City looking to impose a utility tax: Memphis

What utilities would the tax apply to? Memphis Light, Gas and Water bills and would operate like a stormwater tax

What would the tax be? range from $4.75 to $15

What is the projected local revenue?  $30 million in revenue each year

Transportation projects to be funded? offset the costs of road projects and create a dedicated source of funding for Memphis Area Transit Authority

Memphis Flyer | City Council Looks to Implement Transportation Utility Fee

• The alternative, a constitutionally required super majority for tax increases, was a worse vote
• Initiative and Referrendum was utilized by industry as a way to get Legislative Action
• Instead of making the issue about a soda tax, it was messaged as an increase in all taxes and fees

Governing | Why California Lawmakers, Begrudgingly, Banned Soda Taxes

California passed AB 1884 (2018 |CA) preventing local bans on straws and providing for straws upon request.

Sacramento Bee | Plastic straws only for those who ask in California? It’s up to Jerry Brown

What is this all about? Austin’s proposed efficiency study ordinance

Why is the efficiency study an issue? “the current ballot language misleads voters into conceiving of the efficiency study as a net cost to Austin”

What does TPPF want? 3rd party audits of city budget and practices

TPPF Press Release on its brief

 City: Berkeley

Why is Berekely interested in local bonds backed in bitcoin?

• “cryptobonds” can be issued in denominations as low as $5 or $10
• Its a way to Fund Seciton 8 housing, slashed by the federal government

Governing | Berkeley’s High Tech Gamble

University of Michigan professor Judith Grant Long work shows:

• $67 M in lost property tax revenue on a $350 million stadium over 30 years
• $53 million in lost revenue over 30 years for the city’s share of revenue from ticket surcharges, concessions and parking surcharges (often split with a team)
• + Costs generated from naming rights
• + costs generated from advertising revenue

Governing | Even When Teams Pay, Stadiums Still Aren’t Free for Cities (Looks at Austin, TX new MLS stadium and team)

Who is asking for an opinion? Hood County Attorney

What question does the Hood County Attorney want answered?  Authority o f a county to refund penalties and interest paid by taxpayers to a private tax collection firm, upon proof that the county may have caused the confusion that led to the delinquencies.

What is happening in Hood County? 

• Hood County contracted with Linebarger for collection
• Hood County received complaints
• Hood County moved all collections back to the County
• Hood County residents are “notice of delinquency from Linebarger”

Local Linebarger Attrorney pointed the County Attorney to 2 Tax Code provisions that require the fees:

• Section 3I.0l(g) “does not allow failure to receive a bill toform an excuse for nonpayment”
• 33.011 (d) “taxpayers may not seek awaiver o f penalties and interest once 181 days have elapsed since the tax became delinquent”

Those 2 code provisions are ripe for a HB or SB as Hood County thinks this is not fair to their taxpayers.

RQ-0244 -KP

California’s SB 946 (2018 | CA) will:

• legalize street vendors statewide
• create a permitting system
• preempt local criminal ordinances against street vendors
• allows residential areas to restrict stationary vendors 

The bill was messaged as:

• “EloteJustice”
• “elote with a side of justice”

What is the argument supporting the small business, street vendors?

The bill will override excessive local control over the streets and public spaces 

Streetsblog  Los Angeles | Bill Legalizing Sidewalk Vending Statewide Moves Through Legislature, Awaits Governor’s Signature

The Association: Sharing Economy Association Taiwan

membership: 

• Avis Budget Group and Zipcar
• AppWorks
• AsiaYo
• Jackercleaning
• GoGoVan
• Lalamove
• Uber
• Uber EATS
• USPACE
• WeMo
• Zipcar
• Zhong Yin Law Firm
• LCS & Partners Law Firm
•  the Institute for Information Industry

Goal of the association: promoting a regulatory environment conducive to Taiwan’s innovative digital economy

Taiwan Business | Sharing Economy Association Launches in Taiwan

Requesting the opinion: Chairman CHARLES SCHWERTNER

The questions he wants EXPEDITED: 

• whether a home-rule municipality in Texas can legally adopt a residential homestead property tax exemption that provides for a minimum exemption amount greater than $5,000; and (2) whether an appraisal district or thief appraiser is legally authorized to disregard or modify a local residential homestead property tax exemption adopted by a local taxing unit.

Why? Cedar Park residents, in two different counties, will have a homestead exemption ordinance that is set to be implemented with two different minimum amounts, $5,000 and $10,000.

State:  Michigan

Poll: ” 63% of likely voters support Michigan continuing to offer tax benefits to families who use a child’s 529 plan to pay for private school tuition”

Poll from: Mackinac Center

How do 529 plans pay for state tax breaks? Vew federal tax reform law allows 529 savings to be used for K-12 expenses. State law changes are necessary for state tax benefits

Mackinac Center | Poll: Mich. Voters Back Tax Benefits for School Choice

Regualtion of Daily Fantasy Sports will alter this year when Crown League launches.

Crown League will use blockchain to keep fantasy sports “honest”

CNN | The world’s first professional fantasy football league uses blockchain technology

Who takes the position that underfunding is the reason for rising pension costs? Alicia H. Munnell is the director of the Center for Retirement Research at Boston College

Why is underfunding of pensions causing the rising pension costs? (charts & graphs at link)

• Since 2001, the normal cost of benefits has remained unchanged
• Since 2001, benefits have declined
• Since 2001, employer contributions have declined

Do these numbers respond to something?  Yes, Wall Street Journal Editorial on July 19, 2018

Market Watch | Opinion: Don’t confuse public pension cost with generosity 

What question needs an answer by the Attorney General?   Do contractual assessments imposed by local governments under the Property Assessed Clean Energy Act (“Act”) in chapter 399 of the Local Government Code are “special assessments by the local government and treated in a similar manner as the real estate taxes on the property.”

What is all that mumbojumbo?  We’re talking about fees that come from the creation of local water and energy improvement programs in designated regions

What are local water and energy improvement programs? they exist to finance permanent improvements on privately owned commercial or industrial real property with 5+ dwelling units to decrease water or energy consumption or demand

So waht do we need to know to figure out how these assessments are treated under Texas Tax Code?

