Update, 2017 #13== Update on SB247, Lead bill. A few more bills decided or have an updated status.


Howdee everyone,
 
Important Updates:
SB247, Lead Law
The Senate Finance Committee voted 4-2 to “Re-refer” SB 247.  The vote was along party lines with Republicans (Daniels, Morse, Reagan, and Giuda) supporting re-referral while Democrats (Feltes and D’Allesandro) opposed the motion.
 
Generally, some of the Senators argued that landlords should know that properties they are acquiring may contain lead.  If so, they need to negotiate a lower purchase price to offset the lead abatement costs and have some repairs rolled into the mortgage.  They argued that state taxpayers should not have to pay for lead abatement costs since the risk is known prior to the acquisition.  This was their main argument to re-refer the bill rather than kill it since they understood the intent had merit.
 
Some of the senators have the impression that lead is not a big deal, simply replace a few windows and a little trim and you're done.  I left the meeting with a discouraged feeling of how ill informed our legislators are who then make large sweeping decisions that drastically affect our businesses and lives.
 
Procedurally, if the re-referral committee recommendation is adopted by the entire Senate, it would mean that the bill would be sent back to the Senate Finance Committee for the remainder of 2017.  In early 2018, the Senate Finance Committee would have to vote again to send the bill back to the floor.  At that time, the Committee could vote to pass, amend, kill, or re-refer the bill once again.  It is a common motion. It is important to remember that the entire Senate needs to vote on the committee report.  If they approve the motion, the bill will stay in the Finance committee.  If the re-refer motion fails, another motion can be made.  There were several Senators who felt that, based upon last week’s 17-6 vote in favor of the bill, that there could be sufficient support to overturn the committee recommendation.
 
It is planned that SB247 will come to the Senate floor this week.  There is expected to be an effort to "flip" the decision of the committee which means to vote down the recommendation of "Re-refer" and vote "Ought to pass" instead.
 
Consider:
1. If SB247 is "Re-refer"ed it will go back to Senate Finance and there it will likely sit for a long time, perhaps until November.
meaning no money but also no regulation changes (Universal testing, notification at >3ug/dl, water utility companies, schools & day car addressing water, having to comply with lead law, sales disclosure change, testing of rental property drinking water is limited to when a child tests positive and DHHS pays for the test, additional reporting of DHHS to be able to better project effect of universal testing etc)
 
2. If  SB247 is "flipped" and voted Ought to pass it will move on through the legislative process meaning we have a chance at getting the money but also the regulation changes.

3. Since this bill has now been negotiated down to something we can live with then whether the bill survives with the negotiated regulation or the bill is severely delayed or it actually dies and the lead law stays the same for another year, we are actually ok either way.
 
4. We are continuing to monitor the bill to be on guard for any detrimental changes.
 
Action items:
1. None required.  However, if you would like to educate your senators please feel free to do so.  Some points to mention:
A. increased regulation requiring buyers to negotiate down a purchase price is like the government “moving the goal post” and taking away a significant part of our property value.
B. the fund in the bill is a critical part of the bill that assists in providing balance to offset the cost of significantly more abatement orders caused by the increased universal testing.
 
Remember the full Senate will likely vote on SB247 this Wednesday or Thursday.
 
Stay tuned.
 
 
See more info in Summaries & Full Detail for each bill further below. (includes property owner position, contact info, Talking points, and more).
(to jump right to bill detail, use Control-F, Find).
 
 
Many of the bills have an updated status
See Bills Updated Status summary below
In particular note the status of bills where we have a position For or Against that bill.
This time we have listed all the bills that have died, been laid on the table or retained in committee.
 
 
Hearings this week:
03/28/2017 at 09:00 AM    SH Room 100
HB614, Forfeiture Of Personal Property
Level of Response: You Decide
Property Owner Position: You Decide
 
 
Hearings next week:
None scheduled so far
 
 
Further below is:
Bills Updated Status summary
Full details on all bills above
(Which includes property owner position, contact info, talking points, and more)
 
Love & Light,
Nick Norman
Director of Legislative Affairs
==============================================
Bills Updated Status summary:
We only list the committee reports on the most important bills affecting the real estate business.  If you want to get the committee report on one of the other bills contact me & I will show you how to get them on line.  It’s not terribly hard to get but not straight ahead either.
HB415, Establish an Income Tax, Reduce or Eliminate Other Taxes     
Title: reducing business taxes, repealing certain taxes, establishing an income tax, and requiring payment by the state of a portion of retirement system contributions of political subdivision employers.
Property Owner Position: You Decide
General Status: HOUSE
House Status: INEXPEDIENT TO LEGISLATE
Senate Status: none
 
SB78, Tax Records Confidential     
Title: requiring audit records related to payment of business profits tax to be confidential.
Property Owner Position: For
General Status: SENATE
House Status: none
Senate Status: REPORT FILED: 
 
HB614, Forfeiture Of Personal Property     
Title: relative to forfeiture of personal property.
Property Owner Position: You Decide
General Status: SENATE
House Status: PASSED/ADOPTED
Senate Status: IN COMMITTEE
 
SB247, Lead Law     
Title: preventing childhood lead poisoning from paint and water and making an appropriation to a special fund.
Property Owner Position: Against
General Status: SENATE
House Status: none
Senate Status: REPORT FILED: 
 
HB654, Regulation and Rooms & Meals tax for short term rentals     
Title: (New Title) establishing a committee to study the regulation and taxation of vacation rentals and short-term rentals.
Property Owner Position: You Decide
General Status: HOUSE
House Status: PASSED/ADOPTED
Senate Status: none
 
