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House | May 12, 2015 | Committee Room | Finance Committee

Full MP3 Audio File

Good morning, at least one person awake, good morning, welcome to finance. Thank you sir, appreciate that. We will conduct a little bit of business here, representative McGrady will help you up first if you want to come on up. Sergeant at Arms, house Sergeant at arms they're Reggie Seals, Marvin Lee, Tim [xx] and Chris McCracken. Our pages for the committee today are Reed [xx] from Wayne county, sponsored by representative Chris Marlon, Nathan Salsa from [xx] County sponsored by Representative Stephen Ross, and Payton [xx] from Gaston county sponsored by representative John Torbett, thank you for being here. We're going get a little out of order from the agenda but the motion will be in order to have the house bill 533 PCS before us, we have a motion by representative Brownley and a second by representative Warren. bill is properly before us. Representative McGrady we recognize you to speak on the bill. Thank you Mr. Chairman and thank you also for the courtesy of allowing me to get back to the appropriation sir. Representative Dolla who wants me there. The PCS simply reflects some kind from the department of revenue, there's no subsistence change between the PCS and the original bill. I will characterize this bill as a present use value corrections bill, it's a very narrow piece of legislation intended to avoid the prospect of paying deferred property very narrow set of circumstances with a very small impact. As you know North Carolina land use for agriculture, forestry, horticulture that meets certain ownership, production and size requirements, is assessed for property tax value said its present use value. This is much lower than fair market value resulting in a reduce property taxes for the land owner. When the land is removed from the PUV program, the seller of the land is required to pay through 3 years of deferred or back taxes at the time of the sale. Now let me give you an example of what this bill does. It relates specifically to land acquired by a land trust that may be required by land trust for example to go on to state force, so if Representative Collins owned some property that he was willing to sell let's say at well below market up a bargain sale, but he need to get a little bit money for, and he sold it to the land trust that was going to hold it a little while and sell it on or give it on to the state. That would trigger these deferred taxes unless you gave the property completely, 100% charitable and so what I'm trying to do here is simply not have deferred Taxes triggered on what is basically a bargain sale, there're very few of these transactions we estimate there were probably 5 or 6 over the last 6 years and moreover the counties have treated them differently. Some counties terribly din't believe that this could trigger deferred taxes and others being literalist decided it was and so that's really what the bill here does. I would say it's good public policy yet we'd remove financial penalty for bargain sales of cultivation land, it would again in small impact but will reduce the cost of land acquisition for state agencies. The land in this case has continued to be used just as forestry land and again, it provides greater consistency and compatibility across the counties. So I I think I'll stop right there Mr. Chairman and open up for questions if there are. are there any questions from the Bill sponsor? Representative Leakey. Thank you Mr. Chairman, my questions for staff, and I think it is Mr. Rony who would take it. And that is, this previously was handled by tax credit, am I not correct? This kind of solution to help the property owner. The current law, I'm not sure what tax credits could have been gotten for this [xx] but under current law as it is right now, if you make a complete gift of the property to one of the qualifying charities so it's

probably historic preservation, or conservation, then you would not own the differed tax. What this bill does is, it allows you so if you get some money then different things happen, so if you get zero money and the current law in this bill, you don't have to paint a deferred tax. If you get money up to the present use value meaning that you didn't capture any benefit of present use you sold it at farm value for example, then you don't have to pay the differed taxes, and then if you get money above the present use value, then it starts to this platter[sp?] system to determine how much of the differed taxes you have to pay, and so the bill is basically three groups, the group that got no money, the group that got money out of PUV, and the group that got money above PUV. Current law already protects group one and this expands it to group two and three. Thank you very much I've also been told that [xx] you can follow up on those law? Right, just so there is no credit per se that's involved with this, there's only the deferral program [xx] and [xx] Thank you. Representative Brawley? For a motion. We're recognizing you for for a motion. Thank you Mr. Chairman, move approval to the PCS to House Bill 533 engrossed, and unfavorable to the original bill, and I believe this is reported to the floor. That's correct Sir, we have a motion that's seconded by Representative Hynes, any other discussion, all in favor say aye, aye. Those opposed like time? Thank you.  Thank you. The next we have House Bill 292 Beach bring their license, Representative Hurley. Recognizing Representative Braley for motion, to have little force, I'm sorry instead of some move. Representative Hurley. I have a different voice this morning, you'll bare with me. The bill is to have some rules and have some authority to check on Beach Bingo. I don't know why when it was done it was not regulated like regular non-profit Bingo. They don't have to get a licence, therefore, they don't have to give reports, and so we don't know who they are where they are. So this is to make them get a licence and renew it every year and that would be $300 and it will go into the general fund and it would give authority to be a little bit more able to check where they are and who they and they are doing the right think. I'll be glad to answer questions I do have the legislative in cacelation. Okay thank you representative Warren. Thank you Mr. Chair just for a motion at the appropriate time. Any other question for the bill sponsor? Seeing none said now be the appropriate this does have the serial referral to appropriations. Thank you sir I move for a favourable report house bill 292 with referral to provisions. representative Apodoc the motion is for favourable for bill that doesn't have referral to appropriations. Any other discussions seeing none all those in favour signify by saying aye "aye" those oppose likes man congratulations. Thank you. Your bill passes. Now house bill 910 it does have referral to appropriation see referral to appropriation representative Avra. Good morning. Thank you Mr. Chair. House bill 910 is to allow over night respect in adult care an adult health care facilities currently respirate is available to individuals through our adult homes and Assisted living facilities and this comes from was a pilot that was run and what we found from that was in terms of anecdotal information, primarily simply because there was some legalistic issues that's sort of interfered with the effectiveness of the pilot itself. But through talking with the

individuals and consumers of PED, reported that in general there was a great acceptance of this simply because in these adult care facilities the people are familiar with the staff, and this population is very fragile and susceptible to anxieties when they're alternating back and forth between different service providers and both the caregivers as well as the patients were very pleased with just the fact that they could stay in the adult day care setting with familiar people that they knew and that would allow their caregivers to get a break and one of the things is really for me impact-full of this is the fact that by opening up more availability for care givers we're enabling more people to care for their family members at home. We each is for us and most especially for them the best patient for their day and night care. And I would just ask for your support. Thank you representative, any question for the bill Representative Courtney. Just for a motion at the appropriate time. Any other questions? seeing none, recognizing you for a motion Representative Carney. I move that we give House Bill 910 a favorable report. Favorable report referral to appropriations That's correct Thank you very much Any other discussions, seeing none, all those in favor [xx] 5 say aye, those opposed like same congratulation Representative [xx] your bill passes and we do stand adjourned. Thank you.