By Courtney LeVinus and Jake Hinman, Capitol Consulting
As the 2018 Session winds down, the AMA has shifted its focus at the Capitol after two AMA priority bills were signed into law by the Governor in early April.
The AMA’s first bill, SB1376 (landlord tenant act; personal property), sponsored by Senator Gail Griffin, will provide new statutory framework for dealing with a tenant’s abandoned personal property or their abandoned animals. After the bill becomes law (90 days after adjournment of the legislature), landlords will only be required to hold the tenant’s abandoned property for a period of fourteen days instead of the existing 21-day requirement. The bill also provides additional clarification on storage requirements.
Over the course of the legislative session, the AMA also successfully negotiated a compromise related to Government Property Lease Excise Tax (GPLET) incentives. HB2126 (government property; abatement; slum; blight), introduced by Representative Vince Leach, prescribes new requirements for GPLET incentive districts known as Central Business Districts.
Concerned that the original proposal to redefine the existing “slum and blight” conditions---that are required to be met prior to receiving a GPLET---would create uncertainty for future development deals, the AMA shifted the focus of the bill to instead redefine the size and shape of the Central Business Districts. The AMA is confident that the comprise reached on HB2126 will provide the necessary reforms to appease the opponents of GPLET while preserving the tool for future development projects.
Now that both SB1376 and HB2126 are behind us, the AMA has shifted its focus on a bill that would change the tax structure for buildings undergoing a major remodel.
The bill, SB1409 (TPT; prime contracting; alteration; replacement), in its current form would eliminate a key exemption created in 2015, that allows a building owner to benefit from paying tax at the point of sale for construction-related material. The bill would revert back to the pre-2015 reform and require owners to pay tax under the “Prime Contracting” classification that taxes on the gross income derived from the construction activity. The exemption known as “Maintenance, Repair, Replacement, Alteration” (MRRA), provides a more favorable tax position for property owners.
The AMA is actively working with the proponents of the bill, along with various stakeholders, in an attempt to reach consensus and retain the MRRA exemption.
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