• Are they special assessments? yes, probably 
• Then what did the Legislature do? TEX. Loe. Gov’T CODE§ 399.014 shows that these assessments were to be treate dlike real property taxes

KP-210 (2018)

Home Rule City, Eagle Pass, wants to know whether City Council members who work for the school districtr can receive compensation for their city council service?

Attorney General Opinion KP-0211 says no. The Constitution prohibits. The only exception is teachers who may receive compensation for both. 

But, a school counsel probably meets the 3 point test. 

Where: Half Moon Bay, Califoria

What is the Half Moon Bay Ballot Proposition?

• To levy a tax on businesses headquartered outside of Half Moon Bay that currently deliver cannabis in the city
  • estimated to be $64,000 annually in tax revenue
• Establish a tax structure for all other commercial cannabis businesses that locate to Half Moon Bay
  • estimated to be $700,000 to $1.5 million a year in tax revenue
  • cultivation tax at $2 to $10 per canopy square foot depending on cultivation method
  • retail tax 6%of gross receipts
  • testing labs tax 2.5% of gross receipts
  • distribution tax 3% of gross receipts
  • manufacturing tax 4%  of gross receipts

Are marijuana related businesses currently permitted in Half Moon Bay? No

Does the ballot proposition change that? No

The Daily Journal | Marijuana tax to November ballot

State: Washington

How do the marijauna tax revenues look in Washington state:

• 1st year actual revenue: $64.9 million collected
  • 1st year estimated revenue: $36.3 million
• most recent fiscal year: $314.8 million
  • 262% more than estimated

How is marijuana taxed in Washington? 37% tax levy on all retail sales

How does WA spend its marijuana revenue? 

• substance-abuse education and treatment programs
• $262 million in 2018 went to fund WA’s Medicaid

How does CO spend its marijuana tax revenue? dedicated largely to education

IS WA marijuna revenue expected to plateau? No. $75 Million in growth projected through 2021.

K5 News | Why marijuana tax money isn’t a Washington state budget fix 

WHO | Activist Group:  Nebraska Taxpayers for Freedom

WHAT | Constitutional Property Tax Fix: 35% of local property taxes could be used to offset other state taxes. For Nebraska this could be the state’s income tax.

WHERE | Nebraska

The goal of Nebraska Taxpayers for Freedom: to get the Legislature to act in 2019.

Freemont Tribune | New property tax relief petition drive set to begin

Where:  Adelanto California

Background on Adelanto’s marijuana tax: In 2016 68% approved an up-to 5%  levy on gross revenue receipts for all commercial marijuana businesses

The current tax brings in: $2- 2.5 million

What will the ballot proposition do to the marijuna tax structure?

• $5-per-square-foot tax for cultivators
• all other marijuana business 5% on gross receipts

Daily press | Adelanto to ask voters to simplify marijuna tax

• City’s Credit Worthiness Could take a Hit.  “a hard liability (pension bonds) over a soft liability it can be seen as increasing the risk to the city’s credit quality”
• 2003 failure repeat.  Illinois  issued $10 Billion in pension obligation bonds in 2003 with no help to funding ratios in the pension systems
• Manageable Contribution Schedule.  Bonds must include a required manageable contribution schedule 

Bond Buyer | Chicago’s case for issuing pension bonds. 

1. The Massachusettes Legislature passes a measure calling for interim rules for fantasy sports with a sunset provision to require legislation
2. legislation fails to pass and the Legsislature removes the sunset provision
3. Fantasy Sports Operators continue to operate under the interim rules that have no taxation requirements

The Salem News | Fantasy sports remain untaxed  

Examples of calls for investments that relate to federal government actions:

• Pension Funds educators petitioned the California State Teachers’ Retirement System to divest from private prison operators that operate immigration detention centers
• All State Fund. New York State Comptroller Thomas DiNapoli divested state funds from private prison contractors that operate immigration detention centers
• Politician’s Personal Divestment. Republican Gov. Bruce Rauner of Illinois opponents are calling on his personal divestment from a private equity fund owned by a health care group servicing ICE detention centers
• University Contracts. University of Alabama at Birmingham, the University of Maryland College Park and Virginia Tech are being called upon to divest from ICE related contracts

Governing | Colleges, Cities and Pension Funds Pressured to Cut ICE Ties

A utility sales tax:  Most Texas cities repealed their sales tax on utiltiies in the late 1970s: 141 Cities in Texas repealed their sales tax on utilities

How can this sales tax be implemented: Some say it can be revived by city ordinance

Where is it being considered? El Paso as an alternative to raising property tax revenues

KVIA | ​City of El Paso Considering a Sales tacx for utility services. 

In repsonse to a Trib Talk by Mike Collier, Texas Comptroller Hegar says:

• Clear and honest look at Texas finances can be accomplished awith a revenue estiamte not geared toward a legislative session
• Consider the state’s credit worthiness to avoid making property tax changes that impact a looming balance-sheet issue
• “Gov. Greg Abbott, Lt. Gov. Patrick and members of the Legislature have worked to alleviate property taxes”
• The Office of the Comptroller does not raise or lower appraisals, it only “ensure[s] appraisals are fair and accurate”

Trib Talk | Texas Comptroller | Dishonesty won’t fix property taxes

The Report: CBPP’s State Limits on Property Taxes Hamstring Local Services and Should Be Relaxed or Repealed

4 State property Tax Caps that were studied: Michigan, Massachusetts, Oregon and New York.

3 Reommendations on Property Tax Caps

• Remove Property Tax Caps
• Amend caps to read, ”  limit the annual increase in property taxes to 1.5 or 2.5 percent or the rate of inflation, whichever is higher in lieu of whichever is lower.
• Include legislative” “circuit breakers,” which caps property taxes for people who make below a certain amount.”

