Policy Press Releases
Share |

BOMA Greater Phoenix rallies behind Prop. 301 extension

 

     PHOENIX, ARIZ. (March 29, 2018) — BOMA Greater Phoenix, which advances commercial real estate through advocacy, influence, and knowledge, was one of two industry groups to register in favor of a Prop. 301 extension of the 0.6 cent state sales tax (TPT) to continue putting more money into Arizona classrooms.

    The Arizona Legislature last week passed and sent to Gov. Doug Ducey the Prop. 301 extension that funds K-12 education in Arizona by approximately $600 million per year.  

The vote on SB1390 was 53-6 in the House and 26-4 in Senate and was passed in one day. The only significant tweak to existing law is it redirected $64.1 million that was for capital bonding to have that money also go into the classroom (Classroom Site Fund).

    “While there were a myriad of groups and individuals that supported this bill including the Arizona Chamber of Commerce and the Arizona Tax Research Association, BOMA (Building Owners and Managers Association) and CREED (Commercial Real-estate Executives for Economic Development) were the only two commercial real estate groups to register in favor,” said BOMA Greater Phoenix Executive Director Tim Lawless.  

   The passage was as a legislative bill rather than a referral to the ballot. The Legislature now retains control to make tweaks to the funding buckets on a moving-forward basis. If it had been passed by voters, it would have been Prop. 105 protected, which would require supermajorities to amend or further the intent.

     “The reason this was wise to support is we are now on official record in support of K-12 education and the expenditure of new resources,” Lawless said. “This will give us credibility and a seat at the table when the discussion now moves to funding sources and an additional $400 million per year that the education lobby will seek by the 2020 ballot.

       “While we would not prefer this new funding to be a new statewide property tax, we need to be flexible should this be put on the table so we can pursue greater property tax fairness and equity for all businesses that pay as much into supporting K-12 as everyone else,” Lawless said.   

About BOMA

The Building Owners and Managers Association (BOMA) International is a federation of 93 BOMA U.S. associations, BOMA Canada and its 11 regional associations and 13 BOMA international affiliates. Founded in 1907, BOMA represents the owners and managers of all commercial property types including nearly 10 billion square feet of U.S. office space that supports 3.7 million jobs and contributes $205 billion to the U.S. GDP. Its mission is to advance the interests of the entire commercial real estate industry through advocacy, education, research, standards and information. BOMA Greater Phoenix has been federated with BOMA International since 1940. Find BOMA International online at www.boma.org

 

 

 

April 16, 2018

 

Dear Representatives,

 

We, the undersigned trade associations, represent commercial and residential property owners across the state.

 

We urge you to OPPOSE SB1268 (class six property; elderly homeowners).

 

The Arizona Multihousing Association (AMA) represents the owners and operators of most apartment communities across the state.

The Building Owners and Managers Association of Greater Phoenix (BOMA) represents some of the largest owners and property managers of commercial office buildings in the state. Commercial Real-estate Executives for Economic Development (CREED) members own more than 70 million square feet in Arizona and have more than 5,000 small business tenants.

 

Together the AMA, BOMA and CREED represent a significant portion of the residential and commercial property tax liability in the state of Arizona.

 

SB1268 changes, from Class 3 to Class 6, the property tax classification of certain homes that qualify for the senior property valuation freeze under the Arizona Constitution. This change allows certain homeowners, meeting a specific age threshold, to benefit from a reduced property tax assessment ratio.

 

Currently, all nine of the property tax classifications are based upon the physical property or the use of the property as opposed to the individual property owner as prescribed in SB1268.

 

We believe that creating a special property tax exemption for an individual owner that is not tied to the physical property or use of the property will result in a disparate treatment to all other property owners across the state. Furthermore, unlike other tax incentives created by the legislature, the special exemption created in SB1268 offers no real public benefit and the new special treatment would neither generate nor advance any public interests.

 

This sort of disparate treatment is a clear violation of Article 9, § 1 of the Arizona Constitution wherein, “…all taxes shall be uniform upon the same class of property within the territorial limits of the authority levying the tax, and shall be levied and collected for public purposes only.”

 

We are equally concerned that by creating a special tax treatment for one class or group of individuals, it will simply cause other groups to seek similar special treatment in the near future, and further exacerbate the unequal treatment of taxpayers in the state of Arizona.

 

We ask that you please vote “NO” on SB1268. Thank you for your consideration.

 

Sincerely,

Arizona Multihousing Association

Building Owners and Managers Association of Greater Phoenix

Commercial Real Estate Executives for Economic Development

 

more Calendar

6/26/2018
Media & Marketing Committee

6/26/2018
WORKSHOP: Make Any Network Yours (M.A.N.Y.)

6/28/2018
Engineer Committee

7/3/2018
Speakers & Programs Committee

7/4/2018
TOBY Committee

Mission Statement

Building Owners and Managers Association of Greater Phoenix mission is to advance a vibrant commercial real estate industry through advocacy, influence and knowledge.

Connect with BOMA of Greater Phoenix

Membership Management Software Powered by YourMembership  ::  Legal