Tax Reform: Protecting Our Industry & Economy

EvER puT OuT A fIRE ON A STOvE? SEEN A hOuSE ON fIRE? ThAT IS WhAT ThE LAST TWO MONThS hAvE BEEN LIkE fOR NC REALTOR® AdvOCATES

Since May, when competing tax reform plans were rolled out in the North Carolina General Assembly, state mortgage interest and property tax deductions clearly have been in danger. Recognizing these are vital components of a stable and thriving family, housing industry and economy, the NC Association of REALTORS® and our members have responded strongly to the threat. At press time, despite strong public support for preserving the deductions, the fire was still raging and NC REALTORS® and homeowners continued battling the blaze to save the deductions.

“If you believe that home ownership is good for the economy, which it is, and good for family wealth creation, which it historically has been, then government policy should support it, as it has over the last century,” said Mark Zimmerman, chair of the NC REALTORS® legislative affairs committee, in an interview with The Associated Press.

NCAR is encouraged that, due to our advocates’ active outreach, legislators in the House included both housing deductions in House Bill 998 — a proposal sponsored by Representatives David Lewis (R-Harnett), John Szoka (R-Cumberland), Tim Moffitt (R-Buncombe) and Mitchell Setzer (R-Catawba). The bill allows also for the deductions to be considered separate from charitable contributions, and does not impose a transfer tax or tax on real estate services. However, it imposes a combined cap on the deductions totaling: $25,000 for married taxpayers filing jointly, $20,000 for head-of-household filers, and $12,500 for married taxpayers who file separately and for single filers.

While Senate and House leaders discuss possible negotiations behind closed doors, homeownership advocates are urging State Representatives to maintain inclusion of unlimited mortgage interest and property tax deductions in any legislative compromise ahead, and are encouraging them to further ensure the safety and vitality of homeowners, the housing industry and the economy by opposing the Senate’s proposal to limit home deductions to $15,000 for married taxpayers filing jointly ($7,500 for those filing single).

“NCAR offers its sincere thanks to all NC REALTORS® who have reached out—and continue to reach out—to their legislators in support of well-informed and responsible tax reform. Your voice is absolutely critical to keeping communities strong. Our Government Affairs staff looks forward to standing side by side with you — as long as it takes — until the fire is out,” said Patrice Willetts, 2013 president of NC REALTORS®. v

Impact on the State Budget

The General Assembly’s tax reform debate has impacted the State government’s budget determinations. In late May, the Senate released its plan for the budget for the next two years, followed by the House’s release of its version in early June. The House and Senate will meet in conference committee to sort out their differences. They intend to hold off on finalizing an agreement, however, until an agreement is reached on a tax reform plan, as it may include revenue cuts to the budget.

Governor of North Carolina Pat McCrory has said that he is reviewing multiple analyses of tax reform, and particularly considering how proposed cuts to tax revenue would impact the efficiency and effectiveness of State government operations.

With tax reform and budget agreements currently pending in House–Senate negotiations, both chambers passed a continuing resolution (CR) on June 25. The CR will allow the State government to continue operating at 95 percent of its current spending level into the next fiscal year, until the final budget is voted on in the coming weeks. The CR will be in effect July 1 through July 31.

Sharpen Your #1 Sales Skill: Communication

NCAR members are welcome to the luncheon presentation: “Communicating Beyond the Generational Divide”

Thursday, August 22, 2013

11:30 a.m. – 2 p.m.

$20 registration fee

High Point Regional Association of REALTORS® 1830 Eastchester Drive, High Point, NC

Communication expert, John Ansbach, will explain generational preferences and expectations in the marketplace. If you want others to wonder why you are so successful, then you need to come to this event!

Register online at www.ncrealtors.org

By KRISTIN MILLER RPAC MANAGER