Governing | The Downsides of Property Tax Caps

The states that require their pensions to be stress tested:

• California
• Colorado
• Connecticut
• Hawaii
• New Jersey
• Vermont
• Virginia
• Washington

Benefits of Stress Testing:

• explore the impact of pension system reforms
• more robust look than current baseline analysis of past results and future assumptions
• “sync the long-term sustainability of their retirement systems with their overall fiscal health”

Pew Charitable Trusts | States Turn to New Tool to Sustain Pension System Funding

State: Georgia

The tax passed by the Republican Legislature: a fuel surcharge on Delta airlines for removing a discount fare for NRA members

The Executive Order: July 30, 2018 Governor Deal

Background:  Republican GOvenror Deal is not seeking re-election

Supportors of the Executive Order Say:

•  Spurs growth in Georgia’s airline industry
• Georgia will remain competitive in the global economy
•  allows Delta to invest additional flights into Georgia

Tampa bay Times | Georgia jet fuel tax halted, months after Delta, NRA fight

San Diego City Council will consider a new deal with the San Diego State University to use the  SDCCU Stadium which will see the city receive:

• $1.1 million in revenue from the university annually
• City gets net parking and concession revenues (new to the city)
• The University will reimburse the city for game-day expenses
• City gets a $1 ticket surcharge 

The staidum will continue to have an operating deficit of $4.4 Milion for 2019.

KPBNS | SDCCU Stadium Agreement Advances To San Diego City Council

San Diego Union Times | SDSU Aztecs face $1 million rent hike to play football in ex-Chargers stadium

In June the US Supreme Court opened the door for legal sports betting in all states, pending state legislative approval.

Some jurisdictions, like India, are seeing a move for bitcoin to legitimize sports betting. How does that work?

• By allowing bitcoin as a legal currency for sports betting

Blockchain News & Tech | Could Sports Betting Help in Legitimizing Bitcoin in India?

Which states have the highest wine taxes?

• Kentucky $3.47 per gallon
• Alaska $2.50
• Florida $2.25
• Iowa $1.75
• Alabama and New Mexico tied at $1.70 

Which states have the lowest wine taxes?

• California and Texas at $0.20
• Wisconsin $0.25
• Kansas and New York $0.30

Do states add additional taxes to wine?

• Arkansas and Tennessee levy case fees
• Minnesota levies bottle fees
  • standard bottles taxed at $0.01 per bottle
  • miniature bottles taxed at $0.14 per bottle 

Tax Foundation | How High Are Wine Taxes in Your State?

State: Connecticut

Commission Exmaining Selling State Assets to Fund State Pensions: 13-member Pension Sustainability Commission

Pension Funding Proposal #1:

• Set up a state fund
• Funded by the sale of assets, like state real property
• The funds’ gains would shore up the pensions

Pension Funding Proposal #2:

• Dedicating state lottery proceeds to state pension
• Estiamted amount: $350 million in the current fiscal year
• Flaw: leaves a $350 million funding deficit in general revenue

Hartford Courant | New Commission Will Explore Selling State Assets To Shore Up Pension Funds

Art Carden,  an economics professor at Samford University’s Brock School of Business in Birmingham, AL, says:

• hotel revenue will not increase as much as cities think
  • for instance, the Carolina Panthers increase hotel revenue by less than 1% according to this study by economics professors in North Carolina 
• sales tax doesn’t make up for stadium costs
  • looking at the Carolina PAnthers again, the increased sales tax revenue during games accounts for less than 2.5% of the debt service on the satdium
• Evenif events increase gross tax receipts, they do not produce net tax revenue increases
  • 2017 PGA Championship cost Charlotte more in public safety related costs more than the increased hotel revenue

Forbes | Will A New Stadium Make Your City Richer?

In Illinois, a state representative proposes this plan to stablize pensions & lower property taxes:

• use the power of compound interest to help drive down massive pension costs
• level pension payments out over the next 25 years to reach funded status
• ensure that Illinois 
• annual pension payment would never rise above $12 billion
• “As the additional pension payments decrease from the initial $2.4 billion, the remainder should be used to lower property taxes on a per-pupil basis”

State Journal Register | Guest View: How to Solve the Illinois pension crisis & dramatically lower property taxes

Pennsylvania State Auditor released the following estimates on revenue from legalized marijuana:

• 800,000 regular users with estimated per person spending of $2,100 a year
•  retail market of  $1.7 billion
• $581 Million in annual revenue for PA
• 56% of Pennsylvanias support legalization
• based on a tax on the growth, cultivation and sale of marijuana at 35%
• Allegheny and Philadelphia counties were allowed to add 1-2% local tax, they could collect an additional $3.8 million and $6.9 million

Cumberlink Sentinel | Auditor sees state tax windfall if marijuana is legalized

New Hampshire joins the special session for online sales tax bill to consider a proposal  that calls for:

• protecting New Hampshire businesses from taxes imposed in other states
• to tax a NH based business, the state would need approval from the state Attorney General
• NH does not impose a sales tax on the sale of tangible personal property

How many think NH opposes the Wayfair decision? Correct. You are Correct.

Bloomberg Tax | Sales Tax Slice: Bills, Bills, Bills as No-Sales Tax States Seek to Counter Wayfair with Legislation

The Pennsylvania Supreme Court found that Philadelphia Beverage Tax is not a double tax.

What does the Philadelphia Beverage Tax apply to? Any non-alcoholic beverage that contains “any form of caloric sugar-based sweetener” or “any form of artificial sugar substitute”

Why is the “soda tax” not a double tax? because the legal responsibility for the tax is on the distributor & not the consumer- even if the tax is passed through to the consumer

Forbes | Double Tax Argument Falls Flat As Pennsylvania Supreme Court Rules Soda Tax Legal

The Hill | Pennsylvania Supreme Court upholds Philadelphia soda ban

 State: Utah

The legislation: In special session, the Utah Legislature passed HB 2003 (UT 2nd Special Session | 2018) and SB 2001 (UT 2nd special session | 2018)

What do the bills do?

• Ends agreements with collectors of online sales tax, like Airbnb and Amazon, that allowed the companies to retain up to 18% of their sales tax collections
• The online sales tax will only apply if the company does 200 sales or $100,000 in sales in UT
• Tax cuts for manufacturers to boost the state economy

US News & World Report | Utah Legislature Passes Requirement for Online Sales Tax

Background on pension administration in Texas: 

• 24% increase in 2 years for top-paid 20 pension investment executives
• pension executive salaries & bonus exceed that of the Governor and agency heads

What 3 things did House Pension Chair Flynn point to in an interview?

• more to the picture than rising salaries within a debt-ridden system
• ” we have a responsibility to make sure these high salaries and these bonuses are justified.”
• that the salaires outpace those of the Govenror and agency heads caught his attention

Texas Monitor | High salaries for investment execs at pension funds may get close review 

Palestine Mayor Steve Presley says his city loses $900,000 per year on online sales.

