City of Fayetteville Parks & Recreation Bond Referendum Passes!

The City of Fayetteville Parks & Recreation Bond Referendum passed last night with a vote of 21,089 for and 14,661 against.

The 35 million bond will include the following projects and rehabilitations.

  • Senior Centers (2)
  • Tennis Center
  • Sports Field Complex
  • Skateboard Parks (2)
  • Cape Fear River Park – Downtown Riverfront
  • Existing Park Improvements (7)
  • Splash Pads (7)

When will the projects begin?

The City will have seven years (can be extended to 10) to issue/sell the bonds.  Construction of all projects must begin within that period.  Preliminary work has already been completed on some of the projects.  Under the current schedule, residents should see something initiated every year of that period, but all projects will not be completed until 2024.

How will taxes be applied?

Taxes are applied to all assessed value, which includes both real and personal property, such as your home, vehicle or boat.

What will it cost Fayetteville homeowners? (from city memo)

A homeowner with a home valued at the City average of $125,800 would pay just $1.42 monthly or $17 annually, for a total of just more than $339 over the entire bond period. And that is only if the City uses all of the $35 million for the bond – if we use less than that amount it will cost less per citizen.

Other cost examples are listed below:

Tax Rate

Property Value

Monthly Contribution

Annual Contribution

Life-of-Debt Contribution

Monthly Equivalent:

$0.0135

$75,000

$0.84

$10.13

$202.50

Can of Soup

$0.0135

$100,000

$1.13

$13.50

$270.00

Snack Bag of Chips

$0.0135

$125,800

$1.42

$16.98

$339.662

Liter Bottle of Soda

$0.0135

$150,000

$1.69

$20.25

$405.00

3 Cookies

$0.0135

$200,000

$2.25

$27.00

$540.00

Large Cup of Coffee

Update on the Atlantic Coast Gas Pipeline for Cumberland County

The Association luncheon was held on Tuesday and representatives from Dominion Resources and Piedmont Natural Gas were in attendance.  Bruce McKay from Dominion gave an update on the Atlantic Coast Pipeline.

Background on Pipeline:

The Atlantic Coast Pipeline (ACP) is an interstate natural gas pipeline that will serve multiple public utilities and their urgent energy needs in Virginia and North Carolina. The natural gas transported safely by this project will be used to generate electricity as well as to heat homes and run local businesses.

By providing access to additional low-cost natural gas supplies, the ACP will increase the reliability and security of natural gas supplies in Virginia and North Carolina.

Talking Points:

  • Total natural gas demand in our region is estimated to rise at 3.5 percent annually, increasing nearly 165 percent from 2010 to 2035
  • Projected timeline for the pipeline to be installed and operational is late 2018
  • A proposed route is being studies.  Dominion is collecting data through surveys and consultations with landowners and other stakeholder to determine the best route with the least impact to the environment, and and to historic and cultural resources
  • In Cumberland County the pipeline will run 39.5 miles and affect 190 parcels and 143 landowners

To view the entire power point click ↓
Atlantic Coast Pipeline Power Point

Quotes from Dominion:

“This is the most prolific gas supply in the U.S.”

“This is going to be a game changer.”

“Currently North Carolina gets 80% of gas from a transfer line.”

“Pipeline will operational by 2018.”

“50 feet will be maintained next to the pipeline.”

“The pipeline will be 3 feet in depth.”

What’s Next?

Pipeline Open House

FAYETTEVILLE, NC: Tuesday, March 29, 2016, 5 p.m. – 7:30 p.m., Doubletree Hotel, 1965 Cedar Creek Road, Fayetteville, NC 28312 (View newspaper ad; also available in Spanish).  We are currently evaluating alternative routes in the Fayetteville area as part of an ongoing effort to find the best pathway for the Atlantic Coast Pipeline. We invite all those who are interested to attend this upcoming open house to learn more about the project.

Pipeline Contact Information:

Website:  www.dom.com/ACpipeline

Facebook:  Atlantic Coast Pipeline

Landowner Toll-free Number:
888-895-8716

General Inquiry Toll-free Number:
844-215-1819

 

 

From the North Carolina Association of REALTORS® – New Sales & Use Taxes

Image result for north carolina association of realtors

 

Impact of New Sales and Use Taxes on NC REALTORS®

March 3, 2016

Following significant discussion during last year’s session, legislators presented numerous areas where they desired to have sales and use tax applied to both goods and services in certain transactions. As of March 1, 2016, these changes have taken effect and impact multiple areas where REALTORS® and their clients may be directly affected.

Below you will find an analysis of some of the most relevant changes impacting the real estate industry.

