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As predicted, week 12 was a busy one for NCHBA – but also a successful one!
S.B. 117 Clarifying Development Moratoria Authority passed out of the Senate Commerce Committee on Tuesday and was subsequently on the Senate floor for approval on Wednesday. Senator David Hoyle (D-Gaston) was the lead sponsor of the legislation that stated that development moratoria are to be used as a measure of last resort and not as a planning tool. In committee, Senator Debbie Clary (R-Cleveland) spoke in favor of the bill and offered her own local example of a city using rolling moratoria to curb development. Despite opposition by the League of Municipalities, the bill passed out of committee by voice vote with minor opposition. On the floor, Senator Hoyle gave a frank description of the problem and the proposed solution, while Senator Daniel Clodfelter (D-Mecklenburg) observed that this change was necessary to return the law to its original intent in the zoning and planning revisions passed in 2005.
The bill passed 41-8, with Senators Atwater, Dorsett, Graham, Kinnaird, McKissick, Nesbitt, Stein and Vaughan voting against it. Thus, S.B 117 successfully met the crossover deadline and now has a chance of passage during the 2009-10 legislative session.
H.B. 954 Currituck Development Rights was heard in the Local Government II committee on Wednesday. The bill, introduced by Representative Bill Owens (D-Pasquotank), was at the request of the county commissioners and would authorize Currituck County to grant transferable development rights (TDR) in exchange for preservation of undeveloped land in the county’s rural areas. A TDR program includes the establishment of sending zones (in this case, agricultural land) and requires the creation of receiving zones which allow additional density to accommodate the development rights that are transferred from the sending zones. However, due to market conditions and environmental concerns (such as wetlands, poor soils and coastal stormwater requirements) the development in receiving zones is not likely to happen. This results in low demand for TDRs and an artificial market in the sending areas.
NCHBA is opposed to all transfer of development rights (TDR) bills due to the inability of the county to guarantee that the receiving zones will actually be developed. On a vote of 6-7, the H 954 failed to receive a favorable report.
Also on Wednesday, the Senate Finance Committee debuted their new revenue package. According to Senator Clodfelter, the package is the first overhaul of the tax system in almost 80 years. Overall, the package reduces most tax rates, though it does aim to tax more services in an effort to broaden the base. As presented, the plan would not tax services associated with new construction, though any service beyond the building process would most likely be taxed. For example, landscape maintenance and repair services would be subject to tax, as would remodel services. However, room additions (classified as new construction) would not be taxed. NCHBA staff anticipates a blurry line between repairs and new construction, as we know that most repair jobs turn into construction! According to Senate Tax Counsel, the new proposal in the area of home building/repair is based on the tax structure of New Jersey. NCHBA will continue to work with the Senate to make the plan easier to understand as it relates to our industry.
Next week, updates on committee action relating to H.B. 116 Railroad Corridor Management and S.B. 761 Street Construction/Developer Responsibility.
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