What type of legislative change would be necessary for cities in texas to tax online sales?

• the collectiona nd distribtution of local sales taxes

The impact to consumers? An increase in costs for consumers

What does Mayor Presley want the online sales tax to fund? “street repairs and improvements, police officers and firefighters, equipment and vehicles”

Palestine Herald Press | Texas cities lobby for local online sales taxes 

Washington State voters in November will consider a ban on local grocery and soda taxes.

Who is supporting the measure in Washington State?

• Teamsters supporting working class families
• Yes! to Affordable Groceries!,

How far reaching will the ban be? The ban will apply to any taxes, fees or assessments  on:

•  meat
• poultry
• fish
• fruits
• vegetables
• grains
• bread
• milk
• cheese and other dairy products
• nonalcoholic beverages
• condiments
• spices
• cereals
• seasonings
• eggs

Herald Net | Ballot measure would ban local taxes on groceries and soda

Add Pennsylvania to the list of states considering banning local soda taxes.

HB 2241 (2018 | PA)

Philly Voice | Pennsylvania lawmaker introduces bill to invalidate Philly soda tax

Philadelphia Inquirer | California banned new soda taxes. Could it happen in Pennsylvania?

The Louisiana Legislature in 2018 eliminated its school sales tax holiday.

Louisiana established its tax holiday for back to school in 2007.

KEEL 101.7 FM | LOUISIANA WILL NOT HAVE BACK TO SCHOOL SALES TAX HOLIDAY THIS YEAR

State: Arizona

The school funding mechanism:  The Invest in Education Act, initiative and referendum on the Novmeber ballot

The revenue source would be increases to Arizona’s income tax by:

• raising the rate from 4.5%to 8%for individuals making at least $250,000 and for families earning at least $500,000
• raising to 9% the tax rate for individuals making at least $500,000 and families making at least $1 million

The public education funding recipient: teacher pay raises & restoring full day kindergarten

12news | Education activists say Arizona is ripe for Invest in Education Act

Governing | The Week in Public Finance: The Red State That’s Considering a ‘Millionaire’s Tax’

The pension fund: Japan’s Government Pension Investment Fund

Background:The Fund has had 6 quarters of gains

What investments are touted for the 6.9% annual return for Japan’s Government Investment Fund?

• doubled stock holdings, majority of its stock investments in strategies that track indexes
  • 25% in domestic stocks
  • 25% overseas stocks
• cut bonds 
• Alternative assets accounted for 0.13% of holdings

The National | Japan’s pension fund posts best returns in three years 

Portland Oregon enacted 2 new fees on short term rentals:

• 2% fee on hosts who use booking agents to advertise or accept reservations
• $4-per-night fee assessed on booking agents and transient lodging intermediaries “for the privilege of facilitating a short-term rental occupancy.”

VRm Intel | Portland city council votes to collect new fees from short-term rentals. 

New Jersey Leegislators are using a short term rental tax as abargaining chip with a Governor opposed to short term rental taxes. 

Estimated annual revenue from the short term rental revenue in New Jersey: $250 million 

How New Jersey Would tax Short Term rentals:

•  expand sales tax
• apply the state’s  6.625% sales tax to r entals of fewer than 90 days would be taxed

NJ.com | Tax on shore rentals? I don’t like it, Phil Murphy says of Dem leaders’ key budget offer.

Politico | New Jersey Playbook | SWEENEY makes shore home tax counter-offer

• Kentucky Attorney Gnereal determiend that personal devices are excepted from open records laws
• Florida has 1,100 exemptions to its open records laws
• Iowa, Massachusetts and Oklahoma except legislative documents
• Charlotte County, FL lowered th enumber of requests by charging $50 for every request

Governing | See Public Records? Governments Are Making It Harder. 

State: California 

The legislation to prohibit soda/sugar taxes: AB 1838 (2018 | CA) 

The compromise: A sunset provision. Prohibiting cities from passing sugar taxes would expire in 2031.

What was the incentive to compromise? Beverage industry & the Business Roundtable had enough signatures for a ballot initiative that would have prohibited  tax increases without a 2/3 vote

Los Angeles Times | California Legislature nears deal to temporarily ban soda taxes

Sacramento Bee | California bans local soda taxes through 2030 to avert industry-backed initiative

What’s happening?  College and professional sports persons will argue in Indiana Supreme Court that consent must be obtained to use an athlete’s name and or likeness in Daly Fantasy Sports

Why does this matter? The practical issue is whether athletes should be paid to use their name.

IndyStar | FanDuel, DraftKings under microscope in state Supreme Court case being watched nationally

UK pension systems will require pension trustees to assess the social and environmental factors.

Why does this matter in the US? Social & Environmental Investing is on trend according to International Banker  analysis and money managers are moving in that direction.

Out-law.com | Pension trustees to be given powers encouraging investment in environmental and social schemes

• The US Supreme Court Ruling allows states to apply a sales tax to retailers with no physical presence in the state
• Texas Comptroller estiamtes the loss of sales tax revenue to out of state retailers is $1.1 Billion annually
• Implementation will be a logistically challenging as sales tax rates and application vary greatly by state and locale 

Go San Angelo | Texas could gain hundreds of millions after Supreme Court rules on taxing online purchases 

Governing | The Week In Public Finance: Supreme Court Clears Way for States to Tax Online Sales

The revenue outlook in Pennsylvania for Daily Fantasy Sports v. Sports Betting:

• Daily Fantasy Sports monthly revenue to the state is roughly $200,000 per month
• Sports Betting would have a taxable rate of 41% 
  • estimates are $310 million annually from online sports betting
  • first year revenue estimate is $150 – $200 million 

Penn Bets | THE FIRST FANTASY SPORTS REVENUE DRIBBLES INTO PENNSYLVANIA’S STATE COFFERS

Pennsylvania’s first revenue reports from regulating fantasy sports show:

• first month of operation: $199,756 paid to the state
• Market dominated by the 2 major players
  • 50.5% market share for FanDuel
  • 47.5% market share for DraftKings
• the industry took in $12,430,588 in total fees from Pennsylvanian participants

Penn Bets | THE FIRST FANTASY SPORTS REVENUE DRIBBLES INTO PENNSYLVANIA’S STATE COFFERS

Florida Court of Appeals upheld Jacksonville Florida’s 2016 half-cent sales-tax surcharge to shore up its police pension system.

