property taxes

House votes for builder tax break

bniolet — Thu, 25 Jun 2009 14:39:21 -0400

The House gave preliminary approval to a bill that would give home builders a temporary reprieve from property taxes on unsold homes.

The bill allows builders to defer for up to three years the portion of property tax generated by building a new home. The builder would still have to continue to pay tax on the value of the land. The increased property taxes generated by improving the land with a home would be due when the home is sold.

The bill only applies to homes that have never been occupied. All taxes would be due in 2013.

The bill is meant to provide "temporary relief for a segment of North Carolina's economy that we all know has been hit hard," said Rep. Margaret Highsmith Dickson, a Fayetteville Democrat and co-sponsor of the bill.

Rep. Leo Daughtry, a Johnston County Republican, said his county officials told him the bill would delay payment of $1 million in taxes.

"My county commissioners asked me to give y'all a message and that is it's good to be generous and help your fellow man," Daughtry said. "They want you to do it with your own money."

The bill passed a key House vote 106-8. It needs another vote in the chamber before it can go to the Senate.

Update: The House took its final vote on the bill, which will now head to the Senate.

Ross wants to expand transit options

ryanteaguebeckwith — Tue, 27 Jan 2009 12:00:26 -0500

State Rep. Deborah Ross wants to let other cities follow Charlotte's model.

The Raleigh Democrat plans to reintroduce a bill that would allow municipalities that come up with regional mass-transit plans levy an additional sales tax to fund it.

A half-cent local sales tax in Mecklenburg County levied since 2007 has paid for city buses and a new light-rail line in Charlotte.

Because they are viewed as to a certain extent voluntary, sales taxes are often more popular than other taxes with voters.

Sen. Richard Stevens, a Cary Republican, is expected to introduce a companion bill. Both bills will also include requirements that municipalities show they have come up with a workable regional plan before levying the tax.

Ross noted that municipalities already have six options for paying for transit systems, including vehicle registration fees, rental car taxes and property taxes.

"This would just add one more option," she said.

On other issues, she said she would work to maintain the state's funding of the N.C. Housing Trust Fund, expand child care options for community college students, reconsider rules on children testifying in court and keep the State Health Plan affordable.

Claims Dept: Alliance's 'Stand Up' ad

ryanteaguebeckwith — Wed, 15 Oct 2008 17:47:20 -0400

The Alliance for North Carolina has a new ad criticizing Republican gubernatorial candidate Pat McCrory over his ties to President Bush.

What it says: The ad shows footage of McCrory speaking at the 2004 Republican national convention, portraits of Bush and McCrory and a fake postcard saying "Welcome to Charlotte, The city of high taxes." It begins with footage of McCrory at the 2004 Republican national convention, saying "Cities large and small will benefit by having President Bush leading us for another four years." Narrator: "Pat McCrory supported George Bush's policies that favor the wealthy and helped create this economic crisis. Charlotte now has the highest tax burden of any North Carolina city and as mayor McCrory took a pay raise for himself but opposed raising the minimum wage. Pat McCrory, stop siding with George Bush, support tax breaks for middle-class families."

The background: The ad makes several claims about McCrory's ties to Bush, his record in office and Charlotte taxes.

MCCRORY AND BUSH: In 2000, McCrory was elected president of Republican Mayors and Local Officials, a Washington-based advocacy group.

In May of 2003, the group issued a press release quoting McCrory praising a proposal to cut dividends and capital gains taxes being pushed by President Bush.

"What the President's tax cuts will do is enable entrepreneurs and local people to make the best decisions about creating jobs and making needed investments," McCrory said in the release.

The bill was signed into law later that month. A study by the Congressional Budget Office found that it reduced tax rates for people in every income level, but cut rates the most for the highest earners.

At the 2004 Republican national convention in New York City, McCrory spoke on behalf of Republican Mayors and Local Officials, praising the tax cuts, programs to increase homeownership, brownfields legislation and the war on terrorism.

"President Bush has helped cities by bringing jobs back through tax cuts to help small businesses, the economic engines of all metropolitan regions," he said.

CHARLOTTE TAXES: The ad cites a study released in January by the conservative John Locke Foundation's Center for Local Innovation ranked Charlotte as having the highest combined county and municipal tax burden of North Carolina cities and towns with more than 25,000 residents.

The study looked at combined city and county rates, however.

Charlotte's property tax rate is in the middle of other major cities in the state. Greensboro, Durham and Winston-Salem have a higher rate, while Asheville, Raleigh and Wilmington have lower rates.

Over the past 10 years, Charlotte raised the property tax once. McCrory vetoed the increase, but the Democratic majority on the City Council overrode it.