HB386, Technical Corrections To The Education Tax Credit      
Title: relative to technical corrections to the education tax credit statute.
Property Owner Position: You Decide
General Status: HOUSE
House Status: PASSED/ADOPTED
Senate Status: none
 
HB568, Taxability Of Lease Interests In Public Property     
Title: relative to the taxability of lease interests in public property.
Property Owner Position: You Decide
General Status: HOUSE
House Status: PASSED/ADOPTED
Senate Status: none
 
SB185, Tax Relief Coastal Property     
Title: extending the community revitalization tax relief program to coastal properties subject to storm surge, sea level rise, and extreme precipitation.
Property Owner Position: You Decide
General Status: SENATE
House Status: none
Senate Status: REPORT FILED: ==============================================
Full details on all bills above:
SB78, Tax Records Confidential
01/25/2017 at 09:00 AM    SH Room 100
Title: Title: requiring audit records related to payment of business profits tax to be confidential.
 
Summary: This bill would require that all taxpayer records obtained by State 
be kept confidential.
 
Property Owner Position: For
 
 
Email to Committee: 
Subject: SB78 
 
Analysis Stated in Bill: 
 
Talking Points:
There is no reason why a business's tax records should be public. Please support this bill.
=====================
HB614, Forfeiture Of Personal Property
03/28/2017 at 09:00 AM    SH Room 100
Title: Title: relative to forfeiture of personal property.
 
Summary: Seems to have little impact on landlords.
 
Property Owner Position: You Decide
 
 
Email to Committee: 
Subject: HB614 
 
Analysis Stated in Bill: 
 
Talking Points:
We have not studied this bill and are basically just letting you know this bill is here incase you think it may impact you.  If you learn more please let us know.
=====================
HB654, Regulation and Rooms & Meals tax for short term rentals
03/07/2017 at 12:00 AM    LOB Room 202
Title: Title: (New Title) establishing a committee to study the regulation and taxation of vacation rentals and short-term rentals.
 
Summary: This is a detailed bill that would first stop municipalities from prohibiting short term rentals, but would allow the short term rentals to be subject building and similar codes, and would set up a system to allow entities that handle short term rentals to pay the rooms and meals tax on behalf of the property owner.
 
Property Owner Position: You Decide
 
 
Email to Committee: 
Subject: HB654 
 
Analysis Stated in Bill: 
 
Talking Points:
Note the rooms and meals tax is already a requirement to be paid under present law and this bill does not change that fact.
 
The following description is listed in the bill purpose.
“Internet platforms are enabling more Americans to earn extra income from their homes and investment properties through short-term and vacation rentals.  At the same time, American travelers and family vacationers are saving money by renting fully-furnished homes instead of hotel rooms.  The growth of this new market is encountering resistance from many governments, in the form of zoning restrictions and prohibitions that prevent homeowners from using their residences for short-term rentals.  In 2016, Arizona enacted breakthrough legislation that enables short-term rentals while increasing tax revenue and preserving limited local regulation.  The Arizona law stops local governments from prohibiting short-term rentals, while allowing local enforcement of regulations on parking and public safety.  This law also makes taxes more efficient by allowing online platforms to collect and pay taxes at the state level, relieving homeowners of the need to file individually.”
 
The bill would allow the use of rooms in a home for short term rentals, and would subject the room or other lodging to be up to housing standards.   Taxing the rooms would help level the playing field for hotels, as they have to charge the tax and are at a price disadvantage with the short term renters, as well as put more funds in the state treasury.  It also specifically allows on line platforms that handle short term room rentals to handle the rooms and meals tax which is supposed to be paid under existing law.
=====================
HB386, Technical Corrections To The Education Tax Credit 
03/07/2017 at 10:30 AM    LOB Room 202
Title: Title: relative to technical corrections to the education tax credit statute.
 
Summary: Seems to have little impact on landlords.
 
Property Owner Position: You Decide
 
 
Email to Committee: 
Subject: HB386 
 
Analysis Stated in Bill: 
 
Talking Points:
We have not studied this bill and are basically just letting you know this bill is here incase you think it may impact you.  If you learn more please let us know.
=====================
HB568, Taxability Of Lease Interests In Public Property
03/07/2017 at 11:00 AM    LOB Room 202
Title: Title: relative to the taxability of lease interests in public property.
 
Summary: Seems to have little impact on landlords.
 
Property Owner Position: You Decide
 
 
Email to Committee: 
Subject: HB568 
 
Analysis Stated in Bill: 
 
Talking Points:
We have not studied this bill and are basically just letting you know this bill is here incase you think it may impact you.  If you learn more please let us know.
=====================
SB185, Tax Relief Coastal Property
03/15/2017 at 09:15 AM    SH Room 100
Title: Title: extending the community revitalization tax relief program to coastal properties subject to storm surge, sea level rise, and extreme precipitation.
 
Summary: The legislative services analysis of the bill is an accurate summary of the 
bill.  It states (Via copy and paste) This bill allows municipalities to adopt a program for tax and other relief for coastal properties subject to storm surge, sea level rise, and extreme precipitation, under the community revitalization tax relief program.
 
 
Property Owner Position: You Decide
 
 
Email to Committee: 
Subject: SB185 
 
Analysis Stated in Bill: 
 
Talking Points:
This is a bill where someone with more knowledge and understanding that we have should do the analysis.
=====================
==============================================
===========================================================
Posted by at

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.

Subscribe to: Post Comments (Atom)