News 4 JAX | Court upholds Jacksonville pension half-cent sales tax

Refreshing our recollection: informed:intel February 28, 2017

Pension TREND. Sunshine State City Pension Deal with Police.

Jacksonville, Florida and its law enforcement officers are reaching a deal to solve its pension $2.7 billion liability crisis. 

Here’s how the Jacksonville and police officer penion deal is shaking out:

• Voters approved a 1/2 cent sales tax increasre to go into effect in 2030
• The sales tax increase is triggered if andf only if officers agree to a fix
• 65% of law enforcement officers voted to approve 401Ks for new hires
  • 82% of captains and lieutenants approved the 401Ks for new hires
• The 401K deal comes with a 3%  bonus and a 20% across the board pay increase 
• The 401K deal also includes a return of all cut benefits during the 2000 financial downturn
• The 401K deal includes a 25% contribution by the city
• Contribution rates of current pensions will increase from 8% to 10%
• The final step will be approval by rank and file officers in March

News 4 JAX | FOP membership approves mayor’s pension deal

State: Idaho

Idaho’s Tax Exemption from local property tax on production equipment for:  hop growers & producers

The legislation: House Bill 594​ (2018 | ID) that ensure sthe agricultural equipment exemption from property tax includes hops equipment

 Why HB 594? Some local communities wanted toi apply property taxes to hops dryers and other equipment 

What’s happening with rule making?  Fine tuning definitions of agricultural production, raw product and sellable good

Idaho Capital Ag Press | Idaho tax commission weighs hops equipment exemption 

• head taxes
  • based on the number of workers on a company’s payroll
  • Denver has one
• parcel taxes
  • flat tax on every landowner
  • San Francisco  & Manhattan each both enacted the tax in June 2018
• sugar taxes
• marijuana taxes
  • Colorado collected $250 million in taxes and fees on weed
• developer taxes
  • Philadelphia is considering a new tax on real estate developers
• tourist taxes
  • includes restaurants, hotels, and short-term rentals
• sports betting taxes

Forbes | From Head Taxes To Parcel Taxes, Cities And States Are Looking For New Ways To Raise Revenue

• “integrity fees”
  • supported by MLB and the NBA
  • Up to 1%of all bets placed on games
  • to pay for  policing against game-fixing
  • model legislation 
• leagues want:
  • veto over which types of bets could be allowed
  • control over scores, player statistics and other data used by sportsbooks
• Other Stakeholders:
  • gambling industry
  • college athletic programs
  • players’ unions
  • service providers for gambling addicts
• Where to racetracks fall on the issue?
  • Ingtegrity fees take the “lion’s share” of profits from sports betting

Governing | NBA and MLB Quietly Hustle States for Cut of Sports Betting Jackpot

An IBM led coalition of 400 businesses is urging Congress to support workforce development funds.

The coaltion letter

The Hill | IBM-led coalition pushes senators for action on better tech skills training 

A month after unanimously passing the head tax in Seattle, this week Seattle City Council voted 7-2 to repeal the tax.

A council member said that her vote to repeal was “counter to my values as a person.”

Texas Public Radio | Seattle Repeals Tax On Big Business After Opposition From Amazon, Starbucks

Refreshing our recollection on the employer head tax:

Seattle this week passed  its “Amazon Tax” which taxes large employers per employee to fund housing crisis. 

Which cities are next?

• An Apple Tax in Cupertino or Austin?
• A Google tax in Mountain View?
• A Tesla tax in Reno?

Which cities already have a head tax for large employers?

• San Jose CA
• Sunnyvale CA
• Redwood City CA

CNN | Will these California cities impose a ‘Google tax’ or an ‘Apple tax’?

Tax Foundation | Business Head Taxes Take Aim at Having “Too Many Good Jobs”

An Atlanta news station asked for public records related to Atlanta’s ransomware attack.

The city repsonse:  No. Not going to happen.

Why is the city denying the open records request? ongoing investigation, ongoing security concerns

What do freedom of information experts say? The Freedom of Information Act does allow for exemptions during open investigations

CBS 46 | Atlanta officials deny requests for records amid cyber attack

City that passed a proposition for a parcel tax to fund higher teacher salaries: San Francisco

What rate is the parcel tax?  annual $298 parcel tax to fund higher teacher salaries

What’s the parcel tax background?

• Idea came from a teacher union
• Estimated to generate $50 million a year
• Will boost teacher pay, add staffing at high-needs schools &  improve technology

SF Gate | San Francisco passes ban on flavored tobacco; education parcel tax wins 

Seattle this week passed  its “Amazon Tax” which taxes large employers per employee to fund housing crisis. 

Which cities are next?

• An Apple Tax in Cupertino or Austin?
• A Google tax in Mountain View?
• A Tesla tax in Reno?

Which cities already have a head tax for large employers?

• San Jose CA
• Sunnyvale CA
• Redwood City CA

CNN | Will these California cities impose a ‘Google tax’ or an ‘Apple tax’?

Tax Foundation | Business Head Taxes Take Aim at Having “Too Many Good Jobs”

Iowa Legislature passed the largest tax cut in state history.

Iowa’s Governor said the following 6 points about the tax cut:

• immediate and significant tax relief
•  It’s simple
• It’s transparent
• It’s fair for Main Street
• Most importantly, it’s sustainable for our state budget
• fiscally responsible for the long-term … ensuring that we can fund our key priorities like education, health care and public safety,” she said.

What is the tax cut? An income tax cut

Where is the tax/revenue increase?

