AACSC Annual Legislative Day Event

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SB 8, a bill to expand sales and use taxes to include taxes on services, even those provided by landlords, has been introduced in the California State Legislature by newly-elected Senator Bob Hertzberg. If passed, all rental income will be subject to charging a sales tax on rent and paying sales tax on every service provider that we rely upon, including pest control, handymen, electricians, and plumbers.

The Apartment Association has made this a top priority bill for defeating in 2015. And if that wasn’t enough to wet your appetite to talk with our own members of the State Assembly and Senate, you may find AB 396 (Jones-Sawyer) more objectionable. It proposes to prohibit landlords and managers from discriminating against any person who has a criminal record… including sex offenders and others convicted of crimes against persons and property. An important step in defeating the bills will be through a strong and coordinated effort at this year’s annual Apartment Association Legislative Day (or “Leg Day” for short).

Leg Day is one of the more important days of the year for the Association. It is the one day in which the Association’s leadership and its members get a chance to make a real difference in the public policy and laws affecting the residential rental property industry. On Leg Day we have the full attention and ear of the State Senators and Assembly Members representing our districts. It is an opportunity for us to discuss issues of great importance to our membership and our industry.

On Leg Day we also team up with other apartment associations to deliver a cohesive message about current legislation that hurts our industry. This year, one of the bills all of the apartment as so ciations will be lobbying aggressively together will be the tax-on-services bill, SB 8. As currently written, the term “services” encompasses any and all land lord services. That means despite that fact that rental income is taxed as income, it will also be subject to an additional sales tax.

Aren’t we taxed enough?

This year’s Leg Day event at the State Capitol in Sacramento, California, is scheduled fittingly for “Tax Day,” April 15, 2015. On Tax Day, our members will have the opportunity to sit down with state lawmakers to explain to them why a tax on rental income is obnoxious and offensive.

We are inviting all of our members to participate. Legislators need to hear from our members because it is our apartment owners who are seriously impacted by the laws they vote on. Hearing from our members has also made a real difference over the past few years—years in which our lobbying efforts have helped defeat every single bill that was bad for our industry. Last year for example, we lobbied three bills on Leg Day which included two bills restricting a landlord’s right to go out of business under the Ellis Act, and another bill allowing tenants an unrestricted right to grow food crops on the rented property.

Due in large part to the lobbying efforts of our members and the other rental property owners who attended Leg Day last year, the Ellis Act bills were defeated, and the gardening bill was substantially amended to give property owners discretion to limit the size and establish the area where food crops may be grown. In previous years, our Leg Day lobbying has helped defeat other egregious bills, like Senator Mark Leno’s bill from 2013 which would have given ten ants a right to sue for interest on their security deposits.

The voices of our membership have been strong and powerful. We hope to continue in that tradition.

Those who volunteer will be well prepared. Led and trained by our very experienced team of lobbyists, volunteers will be well prepared and equipped to sit down with their legislator to discuss apartment industry policies. We will provide members with detailed analysis of all the laws that will be lobbied that day, and background information on all of the legislators in our districts. Members will also be trained, and provided a packet containing everything they will need to feel confident and have a successful day.

We look forward seeing our at the State Capitol on Leg Day in full force. Happy Tax Day!


Ron Kingston can be reached at This e-mail address is being protected from spambots. You need JavaScript enabled to view it

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Contact AACSC

Apartment Association,

California Southern Cities
333 W. Broadway St., Suite 101
Long Beach, CA 90802
(562) 426-8341

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