North Carolina Association of REALTORS®
April 22-23, 2013
FRAR Members Present: Wendy Harris, James Sherrill, Chet Oehme, Steve Cohan, Suzanne Pennick, Jay Dowdy, Johnniecia Corwise, Dave Evans, Ralph Reagan, Swyan Hamlet, David Leet, Queen Wheeler, Zan Monroe, Jane Cannon, Debbie McFayden, Cheryl Spears
What Happened: Various meetings took place at the NCAR Legislative Meetings in Raleigh. The following talking points are from those meetings. On Wednesday April 24, FRAR members sat down with Senators Wesley Meredith, Ben Clark and Representatives Marvin Lucas, John Szoka, and Elmer Floyd to discuss various issues including tax reform that will have an impact on the Fayetteville region.
Below are the links to the legislative talking points as well as the legislative committee packet.
Legislative Committee Talking Points:
- A full package has NOT been fromally introduced
- Proposals will most likely come from the Senate
- Currently there are four bills filed in the NC Senate and one in the NC House
Senate Bill 363 – Repeals most state and local privilege taxes and replaces them with a simplified business privilege tax. For LLC’s the maximum would be $5,000. According to Cady Thomas (NCAR Government Affairs Director), “this tax could potentially stop invenstment in NC”.
Senate Bill 394 – Overhaul of the tax code. Potentially eliminating the MORTAGE INTEREST DEDCUTION along with the PROPERTY TAX DEDUCTION.
Senate Bill 669 – Addresses the state personal income tax rates by pasing in reductions over the next two years.
Senate Bill 677 – Addresses the state corporate income tax rates by phasing in a reduction and ultimately repealing it altother.
Tax on Services – Possible 8% tax on attorney fees, appraisers, home inspectors, broker fees and many more.
Transfer Tax – As of 4/29/13 the transfer tax fee of 1% has not been proposed but could come back to the table at a later time.
Other Important Bills related to the Real Estate Industry:
House Bill 150 – Clarify that muncipalities do not have the authority to regulate the appearance of single-family residential structure except under limited circumstances such as local/national historic districts, historic landmarks, restrictive covenants or limitations or requirements pertaining to structural safety and sound building. As of 4/29, this bill is in the Senate Rules Committee.
House Bill 773 – Prohibits local government rental registration programs, permits, fees, and Certificates of Occupancy as a condition of operating rental housing.
Sidebar: If HB 733 passes, the current Fayetteville “Rental Action Management Program” will be challenged financially due to lack of funding from fees collected.
OnWednesday, the FRAR group met with Sentate Pro Tem Phil Berger, Senators Meredith and Clark as well as House Representatives Floyd, Szoka and Lucas to discuss the talking points attached above. Below are some of their comments.
Senate Pro Tem Phil Berger:
“We have 223 million dollars to balance in the medicaid budget…medicaid is eating us alive.”
“As for tax reform, we would like North Carolina to look like Texas or Florida. Right now we’ve been moving to be like California.”
“We need to cut taxes for families, close loop holes and excemptions and eliminate the death tax…you can’t afford to die in North Carolina.”
“In two weeks we will make announcements on tax reform and I think you will like what you hear. We’re going to be light stepping on your toes.”
“The Mortgage Interest Deduction is very important to REALTORS® and homeowners..”
Senator Wesley Meredith:
“We have a problem with peer groups getting together on bills. All of the decision haven’t been made yet…we had a 5 hour meeting last Thursday.”
“On tax reform, we need to take a more level approach, softer phased in over 5 years. Peer groups like yourself have a place at the table. We need to reach out to your industry. We have to make tax reform attractive not detractive.”
Conversation regarding a senior citizen and possibly taking away their Mortgage Interest Deduction….”What is $300 or $500 dollars a year? A few dollars a month?”
Representative Marvin Lucas:
On taxes…”Killing the goose that lays the golden egg.”
On taxes…”Why change? Cut a piece of this string and tie it and make it longer.”
“You create better citizens when you own a home.”
Representative John Szoka:
On taxes…”The Governor and the House are closer together on our concepts versus the Senate.”
On a transfer tax…”From all the plans I’ve seen it’s gone and the Mortgage Interest Deduction will be gone as well.”