Day at the State Capital

State Issues 2019

NAIOP works with state and local chapters to engage with state leaders on legislative proposals and policies that could impact commercial real estate.
When NAIOP members come together to address important issues with their state representatives, those elected officials listen. There were 25 chapters in 10 states partnering with other real estate groups to take part in a Day at the Capitol.

These sessions allow NAIOP members to learn more about important legislative issues, and to speak directly to policymakers about crucial issues. NAIOP corporate will help you strategize and organize your “Day at the State Capitol” in order to maximize your impact and effectiveness.

In 2019, NAIOP members were active legislatively in the following state capitals on these and other issues:

Arizona

  • Taxes. Supported important taxpayer protection laws that have been enacted to provide greater certainty for developers, and worked to oppose taxes, fees and regulations that would increase costs for the commercial real estate industry.
  • Economic Development. Worked to retain and support existing economic development tools.
  • Property tax reform. Supported existing reforms, and worked to support further actions to make Arizona more economically competitive.

California

  • Split roll. Opposes a ballot initiative that would repeal the property tax protections provided to commercial real estate by Proposition 13. If the initiative passes in 2020, it could increase property taxes on CRE by $11 billion and force businesses to move out of state.
  • Mandatory lactation rooms. Supported a bill to mandate lactation facilities at owner’s expense, but opposed a bill that also includes a number of unnecessary provisions.
  • Dynamex decision. Supported and obtained an exemption to protect employers from a court ruling forcing employers to treat contractors as employees. The court ruling would make it more difficult for employers to get work done.

Colorado

  • Affordable Housing. Worked with the legislature to amend the state’s construction defects laws by allowing developers to correct unintentional defects in housing and mixed-mixed use projects prior to a lawsuit being filed.
  • Right to Rest Act. Worked to improve proposed legislation that would establish basic rights for individuals experiencing homelessness that includes, but is not limited to, the right to rest in public spaces, to shelter themselves from the elements, to eat or accept food in any public space, to occupy a legal public area (i.e. a parking space) and a reasonably expectation of privacy. Worked on providing support for individuals experiencing homelessness through mental health services and drug treatment.
  • Local Green Roof Ordinance: Led a coalition to successfully amend a voter-approved green roof ordinance that now provides owners with multiple options to address heat islands on the top of their commercial buildings.

Florida

  • Business rent tax. Supported legislation that reduces this tax from 5.7 percent to 5.35 percent. Florida is the only state that imposes a sales tax on commercial leases.
  • Permit reform. Supported efforts to pass the FAST Act (Fairness, Accountability, Simplification, Transparency), which would reform the local permitting processes. The FAST Act would speed the licensing and permitting process. It would also require local governments to issue permits within timelines which they, themselves, would establish. If the local government does not adhere to its own timeline, the permit fee is reduced.
  • Lease signatory changes. Supported legislation to allow remove witnessing requirement on commercial leases. Removing this requirement will allow for greater flexibility and efficiency in moving forward with commercial leases.

Georgia

  • Permit reform. Successfully advocated for passage of the FAST Act (Fairness, Accountability, Simplification, Transparency), which reforms the local permitting processes. The FAST Act speeds the licensing and permitting process. It also requires local governments to issue permits within timelines which they, themselves, would establish. If the local government does not adhere to its own timeline, the permit fee is reduced by 10 percent, every 10 days, until the permit is issued. The legislation also establishes a state “scoring system” of local governments in meeting these permitting timelines.
  • Regional Transit System. Supported the expansion of the regional transit system.

