Archive for the ‘Personal Property’ Category

Bill Would Tighten Tax Incentives on Pollution in Florida

Tuesday, May 14th, 2013

The Florida Legislature has approved a bill that would cause businesses to no longer receive state tax breaks because of perceived pollution on their properties. According to the Orlando Sentinel, in 2011 and part of 2012, Florida companies received as much as $11 million in Brownfield economic-development tax breaks, even though many of which were building on ground that does not appear to be contaminated. These companies were able to get breaks anyways because the law is currently written in a way that only requires the perception of contamination, not actual proof.

The bill would change the requirements for the incentive to be only for companies who are on or next to property where a pollution-cleanup agreement with the government is in place. On top of that, it would require state economists to conduct more rigorous studies to see what benefits business tax incentives create.

To read the full article from the Orlando Sentinel, click here.

Posted in Eastern, Environment, Green Initiatives, Personal Property, Pollution Control, Real Property | No Comments »

Georgia Governor Signs Fulton County Property Tax Cap Bill

Wednesday, May 8th, 2013

Georgia Governor Nathan Deal has signed House Bill 604 this week which would prohibit Fulton County from raising property tax rates for the next two years. According to The Atlanta Journal-Constitution, if a court doesn’t overturn it, the Bill will require approval by a supermajority of county commissioners for tax increases after January 2015. Many believe that this measure is a long overdue check on the County’s spending.

Those in opposition however believe that the Bill is an illegal intrusion into local government affairs. They are claiming that lawmakers are too eager to take a roll in local government and this specific item is an overreach due to the fact that the County has recently cut spending and haven’t raised property taxes since 1991.

To read the full article from The Atlanta Journal-Constitution, click here.

Posted in Eastern, Economy, Personal Property, Real Property | No Comments »

Property Taxes in Texas Bring Economic Advantages

Thursday, May 2nd, 2013

Despite its unpopularity among Texans, property tax collections might bring more economic advantages than once thought. While Texas property owners argue that an expanded sales tax would have a more positive impact on economic growth, many studies have found otherwise.

According to an article from Tierra Grande Magazine entitled “In Defense of the Property Tax,” it is commonly believed that property taxes are a burden to Texas citizens and a major hindrance to the economy. However, research indicates that the benefits far outweigh the perceived setbacks. If Texas were to move to a consumption-based tax, nearly all current exemptions and exclusions from the sales tax would potentially be eliminated for the extended tax base, including real estate. In fact, research indicates that a 25 percent sales tax rate would be required to uphold current revenues without such expansions. This change is so high-risk that the effects of such an increased sales tax would offset any property tax savings.

Possibly the biggest factor in favor of property taxation over an expanded sales tax is stability. According to the article, one study found that year-to-year variation in sales tax was more than 40 percent higher than property tax collections between 2000 and 2011. If the change were made, local governments would likely suffer from or unstable revenue streams.

To read the full article from Tierra Grande Magazine, click here.

Posted in Economy, Mid America, Personal Property, Real Property | No Comments »

Property Tax Exemption for Renewable Energy Passes CT Senate

Monday, April 29th, 2013

A Bill that would exempt commercial and industrial renewable generation equipment from property tax in the state of Connecticut has passed the State Senate. According to Power Engineering, Senate Bill 203 would extend an existing tax credit for residential renewable energy equipment to also include commercial and industrial installations. The Bill’s leader, Senator Bob Duff, believes that this property tax exemption will prove to be a great incentive for more renewable development as the state tries to encourage more clean energy.

The tax break should help with encouraging more commercial properties across the state to implement renewable energy. The Bill would expand a current property tax exemption for most sources of renewable electric generation, including all Class I resources, as well as solar thermal and geothermal resources used for heating. Currently the exemption only applies to such sources installed in a residential setting.

Posted in Complex, Eastern, Economy, Environment, Green Initiatives, Industrial & Manufacturing, Personal Property, Pollution Control, Real Property | No Comments »

Final Property Tax Bill Advances in Montana House, Senate

Thursday, April 25th, 2013

A proposed bill to lower the property tax on business equipment has advanced in the Montana House and Senate this week. According to the Missoulian, Senate Bill 96 aims to exempt from property taxes the first $100,000 worth of business equipment, up from the current $20,000. Additionally, the tax rate would go to 1.5% for the first $6 million worth of equipment, an increase from the current $3 million.

If passed, SB96 is expected to save businesses in Montana $17.5 million over two years. While it is still premature to consider the bill passed, both sides seem to agree that it is worthwhile in the fact that it helps out both small and mid-sized businesses.

To read the full article from the Missoulian, click here.

