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.

The LLC Tax Roller Coaster Ride

So last Wednesday I stood up at the end of our Showcase program and announced that the LLC Tax was off the table in regards to the most recent budget agreement as per Rick Zechini at NCAR.

Well, things are always changing and especially on the budget front, that's for sure. On Monday I received an email from Rick stating that things are ever changing with the General Assembly. God bless Rick Zechini because his head must constantly be swimming with all the things that NCAR is trying to get done from a legislative standpoint. Seriously, it makes me tired just thinking about it.

Well here is the latest issue. When Governor Perdue took a gander at the the budget proposal she was less than excited. She's not crazy about the income tax surcharge and she wants an additional $200 million dollars. Hence basically the budget deal fell apart. I'm thinking someone figures that LLC franchise tax must be looking like it has some sort of potential in finding some of that $200 million.

So after reaching the bottom of our roller coaster ride we're climbing that hill again and NCAR is now back to fighting this franchise LLC Tax. I'l keep you posted as we continue the ride. Stay tuned.