The LLC Fight Goes On

So the saga continues in regards to the LLC tax. Friday we got an update from Rick Zechini, Director of Government Affairs for NCAR. I thought I would just copy and past what he wrote to us, so for the update, please feel free to read below.

"Well, there is a tentative budget agreement (just like the last three weeks). And it’s very similar to the tentative agreement last week. Here is part of our description of the deal from our weekly update that goes out later today:

The $19 billion budget will increase taxes by approximately $1 billion, and includes increases a penny increase in the sales tax, increases in so-called “sin taxes”, as well as a 2 or 3% surcharge on individual and corporate income taxes based on income level. Legislative leaders have also agreed to come back for a special session and look at restructuring the tax code.

Governor Beverly Perdue is again expressing concerns regarding the surcharge and her desire for additional taxes. And some House Democrats are bothered by the sin taxes (taxes on tobacco and alcohol).

So, in summation we have another tentative deal that does not include a new LLC tax. That’s the good news. The bad news is that there appears to be some sort of agreement to have a special legislative session on restructuring the tax code. If that happens, a franchise tax on LLCs will most certainly be on the table."

NCAR will continue to update us on what is going on and as I get the information, I will pass it on to you. This is just another example of how your membership to NCAR/NCRCA is benefiting you.