Posted in Complex, Economy, Industrial & Manufacturing, Personal Property, Western | No Comments »

Texas Bill Offers Urban Agriculture a Boost in Property Tax Rates

Tuesday, March 26th, 2013

Texas House Bill 1306 is hoping to fairly apply the rules governing how land used for agriculture is assessed when applied to smaller operations. According to the San Antonio Business Journal, the Bill aims to clarify the existing tax code pertaining to what land can be appraised as qualified agricultural land so that property taxes are based on a lower valuation. Currently, even though no minimum requirement exists, many counties require that tracts be at least five acres to obtain agricultural valuation, leaving many small operations stuck with unfair values.

The basis of the bill is to begin to treat the smaller farmers like large operations considering they are able to raise significant amounts of crops on small acreages. Opponents of the bill argue that the expansion of tax preferences would cause a shift of hundreds of millions of dollars in tax burden to Texas homeowners, with predictions of the fiscal cost amounting to $500 million by 2018.

To read the full article from the San Antonio Business Journal, click here.

Posted in Economy, Mid America, Personal Property | No Comments »

The Potential Impact of Sequestration on Property Taxes

Friday, March 22nd, 2013

While financial reports indicate a recovering economy, February’s sequestration continues to cast a shadow over hopes of a full-fledged return to the booming economy of pre-downturn days. Manufacturing and industrial corporations throughout the United States are generally reporting higher than ever revenues and margins, and they are doing it with smaller workforces than they utilized prior to 2008. Clearly, companies are operating more productively and more efficiently than perhaps ever before. With the stock market recently reaching new record highs, shareholders in turn are seeking continued growth that many predict can only be realized if companies return to previous hiring levels yet continue to operate in today’s high efficiency manner.

So for the short-term, while labor costs may increase as more jobs are created, expense management will remain a critical component of every financially prudent company.

To read the full article by Bob Fuchs, Senior Managing Consultant, Area Leader & Principal at Paradigm Tax Group, click here.

Posted in Complex, Economy, Industrial & Manufacturing, Personal Property | No Comments »

Idaho House and Senate Pass Personal Property Tax Repeal

Thursday, March 21st, 2013

The Idaho House has passed a bill that would exempt 90% of Idaho businesses from personal property taxes. According to MagicValley.com, the passage came after a short debate, with most lawmakers speaking in favor of the repeal, and will now move on to the Senate for consideration. This was the third personal property tax repeal proposal the House had considered, with the first two receiving no votes during their public hearings.

The bill was crafted by the Idaho Association of Counties, and would exempt the first $100,000 of a business’s appraised personal property tax per county, and would extend to operating property like telecommunications. The state would replace any lost revenue for local government entities at a cost of approximately $20 million a year.

UPDATE: On March 26th the Senate unanimously passed House Bill 315. The Bill will allow an exemption from the tax for businesses in the state on the first $100,000 worth of purchases of personal business property, and businesses would also be exempt from paying the tax on new purchases of items costing less than $3,000.

Posted in Complex, Economy, Industrial & Manufacturing, Personal Property, Western | No Comments »

Recent Court of Appeals Rulings Level the Playing Field in North Carolina

Friday, March 15th, 2013

Recent Court of Appeals rulings in favor of IBM and Parkdale America, LLC have given property taxpayers in the state of North Carolina hopes of a fair shake now and in the future. The rulings show that there is hope for a level playing field for taxpayers by requiring the North Carolina Property Tax Commission (PTC) to not only reach a decision, but also explain the basis for its decision in sufficient detail such that it can withstand scrutiny by the Court of Appeals.

In the recent IBM case, it was found that the PTC failed to adequately explain their decision to reject IBM’s appeal of their machinery and equipment in order to achieve a lower tax bill. Though the PTC was justified in their decision, the Court of Appeals reversed it due to the fact that it failed to address adequately key issues necessary to arrive at the ultimate decision required. The same outcome was true for Parkdale America, LLC regarding their real property appeal. The Court of Appeals found that the PTC did not contain the reasoned analysis necessary to reject Parkdale’s appeal.

For more information on these landmark cases and both real and personal property taxes in North Carolina, contact Cameron Moore, Senior Managing Consultant at Paradigm Tax Group, at (678) 954-6002 or cmoore@paradigmtax.com.

Posted in Eastern, Economy, Personal Property, Real Property | No Comments »

Competing Personal Property Tax Repeal Measures in Idaho

Thursday, March 7th, 2013

The Idaho House is set to introduce two competing bills, one backed by counties, one by industry, which will cut the state’s business personal property tax. According to magicvalley.com, Rep. Gary Collins, House Revenue and Taxation Committee Chairman, will schedule the hearings by the end of the week.

The first bill, from the Idaho Association of Counties, would eliminate the tax for 89% of businesses in Idaho and mirrors a 2008 law that has yet to take effect. The total cost to the state would be around $19 million in lost revenue. The other bill, from the Idaho Association of Commerce and Industry, could cost up to as much as $120 million. The IACI bill would only allow for regulated utilities to get the break on new equipment.

Posted in Complex, Economy, Industrial & Manufacturing, Personal Property, Western | No Comments »

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