• sales tax for:
  • online shopping
  • digital purchases
  • electronic games and entertainment
  • travel sites
  • subscription services
  • ride-hailing services like Uber and Lyft

SF 2417 (2018 | IA)

 Governing | Iowa Governor Signs Largest Tax Cut in State’s History

The cities that have banned plastic straws:

• New York City, Hawaii, and California have pending straw ban legislation.
• California: Alameda, Carmel, San Luis Obispo, Davis, Malibu, Manhattan Beach, Oakland, Richmond, and Berkeley
• Washington: Seattle and Edmonds
• New Jersey: Monmouth Beach
• Florida: Miami Beach and Fort Myers
• Vancouver, BC
• Scotland
• Taiwan
• Prime Minister Theresa May announced a Britain-wide ban on the sale of plastic straws, stirrers, and plastic cotton swabs

The businesses that banned with plastic straws:

• Alaska Airlines
• Bon Appétit in all 1,000 of its cafes across 33 states, including locations like AT&T Park, home of the San Francisco Giants, the Art Institute of Chicago, the Getty Museum, Vassar College, Washington University in St. Louis, and the University of Portland in Oregon
• Queen Elizabeth II banned plastic straws and bottles from all royal estates,  cafes, and gift shops
• Waitrose, London City Airport, McDonalds UK, and Costa Coffee
• Ryanair aims to be “plastic free” by 2023
• Marriott is implementing a straw ban at all 60 UK properties

Fast Company | Here are the U.S. cities that have banned plastic straws so far

State: Tennessee

The Bill: SB 1877 (2018 | TN ) 

What do local law enforcement have to disclose?

• requires comptroller to audit use of civil asset forfeiture proceeds by local law enforcement
• requires law enforceent to publish uses of forfeiture proceeds by department, including:
  • overtime
  • travel
  • equipment
  • court costs
  • community programs
  • other expenses
• the law enforcement disclsoures myst be on department’s website along with the audit 

Portland, WA is using a shared values approach to economic development. 

Shared Values means:

• inclusive entrepreneurship programs
• identification of career ladder opportunities for underrepresented populations
• diversity goals around hiring and training underrepresented populations

What does this mean for businesses that receive economic development funds? Companies find business opportunities in solving social problems

Brookings Institute | Evolving tax incentives: A shared value approach to economic development in Portland 

What group is offering guidance on taxation of cryptocurrency? American Institute of Certified Public Accountants,

To which taxing authority did the American Institute of Certified Public Accountants, submit their guidance? IRS

What 3 pieces of guidance did the accountant group offer?

• the IRS hasn’t released guidance and its needed
• more and more taxpayers are engaging in cryptocurrency transactions and the transaction tracking gthrough documentation is a headache to track capital gains and losses
• set a reasonable manner for decalring fair market value determinations

What areas of crytocurrency taxation regulation do they seek clarification?

• gain and loss reporting
• expenses related to cryptocurrency mining, chain splits, air drops

Forbes | CPA Group Presses IRS For Clarity On Crypto Taxation 

State: North Carolina

Fantasy Sport Regulation Bill:  HB279 (2017-2018 | NC)

What legislative moves happened after the US Supreme Court ruling legalizing sports betting?

• North Carolina House re-referred the bill from its substative committee, Finance, because the committee would act to remove the language that daily fantasy sports is not gambling
• HB 279 was then re-referred to the Judiciary Committee
• The author of HB 279 is stressing to the Judiciary Committee that Daily Fantasy Sports is not legalizing sports betting

How is the author of HB 279 responding to claims that Daily fantasy Sports is sports betting?

• “This just addresses the reality in this state,” Saine said. “Without it, it’s the wild, wild West.”

WRAL | Fantasy sports bill proves nightmarish for sponsors

Arizona Senate Bill 1091 was vetoed by its Governor.

Senate Bill 1091 would have permitted tax payments to be made in cyrptocurrency.

Why was it vetoed? Concerns over impacts on private industry.

Veto Letter from Arizona Governor Ducey on SB 1091

Requestor: Chambers County

Which county departments would it like to fund with sales and use tax revenue?

The Report is by: Texas Public Policy Foundation

The Report:  THE HOTEL OCCUPANCY TAX IN TEXAS

The issues it has with the hotel motel tax in Texas?

• the combined, state & local, rates are 15-17.5%
• discourages tourism
• “siphons” money from local businesses 
• no accountability that the tax funds projects that increase tourism

The solutions:

• require reporting from organizations that receive hotel motel revenue
• link the reporting requirements to renewal of hotel motel funds for the recipient organizations
• if there is no return on invesgtment from hotel and motel funds, eliminate the grants
• cut or eliminate the hotel motel tax (limited government. low taxes)

city: Portland

proposed short term rental fee: $4 per night for guests + 2% fee for property owners

revenue projections from proposed short term rental fees & tax:  $2.5 million to the city’s housing budget

KGW 8 | Portland’s Mayor wants to tax Airbnb, its competitors & hosts

Where: Seattle

What is a head tax in Seattle?  A $275 tax per employee for businesses like Amazon, Starbucks & Google that gross over $20 million a year

What will the tax fund? Programs to eliminate homelessness

Governing | Will Seattle’s Controversial Tax on Big Businesses Stunt Its Economy?

County: Seminole County, FL

The reasons Seminole County is accepting cryptocurrency:

• eliminates credit card processing fees
• improves payment accuracy
• improves payment transparency
• improves payment efficiency

Is there a procurement opportunity here? yes, Seminole County contracted with BitPay

The Seminole County Press Release May 2018

Credit Rating Agency: S&P Global Ratings

Credit Rating Reduction: to  A from A+

Statement on Credit Rating Reduction: 

•  “increased budgetary strain from rising costs associated with pension obligations,”
• “uneven budgetary management that has relied on expenditure cuts and weakened reserve levels during a period of economic expansion,”
•  high level of fixed costs for its pension obligations and Medicaid are likely to remain such, further pressuring future budgets.”

State:  Kentucky

Pension Libaility: total unfunded liabilities at $64 billion 

Pensions & Investments | Kentucky’s pension obligations contribute to S&P credit rating downgrade

CALPERs is joining these 2 pension systms in seeking greater internal control over their investments:

• Texas Teacher Retirement System
• California Teacher Retirement System

What 3 Steps will CALPERS take to control investments?

• create multibillion-dollar funds to buy & hold private companies in the long term
• become the sole backer of funding vehicles for startups 
• as much as $20 billion in new venture-capital in unlisted companies within 10 years

3 Benefits touted of moving investments to internally controlled holdings:

• Less fees paid out
• Greater chances of meeting benchmarks than current private equity investments
• Greater control

Wallstreet Journal | Calpers Considers Following Buffett’s Way

Where: Houston, TX

Why were the economic develpoment rules revised? An audit by the City Controller in March 2018

What did the controller audit reveal? need for more documentation, more procedures, more monitoring is needed

What changes were approved by city council in May 2018? 

