NAIOP Source Updates 8/25

Newly Released: 2015 CRE Compensation Data

Does your compensation match up? Find out in this comprehensive report, which includes salary and bonus data from nearly 400 companies across seven U.S. regions and 28 metro areas. NAIOP members receive a $250 discount with orders by October 30. Read More


 

Early Advance a Possibility for Tax Extenders Legislation

NAIOP-supported tax extenders legislation could see congressional action in October, or possibly as soon as September after Congress returns from its August recess. Read More


 

Good Jobs Are Back

According to a study released last week (August 17) by Georgetown University’s Center on Education and the Workforce, the U.S. economy has produced 6.6 million employment opportunities since 2010, 2.9 million of which it considers “good jobs.” Read More

50/50 Sales Tax Redistribution Update

On Wednesday, August 29, the NC House voted 111-2 to NOT concur with the Senate version of HB 117, which included the 50/50 Sales Tax Redistribution proposal we opposed. The bill will now go to a conference committee to be negotiated between representatives from each chamber. NAIOP North Carolina representatives David Green (Scientific Properties, Raleigh), David Conner (Lincoln Harris, Raleigh) and Joe Padilla (REBIC, Charlotte) attended the Wednesday Sales Tax Redistribution Rally to speak against the proposal on behalf of NAIOP. More than a dozen State Representatives were in attendance, along with Chamber presidents, mayors and council members from Charlotte and other metro communities around the state. It was great to see NAIOP highlighted in that venue, and it gave us a great opportunity to promote our organization to many of the leaders in the House.

NAIOP Source Updates 8/18

Going Beyond Green for Google

A new creative office building becomes the first speculative office building in Southern California to achieve LEED for Core and Shell Platinum certification. Read More 

NAIOP Source Updates 8/4

Congress Passes Short-Term Transportation Patch Before August Recess

During the final hours before Congress adjourned for the month-long August recess, the House and Senate sent an $8 billion federal transportation funding patch to the president for his signature. Read More


 

Retail Giants’ Same-Day Delivery Faceoff

Discover why micro-hotels are big business and get one expert’s perspective on how Wal-Mart’s free shipping service could impact industrial real estate. Read More


 

Driverless Trucks

The first impacts of autonomous trucks may be on warehouses, not highways. Read More

NAIOP Developing Leaders Y Readers Volunteering Event

On July 23, the NAIOP Developing Leaders team had a volunteer event at the Y Readers Summer Program at Hickory Grove Elementary.  Five of us attended and had an absolute blast.  Credit to Jenny Fowler who had led/attended a DL volunteer program at the Dallas NAIOP Chapter and brought the idea to the Charlotte Chapter.  Also, credit to Pete Lash for engaging the developing leaders to focus on the YMCA for this event.  He led a Developing Leaders Leadership Lunch Club recently and his passion for the YMCA led to this wonderful and worthwhile event.  As you can tell by the pictures, both volunteers and attendees had a great time.

Senate Tax Redistribution Plan Could Cost Mecklenburg County $50 Million a Year in Revenue

As members of the House and Senate meet behind closed doors next month to negotiate a state budget, a number of contentious issues will be on the table for debate, including funding of the JDIG job incentives program, a cap on the standard deduction, and an expansion of the sales tax on services.

But it’s the proposal for redistribution of locally collected sales tax dollars that’s causing the most heartburn for Mecklenburg and other urban counties. The current formula sends 75% of sales taxes back to the county where they were collected, and redistributes the remaining 25% statewide on a per-capita basis. Under the Senate’s proposal, that formula would gradually shift over the next four years to one that redistributes a whopping 80% of locally collected sales taxes statewide, on a per-capita basis.

That would mean Mecklenburg County stands to lose as much as $213 million over the next four years, based on revenue projections by the County Manager’s office. A loss of that magnitude would likely necessitate a property tax increase of as much as 5 to 7 percent.

Other fast-growing North Carolina counties will see similar revenue impacts, as well. Should the redistribution plan be fully implemented in FY 2019, as proposed, Guilford County would see a loss of $6.7 million, Durham County would lose $9.7 million, and Wake County would experience a staggering $17.7 million reduction in sales tax revenue.

North Carolina’s metropolitan counties rely heavily on sales tax revenue to fund the roads, sidewalks, and public safety required to support retail, office and industrial development. Losing significant portions of this revenue would likely result in higher local property taxes, reduced public services, or a combination of both.

Mecklenburg County’s delegation to the General Assembly is unanimously opposed to the plan, as is Governor Pat McCrory, who has likened the proposal to “class warfare.” But House and Senate budget conferees have yet to meet (officially, anyway), and the Redistribution proposal is one of a number of major items that need to be negotiated before a Continuing Resolution expires on August 14th. Medicare reform, JDIG funding, and cuts to the personal and corporate tax rates are also on the table, and must be resolved before the two chambers can approve a final budget for the fiscal year that already started July 1st.

The North Carolina Chapters of NAIOP have issued letters to the Senate and House to express our opposition over the sales tax redistribution plan.