Attachment 3
January 29, 2025
The Honorable Caroline Menjivar
6150 Van Nuys Blvd., Suite 400
Van Nuys CA 91401
RE: INCENTIVIZED DEVELOPMENT
Dear Senator Menjivar,
The City of Burbank is firmly committed to the continued development of new property and redevelopment of existing properties to address housing shortages and foster economic growth. As such, we would like to encourage you to consider introducing new legislation to incentivize the development of new property.
One key strategy that must be considered to incentivize development is the reduction of capital gains tax.
By reducing the tax burden on profits from the sale of properties, property owners will be encouraged to sell their homes or reinvest. The City of Burbank has seen some stagnant property ownership and would benefit from lower capital gains tax rates for properties that are held for over 10 years. Additional considerations for capital gains tax relief could include tiered reductions based on high priority areas and temporary incentives to encourage immediate action. Additionally, capital gains tax relief should be provided for sale proceeds that are reinvested in new property developments, specifically in areas that address affordable housing or environmentally modern infrastructure.
Reducing capital gains tax is a critical element to encouraging new investment in the housing market, boost the City’s housing supply, and bolster economic development. Specifically, indirect impacts may include, but not limited to, benefits to local businesses, real estate services, and construction services.
Thank you for considering our perspective on this critical matter.
Sincerely,
Burbank City Council
Cc: Kyra Emmanuels, Emanuels Jones & Associates
Jennifer Quan, Cal Cities Regional Public Affairs Manager, LA County Division
January 29, 2025
The Honorable Nick Schultz
300 East Magnolia Boulevard, Suite 504
Burbank CA 91502
RE: INCENTIVIZED DEVELOPMENT
Dear Assemblymember Schultz,
The City of Burbank is firmly committed to the continued development of new property and redevelopment of existing properties to address housing shortages and foster economic growth. As such, we would like to encourage you to consider introducing new legislation to incentivize the development of new property.
One key strategy that must be considered to incentivize development is the reduction of capital gains tax.
By reducing the tax burden on profits from the sale of properties, property owners will be encouraged to sell their homes or reinvest. The City of Burbank has seen some stagnant property ownership and would benefit from lower capital gains tax rates for properties that are held for over 10 years. Additional considerations for capital gains tax relief could include tiered reductions based on high priority areas and temporary incentives to encourage immediate action. Additionally, capital gains tax relief should be provided for sale proceeds that are reinvested in new property developments, specifically in areas that address affordable housing or environmentally modern infrastructure.
Reducing capital gains tax is a critical element to encouraging new investment in the housing market, boost the City’s housing supply, and bolster economic development. Specifically, indirect impacts may include, but not limited to, benefits to local businesses, real estate services, and construction services.
Thank you for considering our perspective on this critical matter.
Sincerely,
Burbank City Council
Cc: Kyra Emmanuels, Emanuels Jones & Associates
Jennifer Quan, Cal Cities Regional Public Affairs Manager, LA County Division