• good faith effort for 25% of new jobs are for low income communities

AP | Houston to Require Firms to Give More to Get Tax Breaks

City Attorney: Corpus Christi

Corpus Christi City Attorney opinion on whether Texas cities can impose a soda tax? No. No legislative authority for a local soda tax.

KRISTV.COM | Fact Check: Can Corpus Christi impose a “soda tax”?

State: Indiana

The stand alone Educational Savings Account Bill:  Would epxands 529 college savings plans to K-12 education. HB 1039 (2018 | IN)

The amendment to a tax bill: 

• HB 1316 (2018 Special Session 1 | IN )
• A omnibus tax bill 
• In a special session
• To get around the failed regular session bill
• The key text:
  • Defines qualified K-12 education expenses”
  • Tying the definition to 529 accounts

WBAA | Lawmakers Revive College Savings Plan Expansion In Key Tax Bill

The locality with a soda tax: Seattle

The Seattle soda tax: 1.75 cents per ounce tax on sugary beverages, syrups and concentrates

The revenue estimate:  $3.7 million per quarter

The actual revenue recieved:  For 2018 first qaurter, $4,082,015

Governing | Seattle Soda Tax Revenue Is Exceeding Projections. 

5: Number of states with statutes permitting sports betting in 2018

• Connecticut
• Mississippi
• New York
• Pennsylvania
• West Virginia

4: Number of States with statutes that permitted sports before 2018

• Delaware
• Montana
• Nevada
• Oregon

Moody’s Investors Service report: sports betting in Nevada is 2% of its gambling revenue

Governing | How the Sports Betting Ruling Will Impact State Budgets

May 2018 Local Bond Election:

• Approved: 62
• Defeated: 29 

May 2017 Local Bond Election:

• Approved: 69
• Defeated:  28

May 2016 Local Bond Election:

• Approved:  82
• Defeated: 26

• Washington
  • 4.4% growth
  • e-commerce
  • telecommunications
  • software
• Colorado
  • 3.6% growth
  • oil and gas
  • real estate
• Nevada
  • 3.5% growth
  • real estate
  • durable goods manufacturing
  • tourism
• Arizona
  • 3.2%
  • health care
  • retail
• Utah
  • 3.1%
  • professional, scientific and technical services
  • technology
• California
  • 3.0%
• Georgia
  • 2.7%
• Idaho
  • 2.7%
• Massachusettes
  • 2.6%
• Texas
  • 2.6%

Bureau of Economic Analysis

Governing | States With the Top GDP Growth

What was the projected revenue from the California marijuana tax for 2018, January to March? 

 $175 Million

What was the actual tax revenue from the marijuana tax for January to March 2018?

 $34 Million

Sacramento Bee | California’s marijuana tax collections lag below expectations

State: Alaska

The Legislation: Senate Bill 26 (2018 | AK) 

What revenue funds Alaska’s Permanent Fund?  The  40-year-old investment fund seeded with oil revenue

What does SB 26 do? Establishes a  5.25% cap on annual withdrawals from the fund

What policy statements are being made by legislators?

• State needs to balance its budget
• Need to address the state’s deficit

Anchorage Daily News | Alaska Legislature changes the way the Permanent Fund is managed

Anatomy of St. Louis’ lost love for stadiums. What impacted the city’s lost enthusiasm for stadiums?

• Bitterness. Departures of professional teams did not encourage enthusiasm
• Contracts. St. Louis’ stadium contract kepot the city on the hook for the costs of keeping the stadium in the top 25 of the nation.
  • Improvement costs exceeded the cost of building a new stadium
• Populism.  Cities “see team owners benefiting from luxury suites and other high-price add-ons that increase the team’s valuation and put more money in owners’ pockets.”
• Economics. The economic benefits of professional sports teams has been discredited 
• Local Revenues. Tight city budgets

Governing | How Cities Fell Out of Love With Sports Stadiums

7 Ways that Pension systems in California directly impacted WallStreet:

CALPERS, The California Public Employees’ Retirement System, has:

• Led the campaign to unseat the head of the New York Stock Exchange because of his “runaway” compensation
• Led the charge against Disney Chairman Michael Eisner’s governance problems
• Directly resulted in 3 board resignations/removals due to governance failures at JPMorgan Chase & Co
• Fought a 3 year abattle to give Apple shareholders input in board elections
• IN 2014 it began divestment from Hedge Funds

Los Angeles County Employees’ Retirement Assn. fought successfully to:

• “destagger” many corporate board to improve baord accountability so that more than 1/3 of board seats were at risk at one time

University of California Regents and the San Francisco Employees’ Retirement System in 2003 brought fraud charges against Enron.

Where do California’s pensions find their strength? With a Size that “dwarfs” Texas & Claifornia pensions’ stock holdings are collectively & centrally managed.
 

Los Angeles Times | California’s most powerful voice on Wall Street? Its pensions

• Texas #1
  • Location, location, location, especially DFW
  • Access to Mexico and NAFTA trade
• Florida #2
  • Orlando’s advanced manufacturing & access to qualified engineers
• Indiana #5
  • low corporate income tax
  • reasonable regulations
  • right to work,
  • global-caliber talent
  • growing workforce
  • affordable costs
• Colorado #8
  • living environment
  • health innovation ecosystem (healthtech)
• Alabama #17 
  • ever-expanding cast of automaker and suppliers
  • aerospace manufacturing
  • low cost of living

Chief Executive | Five States To Watch: Texas, Florida, Indiana, Colorado And Alabama

A new study is said to conclude that fantasy sports is a game of skill.

The authors:  by Kansas State Professor Todd Easton and co-author Sarah Newell

Publication: Journal of Sports Science

A supporting argument for the conclusion: unskilled players never win

Casino.org | Academic Study Rates Daily Fantasy Sports as Skill, Not Gambling

Calvin Ayre.com | Study finds daily fantasy sports requires skill

State: Alaska

The bill: SB 97 (AK | 2018)

What limits does Alaska’s Senate Bill 97 put on pension bonds?

