LLC Taxation: An Expensive Propostion?

I have had a couple questions regarding the LLC Tax that was brought up by Pete Chenery of Realty World Broker Network, during the NexCore Showcase. I asked Pete if he could give us any info regarding it and this is what Rick Zechini of NCAR responded back with. I have decided to directly quote the information that was sent to Pete.

"Both the Senate and the House are considering taxation of LLCs. The House budget includes such a provision, which in very general terms amounts to $825 tax per million of value ( both real property and personal property). Working with others, NCAR pushed an amendment in the House Finance Committee to extract this from the House budget, but it failed by a vote of 14-14

Details of what the Senate has in mind are less clear, as their "finance package" is more of an ever-evolving conceptual idea. The best guess is that it would be roughly the same ($825 per million of value). Again, the senate didn't include this in the budget.

The leaders in both chambers are negotiating the budget in what is called a conference committee. They have tentatively agreed on how much they will spend and how much new tax revenue budget will include ($990 million for the first year of the budget). What they haven't agreed on is how they will spend all of the money or where the extra tax revenue will come from.

We are working with a coalition on interested parties (hotels, apartments, REITS, home builders, developers, etc.) to take LLC taxation off the table. "

That's all I have for now. As I get more information, I'll be happy to pass it along. Any questions, please ask, any comments, just let us know.