Dear all, I am forwarding this advocacy alert on behalf of AIA California Council. Kindly contact me or Mark Christian with any additional questions. All best, -Will Wright
Audiences
A Vocus alert to all AIA architects in California, asking them to send an email to both their Assembly Member and State Senator.
From
AIA California Council
Subject Line of Email to Architects
Urgent AIACC Advocacy Alert
Email Message to Architects
The California Legislature is considering a significant change to state tax policy that would have a negative effect on many businesses, including a disproportionate effect on many architectural firms.
We hope you can give a couple minutes of your time to communicate opposition to this proposed change in state tax law to your State Assembly Representative and State Senator.
The California State Legislature is considering this significant change as part of its deliberations on the state budget. The change would require businesses that hire independent contractors to withhold 3% of payment to the independent contractor and transfer that money to the state as an advance tax payment from the independent contractor.
Architects hired by businesses would see 3% of fees paid to the architect withheld. Architects also would have to withhold 3% of the fees they pay to consultants and transfer that money to the state.
Architectural firms affected by this proposal would see more than 3% of their fees withheld due to the pass through fee nature of the profession. A firm that uses 40% of the fees it receives for consultants would see 4.5% of its fees withheld. A firm that uses 50% of the fees it receives for consultants would see 6% of its fees withheld.
Please take a couple minutes to easily express your opposition to this proposal.
Subject Line of Email to Legislators
Architect Opposition to 3% Withholding Proposal
Text of Email Message to Legislators from Architects
I am writing as an architect and constituent to inform you of my opposition to the proposal to withhold 3% of payments to independent contractors, which is being considered as part of the state budget deliberations.
This proposal would have a disproportionate effect on architectural firms, resulting in 4.5% to 6% of architectural fees being withheld.
Architects do not keep all of the fees they receive. It is common for architects to use 40% or more of their fees to hire consultants, such as structural and mechanical engineers, as a part of the design team. Yet this proposal does not take into consideration these "pass through" fees.
As a result this proposal would have a disproportionate effect on architects and would require many architectural firms to operate in the red because of excessive withholding by the state.
I respectfully ask you to vote against this proposal.
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Mark Christian, Hon. AIACC
Director of Legislative Affairs
AIA California Council
916.448.9082
____________________________________
Will Wright, Director of Government & Public Affairs
American Institute of Architects / Los Angeles
3780 Wilshire Blvd., Suite 800, Los Angeles, CA 90010
(213) 639-0777 phone | (213)639-0767 fax
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