• Reduces from $5 billion to $1.5 billion the amount of onds the state can sell to reduce pension liability
• In Alaska, the Legislature must approve the pension deficit bonds

Was this a compromise bill?  yes, some wanted NO pension bonds

Alaska Public Media | Legislature limits bonds for pensions, but keeps them as potential tool 

Some states with statewide transportation network (ride share) laws permit cities to impose taxes because:

• cities face the cost of street maintenance from ride share
• cities face the cost of ride share vehicle traffic
• cities face the cost of registering ride share drivers

3 Ways Cities are utilizing ride share tax revenues:

• Chicago is fixing its subways
• New York City also wants to put ride share tax revenue to subway improvements
• Philadelphia is using it for its public schools

Rivard Report | Texas Cities Losing Out on Tax Revenue from Sharing Economy

Which economic development project? Denton Enterprise Airport

What details were subject to release? That a code named economic develpoment project concerned Amazon Air

Why was Amazon Air disclosed as the code name proejct? A ruling on an Open Records request by the Texas Attorney General said the company’s name isn’t protectable under Open Records Laws

What do we know about Amazon Air?

• 40 cargo planes
• 1/2 of the cargo planes are based at its freight delivery service hub at Cincinnati/Northern Kentucky Regional Airport
• operates at 15 other airports around the country, including 3 Texas airpoorts:
  • DFW International Airport
  • George Bush Intercontinental Airport
  • Lackland Air Force Base

What was the impetus for the open records request?

• precedent
• establishing that not every business prospect is confidential

Dallas Morning News | Open records request forces Denton to reveal Amazon Air’s interest in airport

The American Hotel and Lodging Association is calling for ” consistency and a level playing field” as to taxation. In this brouhaha, each side is saying these things:

The American Hotel and Lodging Association says:

• Airbnb is strong-arming local governments in secret meetings
• Airbnb is getting favorable tax deals
• unfair to hotels and motels and to the public

Airbnb says:

• multiple websites post the voluntary tax agreements with local governments
• these voluntary agreements allow for the collection of tax revenue that the law in the jurisdiction may not allow the collection of
• Airbnb has paid 1/2 a billion in taxes through these agreements and the Hotel Lodging Assocition is chaning its tune and still complaining

Texas Public Radio | Hotel Association Attacks Airbnb On ‘Secret Tax Deals’

State: Colorado

The bill: Colorado’s HB18-1070 (2018) 

How Colorado’s HB18-1070 funds schools with revenue from marijuana:

• Dedicates  $35 million+ per year to grants for school construction projects
• The bill is a correction to overly conservative school construction program set asides when the marijuana tax was passed

The Daily Sentinel | Bill gives pot money to schools

The Texas Baptist Christian Life Commission is pointing to Oklahoma, Pennsylvania & Illinois as failures for using gmabling revenue to help public education.

The reasons suggested to oppose gambling revenue to fund public education:

• Gambling revenue is unreliable, ineffective
•  Increases in crime, addiction, domestic violence and suicide
• Texas history is to pass gambling initiatives to supplement public education revenue, but in actuality the gmabling revenue replaces other state funds with no net benefit to public education

Baptist Standard | Voices: Gambling expansion won’t solve education emergency in Texas

Court: Indiana Supreme Court

The certified question from the 7th Circuit Court of Appeals before the Indiana Supreme Court:  Whether online fantasy-sports operators that condition entry on payment, and distribute cash prizes, need the consent of players whose names, pictures, and statistics are used in the contests, in advertising the contests, or both.

What does this mean for regualtors and legislators? Some say that Daily fantasy Sports operators, companies which are partially owned by certain sports leagues,  “are simultaneously making legal arguments in the ongoing court case that may run counter to the specific lobbying points being made by their part-owners.”

State: Minnesota

The Fantasy Sports Legalization Bill: 

the Vote: 48-74.

• Two years ago the vote was 100+ in favor
• The 48 ayes: 37 Republicans
• The 74 nayes: About 50/50 Republican/Democrat

3 reasons why the vote failed?

• fantasy sports regulatory problems in other states
• fantasy sports lawsuits
• insufficient regualtory structure: 

  “The corruption and fraud accusations for this industry are everywhere and we are not sufficiently providing protection to Minnesotans who choose to bet on daily sports gambling entities,” Rep. Jim Davnie said.

  Fox 9 | Bill to legalize fantasy sports gambling fails in Minnesota House

Minnesota Pulic Radio | Fantasy sports bill meets ugly reality of defeat

$1.4 Trillion is the total funding deficit for U.S. state public pension systems.

What’ the $1.4 trillion background?

• Based on 2016 pension data
• Represents an increase of $300 Billion from 2015
• The deficit is the diffrence of $2.6 trillion in assets &  total pension liabilities of $4 trillion
• The increase also reflects a shift down in  the assumed rate of investment returns by state pension systems

Reuters | U.S. state pension funding gap rises to $1.4 trillion in 2016: Pew 

Louisiana is considering legalizing sports gambling, with a favorbale ruling from the US Supreme Court in 2018.

Lousiana’s SB 266 would require 3 steps to legalize sports betting at any location that currently has gambling operations:

(1) US Supreme Court favorble ruling in the New Jersey sports betting case

(2) The Lousiana bill has be enacted

(3) Local Voters must approve allowing sports betting at any parish location that currently permits gambling

The Legislative impetus:

• revenue
• “We need to legalize it, regulate it, tax it,” said Rep. Kirk Talbot, R-River Ridge, who sponsored the fantasy sports bill. 

Times Picayune | Louisiana considers sports gambling, but there are no proposals on how to tax it yet

Harvard Kennedy School’s Government Performance Lab has produced new book, the new Results-Driven Contracting Solutions Book. 

The book offers 8 startegies for local government contracting. Here’s where to begin:

• COMMUNICATE. Clearly lay out  goals and/or problems to be solved
• WORK WITH AND NOT AGAINST YOUR CONTRACTORS. Design the procurement to align contractor interests with achieving those goals.
• NO HELICOPTER PARENTING BY CITIES PLEASE. Provide direction without being overly prescriptive.
• ENCOURAGE COMPETITION. Engage the marketplace to understand vendor capabilities and leverage competition.
• CONTRACT MANAGEMENT. Track progress toward contract goals.
• INCENTIVIZE. Consider tying payment to performance.
• LEARN FROM YOUR CONTRACTING EXPERIENCES.  Use performance data to make future procurement decisions and manage ongoing contracts.
• THINK BROADLY. Strategically manage all key procurements and contracts.