Pulaski County School Board Elections

At the August Luncheon, three of the candidates for the Little Rock School Board spoke to our members about their positions and ideas for improving the School Board.  Two of the candidates supplied us with their information packets.  You can access Mr. Carreiro's information by clicking here.  You can access Dr. Nayles' information by clicking here. 

BOMA International Action Alert

Activity in the United States Senate is heating up and your help is needed to impact two very different but very important issues that BOMA International has learned the Senate will take up next week.

The first issue is an amendment to an energy bill, H.R. 6, which is currently up for debate on the floor of the Senate.  BOMA International needs your help to defeat an amendment to be proposed by Sen. Chuck Schumer (D-NY) that would mandate state and local governments to reach certain levels of energy efficiency through the model building energy codes.  Our overriding concern is that the federal government should not be dictating which codes are adopted and enforced at the state or local level.  Furthermore, the amendment language sets targets for revision to the model codes rather than having the federal agencies work within the current "consensus" process to effect changes. We are also concerned that the proposed amendment would make the federal government (DOE) the enforcer of last resort for the energy code at the state and local levels. 

The second matter is an attempt to bring to the floor the inappropriately named Employee Free Choice Act (S. 1041/H.R. 800) that takes away workers' democratic rights to a private election when deciding whether to support unionization in their workplace.  BOMA International opposes taking this important fundamental right of workers when deciding whether to unionize. 

Visit the BOMA International Legislative Action Center today!

HB 1209, still in committee, is stalled, and effectively dead.  It has been replaced by 1387, and is being strongly pushed by Barry Hyde of North Little Rock.  Our lobbyists have been on this one really strong as it does away with hold harmless on both public and private construction, which is a huge issue for new home and apartment construction and basically any situation where a realtor is involved.  It will also negatively affect any of our members with government contracts.  

Bob Balhorn and lobbyists have met several times with Mr. Hyde, and he has made requested changes in the bill, but the language used basically made the changes ineffective.

Keep your eye on this one, and if we have any more updates, we will post them on the website.

On Thursday, Sept. 14th at 10 am in Room 151 at the State Capitol, Senator Bobby Glover will be introducing a piece of legislation to repeal the sales tax on mini-storage usage, boat storage and boat slip rental to the Committee on Revenue & Taxation.  These were both introduced in special session along with the 3% surtax on income tax to fund schools.  The 3% surtax was already repealed, but it did not reach the other parts of the emergency legislation. 

Legislation is being finalized on Land Bank decision.  Clearing titles on vacant lots will be very costly to the city, so it is not apparent if this will actually happen.

Tim Grooms will be introducing legislation pertaining to product liability.  This seems to be far removed from us, except for defective product.  If this passes, it will effectively protect the leasing agent from lawsuit in the event that a building is damaged by furnace explosion, etc.  This legislation also covers home and apartment sales.

Foreign Investment in Real Property Tax Act (FIRPTA)

In 1980, Congress passed the Foreign Investment in Real Property Tax Act (FIRPTA) which authorized the U.S. for the first time to tax foreign persons on the disposition of U.S. Real Property Interests.  This law places the responsibility on the purchaser of U.S. real property owned by a foreign seller, to withhold 10% of the gross purchase price and remit to the IRS within 20 days of closing using Form 8288 & 8288-A.  It is important for BOMA members to know that it is the purchasers responsibility to determine if the seller is a foreign person and if withholding does not take place, that both the purchaser and his/her agent or settlement officer may be held liable for the tax.

There are also statures requiring tax withholding on rental income paid to a foreign landlord.  If a foreign person owns U.S. rental property and receives rental/investment income not connected to a U.S. business, the gross amount should be taxed at a rate of 30% through withholding by the party paying the rent proceeds.  The requirement to withhold 30% extends to the manager of the rental property, if the tenant fails to withhold.  

The local IRS has had this law on a back burner, but has now concentrated its efforts to enforce.  The recent seminar and issued material is a precursor to the clampdown.  Information can be attained at the IRS website at www.irs.gov as to what countries we currently do not have agreements with, and where you could face liability.

Other Current Local Issues to Watch

• There a study being done on eminent domain laws

• A Study group has been formed on Meth labs

• Lawmakers are looking at minimum services  that brokers offer to clients

• Watershed Restrictions

• Land Bank Study-Little Rock-Weed lots and vacant houses-procuring and re-selling.  The land bank would hold the property until ready for resale.

BOMA Position:
Limiting leasehold improvements to be depreciated at a rate of 1/39th per year until the improvement goes "out of service" runs counter both to common sense and the reality of the marketplace. It is a hidden and inequitable tax on the commercial real estate industry. The tax code should be amended to more closely reflect the reality of the marketplace.