The city's sales tax rate is highest in North Carolina, however.

Of the 100 counties in North Carolina, 91 have a 6.75 percent sales tax and eight have a 7 percent sales tax, according to the N.C. Department of Revenue. Only Mecklenburg County, home to Charlotte, has a 7.25 percent rate.

The rate is higher because of an additional half-cent sales tax approved by the legislature and local voters in the late 1990s to pay for buses and a newly opened light rail line. McCrory lobbied for the sales tax and the defeat of a referendum to repeal it.

PAY RAISES: As mayor of Charlotte since 1996, McCrory's salary and expenses have risen from $24,800 to $39,900. That's about a 60-percent increase.

Adjusted for inflation, however, it's more like a 20 percent raise.

The Charlotte mayor does not typically vote on the city budget, which includes pay raises, but he can veto it. If he does, it takes seven out of 11 votes from the City Council to override his veto.

In 1998, McCrory broke a tie, voting with the City Council's Republicans to overturn a pay raise for city leaders that would have boosted his own salary by several thousand dollars.

This year, the City Council narrowly approved a pay raise for members and the mayor in a vote that McCrory did not join. McCrory did not make any public statements on the raise and did not veto the budget, but his campaign staff said later that he opposed it.

MINIMUM WAGE: McCrory's campaign says he does not completely oppose the minimum wage, but there is evidence that he's not a big fan, either.

According to campaign manager Richard Hudson, McCrory supports raising the state's minimum wage, but only if it is coupled with tax breaks for small businesses or tied to increases in the cost of living.

That is supported by a candidate questionnaire McCrory filled out for the National Federation of Independent Business, a small-business group.

On the other hand, McCrory told the Asheville Citizen-Times shortly before the Republican primary that he would "probably oppose" a minimum wage increase because it could cause jobs to be cut.

And he made several provocative statements during a fight over a proposed $9-an-hour minimum salary for city of Charlotte workers in 2001, comparing it to "socialism" in East Germany and stating his opposition to the concept of minimum wages.

"I don't believe politicians should be setting wages in either the private and public sector," he said.

His campaign Web site makes no mention of the minimum wage.

Is it accurate? The ad's claims go beyond the facts that support it. McCrory supported the Bush tax cuts, but it's tenuous to connect them to the foreclosure crisis and problems on Wall Street. The claim that Charlotte has the highest taxes is inaccurate, and the ad overstates McCrory's position on pay raises and the minimum wage.

— Ryan Teague Beckwith

Charlotte in middle on tax rates, part II

ryanteaguebeckwith — Wed, 15 Oct 2008 13:57:33 -0400

Charlotte is in the middle of adjusted tax rates among major North Carolina cities.

Because counties adjust property values in different years, the property tax rates for cities and towns are not directly comparable on their own.

But the N.C. Department of Revenue calculates an adjusted (or effective) rate based on how long ago the counties reassessed local properties.

According to a list of adjusted tax rates, Greensboro, Durham and Winston-Salem have higher rates than Charlotte, while Asheville, Raleigh and Wilmington were lower.

Below, the 2006-2007 rates per $100 of valuation, adjusted to account for years since most recent revaluation.

Greensboro: .5911
Durham: .5411
Winston-Salem: .4699
Charlotte: .4300
Asheville: .4192
Raleigh: .3674
Wilmington: .3097

As noted previously, Charlotte and Mecklenburg County are more closely integrated than other North Carolina cities and counties.

Perdue: McCrory should remain mayor

bkrueger — Tue, 30 Sep 2008 10:56:15 -0400

CHARLOTTE - Democrat Beverly Perdue came to Republican Pat McCrory's backyard today and slammed the Charlotte mayor for "whining about crime" while vetoing a move to put more cops on the street.

Perdue also criticized McCrory for supporting school vouchers, which she said would take $1 billion out of public education, and opposing children's health insurance, reports Jim Morrill of The Charlotte Observer.

"The mayor of Charlotte may be a good guy," she told about 40 people. "He's a good mayor of Charlotte. And I'm asking you to let him remain as mayor."

Perdue referred to McCrory's 2006 veto of a city budget that included money for 70 new police officers. It also included a 9 perent property tax increase, the first hike in 10 years and the reason for McCrory's veto. The Democratic-controlled city council overrode the veto.

Since McCrory was first elected in 1995, the city has added 400 police officers. He's also pushed for more state money for prosecutors.

Perdue has run ads attacking McCrory on vouchers. She says giving state money to families who might choose private schools would drain money from public schools. McCrory has said he supports "selective use" of vouchers for special needs students.