General Overview
In general, many of these changes seek to tax the labor provided in the installation of already taxed products. Based on a review of the changes, most of them fall into area such as home and automobile modification or update. Services ranging from carpet installation to clothing repair and watch repair are included in the list of new taxable services. A full listing of the March 1 tax changes can be found here.

These changes fall into two categories: Retail Sale and Installation and Repair, Service and Installation Services. Many areas fall into both categories so it is important to examine your service agreements carefully.

While most of these taxes are clear-cut, others have multiple layers of contingencies which apply to them. A few such examples are discussed in the section below focusing on New Home Construction and Real Property Renovation. Other examples are found in circumstances where the individual completing the service is not engaged in the retail activity related to the service. Additionally, there a multiple instances in the new changes where there is no tangible item provided but the service fees are taxable, such as in the case of tire repair.

New Home Construction and Real Property Renovation
Of all of the changes, the potential impact on these two circumstances has caused the most significant amount of questions.

To begin with, the March 1 changes do not alter existing law allowing for no sales tax to be applied to installation services in new home construction or in renovation to real property. As it has been previously, sales tax will continue to be applied to the materials used in the project. Existing law allows for an exemption for those classified as a “real property contractor” (as defined by GS 105-164.3(33a) and these changes do not impact that exemption.

Where there may be some confusion is related to subcontractors, especially when it may be unclear as to their specific business. In circumstances where a subcontractor are themselves classifies as a “real property contractor”, their labor will remain exempt. The example provided in the Department of Revenue’s explanation of this circumstance is a carpet installer who provides the materials for the project (carpet, padding, etc.) as a component of their contract but that installer is not themselves classified as a retailer. Additionally in circumstances where a person’s sole business activity is providing repair, maintenance, and installation services, that person is also exempt from the sales tax on labor as that person is not classified as a retailer. Finally, in circumstances where the subcontractor is performing services such as framing where they have no retail component, they are also exempt from this sales tax.

The opinions and analysis provided herein are those of NC REALTORS® Government Affairs Department staff. They are intended solely for educational purposes and should not be a substitute for consultation with your attorney, Certified Public Accountant (CPA), or the North Carolina Department of Revenue.

 

 

 

North Carolina Association of REALTORS® – Update on NEW Sales Tax

Impact of New Sales and Use Taxes on NC REALTORS®

March 3, 2016

Following significant discussion during last year’s session, legislators presented numerous areas where they desired to have sales and use tax applied to both goods and services in certain transactions. As of March 1, 2016, these changes have taken effect and impact multiple areas where REALTORS® and their clients may be directly affected.

Below you will find an analysis of some of the most relevant changes impacting the real estate industry.

General Overview
In general, many of these changes seek to tax the labor provided in the installation of already taxed products. Based on a review of the changes, most of them fall into area such as home and automobile modification or update. Services ranging from carpet installation to clothing repair and watch repair are included in the list of new taxable services. A full listing of the March 1 tax changes can be found here.

These changes fall into two categories: Retail Sale and Installation and Repair, Service and Installation Services. Many areas fall into both categories so it is important to examine your service agreements carefully.

While most of these taxes are clear-cut, others have multiple layers of contingencies which apply to them. A few such examples are discussed in the section below focusing on New Home Construction and Real Property Renovation. Other examples are found in circumstances where the individual completing the service is not engaged in the retail activity related to the service. Additionally, there a multiple instances in the new changes where there is no tangible item provided but the service fees are taxable, such as in the case of tire repair.

New Home Construction and Real Property Renovation
Of all of the changes, the potential impact on these two circumstances has caused the most significant amount of questions.

To begin with, the March 1 changes do not alter existing law allowing for no sales tax to be applied to installation services in new home construction or in renovation to real property. As it has been previously, sales tax will continue to be applied to the materials used in the project. Existing law allows for an exemption for those classified as a “real property contractor” (as defined by GS 105-164.3(33a) and these changes do not impact that exemption.

Where there may be some confusion is related to subcontractors, especially when it may be unclear as to their specific business. In circumstances where a subcontractor are themselves classifies as a “real property contractor”, their labor will remain exempt. The example provided in the Department of Revenue’s explanation of this circumstance is a carpet installer who provides the materials for the project (carpet, padding, etc.) as a component of their contract but that installer is not themselves classified as a retailer. Additionally in circumstances where a person’s sole business activity is providing repair, maintenance, and installation services, that person is also exempt from the sales tax on labor as that person is not classified as a retailer. Finally, in circumstances where the subcontractor is performing services such as framing where they have no retail component, they are also exempt from this sales tax.

The opinions and analysis provided herein are those of NC REALTORS® Government Affairs Department staff. They are intended solely for educational purposes and should not be a substitute for consultation with your attorney, Certified Public Accountant (CPA), or the North Carolina Department of Revenue.