• • Week 20 Update
• • Quote of the Week

Week 20 Update

As we predicted in last week’s update, the House passed its version of the budget in the wee hours of Saturday morning.  NCHBA was successful in getting an important amendment passed that clarified that the term “repair, maintenance, and installation services” in the proposed sales tax expansion provision did not apply to real property.  The vote on final passage of the budget was 64-53, with two Democrats voting against the budget – Van Braxton (Lenoir) and Cullie Tarleton (Watauga).  Also as expected, the Senate voted unanimously to not concur with the House budget, thus starting the conference process.  The budget conference is a closed door process where the conferees try to work out the differences in the two versions of the bill. 

The business community continues to work on the issue of the expansion of the franchise tax to include Limited Liability Business Entities.  These include limited liability companies, limited partnerships, limited liability partnerships and limited liability limited partnerships.  The proposed franchise tax rate will be $1.50 per $1,000 of value for the greatest of 1) the apportioned capital base of the business entity; 2) 55% of appraised value of real and tangible property in NC; or 3) total actual investment in tangible property in NC.  While the Senate’s revenue package did expand the franchise taxes to cover Limited Liability Corporations, the real estate part of the equation was added by the House.  Further complicating things this week was the Governor's request for more revenue so that she can restore the proposed education cuts.  A final version of the bill could be released as early as Monday.

There is nothing new to report on the issue of coastal insurance, as the General Assembly has been focusing exclusively on the budget.  The compromise bill coming from House Majority Leader Hugh Holliman (D-Davidson) is expected to be scheduled for discussion in the House Insurance Committee next week.  There is a rumor that President Pro-Tempore Marc Basnight has been working on his own version of a coastal insurance bill, though no one has seen it yet.

On another note, SB 1018 Ban Certain Single-Use Bags moved very quickly through the House this week.  The bill would ban large stores from using single-use plastic bags on the Outer Banks, but would allow small retailers to still use them.  Several members of the Senate Pro-Tem’s staff were present for the House Commerce Committee meeting and in the House chambers when the bill was discussed.  The message to House members was very apparent -- vote for this bill, or else!

The House Energy and Energy Efficiency Committee met again this week to discuss its “omnibus” HB 512 Incentives for Energy Conservation.  In previous Legislative Updates, we reported that the committee had expressed a desire to roll together several bills that proposed various energy tax credits.  NCHBA has been working with the committee to ensure that the energy tax credits for new homes be expanded to include all programs, not just the Healthy Built Homes Program, as cited in the original bill.  The committee has not yet voted on the “omnibus” bill, though this week it did look at the various amendments and fiscal impacts.  Some committee members expressed a need for the credits to promote energy conservation, though they are unsure of the credits' future due to the budget situation.  The committee will vote on the bill at its next committee meeting.

At a meeting on Thursday, the House Judiciary II Committee released a new version of the proposed Annexation Changes.  The bill was crafted by combining key parts of several other annexation bills.  The committee heard from seven different speakers and is expected to start dealing with amendments and debate early next week.

Three new members of the General Assembly have been appointed in the last few weeks.  Dan Ingle (R-Alamance) was appointed to replace Representative Cary Allred (R-Alamance) following Allred’s resignation.  Representative Bonner Stiller (R-Brunswick) announced his resignation, and Frank Iler (R-Brunswick) was appointed to his seat.  Newly-appointed Senator Dan Blue’s House seat was filled by appointed member Rosa Gill (D-Wake).  
 

Top

Quote of the Week

Top