Although she said vouchers would take $1 billion out of public education, her ads say they would cost the state $900 million. That assumes that every student home schooled or enrolled in private school in North Carolina would get a voucher.

The McCrory campaign wasn't immediately available for comment.

Orr, Smith target McCrory at debate

ryanteaguebeckwith — Wed, 16 Apr 2008 08:03:18 -0400

The Republican gubernatorial candidates targeted Pat McCrory Tuesday night.

At an hourlong debate at WRAL-TV in Raleigh, state Sen. Fred Smith and former Supreme Court Justice Bob Orr took aim at the Charlotte mayor, who is ahead in most polls.

"It's amazing to hear Pat talk about he wants to cut government when he's the big mayor of the biggest city in North Carolina and has the highest tax burden," Smith said.

McCrory said that he hasn't supported a property tax increase since becoming mayor in 1995.

Orr argued that Charlotte keeps property taxes lower because the city involuntarily annexes sections of Mecklenburg County every few years.

McCrory said he learned how to take criticism as mayor.

"It is a little disconcerting that someone is more interested in attacking my record rather than stating their own. And that's the kind of politics we don't need," he said.

Salisbury attorney Bill Graham argued at the debate that the state should reduce its gas tax. (AP)

Claims Dept: Moore on pension fund

ryanteaguebeckwith — Wed, 09 Apr 2008 10:05:21 -0400

Democratic gubernatorial candidate Richard Moore's latest ad boasts about his work on the state's pension fund and on the minimum wage, Ben Niolet reports.

What the ad says: "Eight hundred thousand workers and seniors know the truth about Democrat Richard Moore. He built the nation's second strongest retirement fund. A bulldog pushing for corporate accountability. Moore's protected consumers and increased North Carolina retirement funds by billions. And he'll do the same as governor. Cut property taxes for seniors. Tuition-free community college, and raise the minimum wage again. Richard Moore. A Democrat who will always stand up for you."

The background: As state treasurer, Moore oversees the state's pension fund, which holds retirement money for about 820,000 employees of state and local government. Under Moore, the pension fund was ranked second by Standard & Poor's among public pension funds on its ability to pay its obligations.

A September 2003 story in The News & Observer ran under a headline that described Moore as a 'bulldog.' The story focused on how Moore, then in his first term as treasurer, had gained national notoriety for pushing for investment firms to disclose conflicts of interest. He has also called for better corporate governance.

Moore's office estimates that money management decisions made under his tenure have generated $6.9 billion for the pension fund.

Moore has plans to cut property taxes for seniors and offer free community college tuition for high school graduates who go directly into community college. He supports raising the minimum wage. The ad's text could be interpreted to mean that Moore had previously raised the minimum wage. In 2006, he pushed business leaders and others to support a $1 an hour increase. But ultimately, it was the legislature that approved an increase.

Is the ad accurate? Yes, although the ad could leave viewers with the impression that Moore personally raised the minimum wage. He supported the increase, but it was the legislature that raised the minimum wage.

Moore presents economic plan

ryanteaguebeckwith — Tue, 04 Mar 2008 10:46:00 -0500

Richard Moore proposed an economic stimulus package.

At a press conference this morning, the Democratic gubernatorial candidate called for property tax relief for senior citizens, reducing the waiting list for day care subsidies, cutting small business taxes and tying the minimum wage to inflation.

He noted that pension plans and Social Security already provide cost of living adjustments based on inflation. He estimated that the minimum wage would go up a dollar during the next governor's four years in office.

"All you've got to do is go to projected four-dollar a gallon gas to understand why," he said.

He also pledged that the state would pay for two years of community college for all high school graduates, though not for students who drop out and get a general equivalency diploma, or G.E.D.

"I shudder to think that any high school student in North Carolina does not take the next step to continue their education," he said.

He said that the proposal would cost around $50 million and would be paid for using interest earnings from Golden LEAF Foundation.

Moore on seniors' taxes

shwineka — Fri, 22 Feb 2008 11:27:56 -0500

Richard Moore wants more seniors to qualify for property tax homestead exclusion.

Moore said he wants to double the income limit from $25,000 to $50,000 for those wishing to qualify for the property tax exclusion. According to his campaign, this would cut about 100,000 seniors citizens' tax bill in half.

He has also proposed freezing property values for residents over 65 who have lived in the same house for more than 20 years and those that have an income less than $50,000 a year.

The homestead exclusion currently reduces the value of qualifying residents' homes by $25,000 or 50 percent, depending which is greater. Moore says raising the income limit would open the option to 200,000 additional senior households in the state.

The income limit rose to $25,000 from $20,500 at the beginning of 2008.