News: Taxes
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It’s tax season, so we figured it’s a good time to remind members of two important tax-reporting requirements that can have rental housing providers seeing red if not done correctly.
1099 reporting
A business that purchases services in excess of $600 from an unincorporated vendor must report that payment to the IRS and to the service provider on a Form 1099.
With limited exceptions, payments made to corporations are excluded from 1099 reporting. A “business” includes a landlord or management company that is engaged in rental real estate as its trade or business for profit.
Don’t miss your deadlines. Late-filing… Read More
Tagged: Taxes
State Sens. Holly Mitchell and Loni Hancock on Wednesday held a news conference on their bid to amend California’s constitution and undermine California’s Proposition 13.
SCA 5 would assess commercial and industrial properties at their market value, stripping away property tax protections under the state’s landmark law.
Under this split-roll, it appears residential property, such as rental housing, would retain the tax protections offered by the 1978 voter-approved proposition.
Getting Mitchell and Hancock’s measure before voters in 2016 would first take approval by a two-thirds majority in the state Legislature.
Support for splitting the tax roll in California, however, has… Read More
Tagged: LegislationTaxes
The California Apartment Association is working to defeat a November ballot measure that would levy unfair and exorbitant taxes that hurt both landlords and renters in Antioch.
CAA’s campaign, dubbed “No on Measure O,” includes a coalition of seniors, homeowners and local business owners.
However, this tax would not resolve the city’s chronic deficits — and is likely to be used for nothing more than City Hall salaries. Because Measure O was presented as a general tax, the City Council does not have to specify where or how the additional tax revenues will be spent.
Besides singling out one segment… Read More
A Proposition 13-related bill that would have closed a change-of-ownership loophole died in the Legislature last week.
Assembly Bill 2372 failed Thursday in the Senate Appropriations Committee.
“I’m disappointed that we came so close to finally closing one of the worst loopholes of Prop. 13,” the bill’s coauthor, Assemblyman Tom Ammiano, D-San Francisco, said in this Los Angeles Times article. “We finally had some business interests agreeing that the structure was unfair.”
Coauthored with Assemblyman Raul Bocanegra, D-Pacoima, the revised bill would have triggered reassessments following the sale of commercial property whenever 90 percent of the property is sold over… Read More
Tagged: LegislationTaxes
When the city of Antioch needed help passing a half-cent sales tax last year, the California Apartment Association answered the call.
As CAA members generously supported the city’s Measure C campaign, the Antioch City Council chose not to place a residential landlord business license tax on the same ballot.
Thanks in part to the rental housing industry’s political support, the sales tax initiative sailed to victory in November, and Antioch began collecting additional revenue in April.
Through the measure, Antioch expects to collect a little over $4 million. The City Council promised to spend the money fighting crime, hiring 22… Read More
Tagged: ElectionsTaxes Contra Costa
A CAA-opposed bill that would allow school districts to impose different parcel tax rates on different types of property heads to its first Assembly committee next week.
If SB 1021 by Sen. Lois Wolk, D-Davis, becomes law, school districts would be able to levy one parcel tax rate on single-family homes while charging other rates on apartments and commercial properties.
This split-roll tax bill, which goes before the Assembly Revenue and Taxation Committee on Wednesday, June 25, would let school districts to set parcel tax rates within a district based on characteristics such as parcel size, improvements to the parcel,… Read More
Tagged: LegislationTaxes
A bill that would close a change-of-ownership “loophole” in California’s Proposition 13 has undergone significant business-friendly amendments, helping it gain momentum in the Assembly.
At the insistence of the California Apartment Association and other groups, Assembly Bill 2372 no longer contains wording that could prompt a flood of unnecessary reassessments.
In the revised version of AB 2372, authored by Assemblyman Tom Ammiano, D-San Francisco, and Assemblyman Raul Bocanegra, D-Pacoima, reassessments would follow the sale of commercial property whenever 90 percent of the property is sold over any three-year period.
CAA strongly opposed the first version of the bill, which would… Read More
Tagged: AdvocacyLegislationTaxes
The California Apartment Association this week vowed to continue its fight against a split-roll tax bill that would allow school districts to impose different parcel tax rates on different types of property.
SB 1021 by Sen. Lois Wolk, D-Davis, passed the Senate on Monday, May 5, by a 21-15 margin and now heads to the Assembly.
Under Wolk’s bill, a school district could base tax assessments on characteristics such as parcel size, the size of improvements to the parcel and use of the land.
CAA joins a coalition comprising dozens of business groups opposed to this legislation.
Similar to last… Read More
Tagged: AdvocacyLegislationTaxes
A bill that would likely offer a tax rebate to hundreds of thousands of low-income Californians renters survived its first committee hearing this week.
“It’s essential for people who are low-income and disabled to take care of a lot of their basic needs at a time when costs are raising and rents are raising,” said Mira Ingram. The San Francisco resident, who uses a wheelchair and is on a fixed income, is quoted in this KCBS story about the bill.
AB 2175, or the Renter’s Tax Assistance Act, would provide tax refunds to financially struggling renters.
“Homeowners get state tax… Read More
A bill that would re-establish a tax-assistance program for California renters goes before its first committee hearing this month.
AB 2175, or the Renter’s Tax Assistance Act, would provide tax rebates to low-income tenants.
The bill, sponsored by the California Apartment Association and co-authored by Assemblymen Tom Daly and Phil Ting, heads to the Assembly Committee on Revenue and Taxation on Monday, April 28.
The amounts of assistance under AB 2175 would vary based on household income, beginning with $250 per year and capping at $348 per year.
For many low-income tenant households, these sums would equate to one or… Read More
Tagged: Affordable housingTaxes