Building Owners and Managers Association, Metropolitan Detroit Chapter
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BOMA Michigan Advocacy Issues

Michigan Key Issues: 

Tax Reform

Construction Lien Act 572

Mold

Utility Deregulation

Urban Sprawl/Smart Growth

Brownfield Tax Extension

BOMA Issues Watch List:

Tort Reform

Electronic Discovery

National Key Issues:

Leasehold Improvements Tax

Insurance/Terrorism

Forced Access/Telecommunications

National Energy Policy

Key Michigan Issues:

Annually, the BOMA Governmental Affairs Committee (GAC) reviews and discusses major issues facing our membership in the state legislature. This process culminates in the GAC targeting issue areas for action. The types and levels of action are determined by the BOMA GAC and include, at a minimum, monitoring and lobbying by BOMA lobbyists Steve Scofes and Del Chenault.

The GAC has determined the following issues will have the greatest impact on BOMA members and require immediate attention.

Click on underlined hyperlinks to read BOMA's detailed position papers

Tax Reform—BOMA of Metropolitan Detroit strongly supports a state tax policy that provides tax relief for a wide range of taxpayers including job providers, especially since Michigan still ranks above the national average in tax burden on business and individuals.

BOMA supports current efforts to lower and eliminate the Single Business Tax. However, BOMA opposes any efforts to replace the SBT with a business income tax, gross receipts tax, or extension of the sales tax to services.

BOMA strongly believes that any future tax on business replacing the SBT be a net tax cut.

Further, BOMA strongly opposes any efforts to eliminate the ‘additions and losses’ or ‘building vacancy’ sections of the state property tax laws. This section provides important property tax controls vital to the long-term viability of the commercial building industry. BOMA believes any attempt to remove this section of the law is an attempt to circumvent the intent of Proposal A and the Headlee Amendment.

Construction Lien Act 572—BOMA of Metropolitan Detroit believes that a property owner’s protections have been seriously jeopardized under the Construction Lien Act.

BOMA believes the intent of PA 572 was to enhance protections for subcontractors by requiring the owner to provide copies of the Sworn Statement and verify the Lien Waivers. However, the unintended consequence shifted the onus and the cost of compliance to the property owner or manager.

BOMA supports efforts to address the concerns of contractors, subcontractors, and suppliers for improvements. However, less than scrupulous subcontractors who circumvent the system by illegal means should be dealt with by enforcing the criminal mechanisms currently in place.

Mold—BOMA promotes high standards to protect the health and safety of building occupants. Further, the science of mold toxicity and any related ailments remains unsettled and unproven. BOMA opposes state initiatives to regulate mold and moisture or to establish mold exposure standards that can be overly broad. Such attempts could lead to consumer confusion or to unreasonable liability by sellers or lessors. BOMA supports state attempts to expand research on this issue through cooperative efforts with building owners/developers and tenants, as well as working with our state legislative leaders, to ensure that industry representatives are involved in any legislative initiatives regarding this issue.

Utility Deregulation—BOMA opposes any legislative attempts to change PA 141 of 2000—the electrical deregulation act. BOMA believes the competition in the electrical marketplace due to PA 141 has led to lower commercial electric rates for our members. BOMA supports efforts by the Customer Choice Coalition to maintain the competitive aspects of PA 141 and believes any changes to the state’s electrical regulation should be accomplished by the Michigan Public Service Commission.

Land Use: Urban Sprawl/Smart Growth— BOMA encourages the use of the Brownfield law for redevelopment of urban areas and adaptive re-use of obsolete buildings. BOMA opposes any initiatives restricting new development and believes market demand should dictate building and construction. We feel the restrictions of local zoning boards and planning commissions are adequate to deal with urban sprawl issues. While we do not oppose state efforts at a cohesive plan for Smart Growth, we feel the best government in this case is the local government.

Brownfield Tax Extension—We applaud the Michigan Legislature for extending the Brownfield’s Tax Credit in December through 2008. This is the type of tax law that will spark urban development and curtail suburban sprawl. We encourage the state to invest more in Brownfield Development as future funding allows.

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Key Federal Issues:

Click on underlined hyperlinks to read BOMA's detailed position papers

Leasehold Improvements Tax — 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. Federal and state tax codes should be amended to more closely reflect the reality of the marketplace.

Insurance/Terrorism — BOMA urges state and federal governments to play a role in ensuring that commercial property owners can continue to obtain coverage for damage from acts of terrorism, at reasonable and affordable rates. It is further encouraged that proactive security measures are taken on a statewide basis to protect our workplaces and workforces.

Forced Access/Telecommunications — Legislation and regulation, at the federal, state, and local levels, must preserve the viability of a free and effective marketplace that respects private property. Forced building entry privileges for telecommunications service providers (TSPs) are unnecessary, unmanageable, and unconstitutional. We encourage Michigan lawmakers to stand up for the private property rights of building owners and oppose the intrusion of the telecommunications industry onto building owners for their own profitable interests.

National Energy Policy

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For detailed information on BOMA issues and positions, please contact us or visit the BOMA International site. We also encourage you to take part in our monthly speaker meetings and monitor our advocacy issues and events through the website.