Hawaii

  • Surcharge on investment properties. Worked with legislators and business community to successfully defer a 2018 ballot initiative bill proposing to amend the state constitution in order to fund education through a special surcharge on owners of investment properties.
  • Affordable housing.  Support of development incentives for new affordable market and rental housing projects, including flexible regulations in transit oriented development areas; opposition to development restrictions such as increase to inclusionary zoning up to 50%, rent-control and higher fees.
  • Taxes. Opposition to additional taxes and fees on real estate transactions including increases to the conveyance tax, disallowance of the dividends paid deduction for real estate investment trusts and increase to the school impact fees.  Opposition to imposing state income taxes on Real Estate Investment Trusts.
  • Additional development regulations.  Opposition to increased development risks or regulations such as a mandate to supplement all environmental studies after 15 years or permitting the state to withdraw a land use designation.
  • Energy and Building Codes.  Meeting with stakeholders and legislators to support initiatives to create more energy efficiency in residential and commercial real estate projects through incentives.  Opposing mandates that are not aligned with incentives which will increase costs and decrease feasibility of affordable housing and commercial development.  Supporting initiatives to speed up building approval and permitting processes.
  • Infrastructure Utility.  Meeting with City officials and stakeholders to monitor and provide input on a City initiative intended to create a new public utility to develop and maintain drainage infrastructure, and to effectively raise the cost of ownership of all real property in the City and County of Honolulu.

Nevada

  • Economic development. Supported legislation to expand the economy and encourage businesses to remain, expand and/or relocate to the Nevada.
  • Government funding. Advocated for efficiencies in Nevada’s tax code, to fund the government while ensuring taxes and fees are used for their intended purpose and not reallocated to other programs.
  • Transportation and infrastructure. Supported Public-Private partnerships to expand the capacity of highways and streets, and supported funding for an infrastructure bank to begin important projects.

New Jersey

  • Infrastructure. Support funding for the crucial Gateway Project that would repair and replace tunnels and bridges that connect New Jersey and New York.
  • State competitiveness. Advocated for the reduction of regulations that make it more difficult to conduct business, in order to encourage businesses to locate in the state.
  • Liquor licenses. Support a reduction in the cost of and an increase in the number of licenses available as a way to attract people to live, work, shop and socialize in their communities.

North Carolina

  • Tax reform. Supported legislation to clarify that the sales and use tax does not apply on service contracts for repair and maintenance.
  • Economic development. Supported a comprehensive economic development strategy to ensure the state has the tools and investment to remain competitive with neighboring states. That includes efforts to strengthen workforce development programs and fund crucial transportation and infrastructure projects.
  • Regulatory reform. Supported legislation to prohibit local governments from imposing inclusionary zoning ordinances on new multifamily and mixed-use development.
  • State competitiveness. Advocated for the reduction of regulations that make it more difficult to conduct business, in order to encourage businesses to locate in the state.

Pennsylvania

  • Expand Pennsylvania Economic Incentives: The Commonwealth should seek to grow and maintain an incentives advantage over our competitor states. NAIOP is working to increase DCED’s economic incentives line items, expand Business in Our Sites Grants/Loans, increase the line item for the Redevelopment Assistance Capital Program, recapitalize the Pennsylvania Industrial Development Authority (PIDA) Program, expand the Infrastructure and Facilities Improvement Program, and develop a Personal Income Tax Rebatement for significant capital and employment expansions.
  • PA Tax Reform: Advocate for business tax reform that improves the competitiveness of the state.  In collaboration with the CompetePA coalition, support the eventual lift of the cap on Net Operating Loss carryforwards and a reduction in the Corporate Net Income tax rate.
  • Authorization for Pennsylvania Like-kind Exchanges: when you exchange real property used for business or held as an investment solely for other business or investment property that is the same type or “like-kind,” which have long been permitted by the IRS and have been widely adopted by other states. PA is one of the only states not to have legislation recognizing these exchanges, and this creates a competitive disadvantage for real estate investment.
  • Support uniformity and flexibility in Department of Environmental Protection permitting & regulations.  This includes consistency in application of regulations across districts, wetland impacts for speculative development, timeliness in process, and a neutral stance as it pertains to speculative development and regulatory process
  • Support increased funding for Transportation & Infrastructure projects.  This includes support for the Funding/Project Strategies of the Southwest and Southeast Partnerships for Mobility, water and sewer infrastructure and expansion of regional transportation/transit projects.

Texas

  • Infrastructure. Support a forward thinking, flexible approach to planning for transportation and mobility needs.
  • Tax policy. Support a moderate, balanced, stable tax structure that allows Texas to compete in a global economy.
  • Economic Development and Responsible Growth. Advocate for tools to stimulate the economy and promote responsible and sustainable development without unnecessary regulation.