Agenda - 08-30-2007-4 - Laserfiche WebLink

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The North Caroluza League of Municipalities Page 8 of 16 A modified version of the low-income housing builders' property tax exemption unexpectedly surfaced in the waning hours of the session. After a floor ainendrnent in the Senate, SB 1309 - Fairrfess irz PT valrzes/Liezz ozz Mobile Honze creates a special class of property under the state constitution which is to be appraised as provided. If the real property is subject to restriction on the income eligibility of tenants or on rents that maybe charged under a state or federal program that provides tax incentives, grants, interest subsidies or loans, the effect of rent restrictions and income restrictions on the true value of the property must be taken into account for purposes of valuation. In addition, the value of the tax incentives, grants, interest subsidies, or loans provided to the property must be ignored for purposes of valuation. The bill also provides for reappraisals every four years rather than every eight. The bill passed the Senate and was in House Finance when the session ended. Sales Tax-Please see 2007 Bzfdget Overview above for discussion of the "sales tax swap" and municipal hold harmless provisions. In other legislation affecting sales tax, HB 257- Streamlined Sales Tax Cltar:ges (SL 2007-244) made two definitional changes in state law to comply with the latest amendments to the national Streamlined Sales Tax Agreement. One change is to add a definition of "bundled transaction" and specify how these transactions are to be taxed. The other change is to modify the definition of "sales price" to clarify how third-party discounts, such as a manufacturer's coupon, affect the sales price of an item. The act also makes several other conforming and technical changes in the sales tax laws, as recommended by the Department of Revenue. None of the changes should materially impact local sales tax revenues. General Government Apartment Solid Waste Collection-Companion bills to requires cities and counties to provide a "reasonably equitable" level of service to all single-family and multi-family dwellings did not advance from committee and do not appear to be eligible in the short session. Under HB I229 - Cozzzzty/City Solid Waste Collection and SB II33 - Coruzty/City Solid Waste Collection, if the local government funded the service through the property tax, it could not charge multi-family dwellings any additional fees for services not also charged to single-family dwellings. The League opposed these proposals. Appointment Reporting-Revisions to the requirements for reporting the gender of individuals appointed to boards and commissions clarify which local appointments are subject to the reporting requirement. HB 824 - Lzzprove Gender Equity Reporting Statute (SL 2007-167) now specifically lists those local government boards for which a report is necessary. Forms for reporting are available online and are due to the Department of the Secretary of State on or before September 1 each year. Our thanks to Secretary of State Elaine Marshall for her assistance on this matter. Bidding Laws-HB 73 - Iuzprove State Corzstructiorz Process includes a provision that raises the formal bidding threshold on construction or repair projects to $500,000 (previously $300,000). SB 320 - Statewide Certification: of HUBS (SL 2007-392) directs the Secretary of Administration to develop and administer a statewide uniform program for the certification of a historically underutilized business for use by state agencies and local govermnents and create and maintain a database of the businesses certified. It requires state agencies and local governments to use only the historically underutilized businesses listed in the database for minority business purposes in the bidding process. SB 492 -Political Subdivisiozzs/Cozztracts Exeu:ptiorzs (SL 2007-94) exempts from the bidding laws purchases of supplies or equipment from contracts established by the federal government, if the contractor is willing to extend the same or more favorable prices, terms and conditions as under the federal contract. Building Inspections/Permits-Industrial equipment was exempted from the building code in SB 490 - Industrial Mac/finery-Building Code. If an electrical inspector has concerns about the safety of a piece of industrial machinery, the inspector may refer the matter to the OSHA Division of the NC Department of Labor but may not withhold the certificate of occupancy or mandate third-party testing of the machinery. A clarification of the certification of inspectors appears in HB 700 -Standards for Code Er:forceu:eut Officials (SL 2007-120). The act provides that the qualifications board is to issue a standard certificate for each of the following types of building code enforcement officials: building inspector, electrical inspector, mechanical inspector, plumbing inspector, fire inspector. One individual may hold more than one certification but may only practice code enforcement within the inspection area and level described on that individual's certificates. Local governments are authorized to reduce or rebate building permit fees as a means of encouraging sustainable building techniques under SB 581- Brrilrlinrg Permit Reductions/Rebates (SL 2007-381). Construction Plan Review-HB 735 - Coz:strrzctioff Plaz: Review (SL 2007-303) increases the threshold size of public buildings whose plans must be approved by the Commissioner of Insurance. It provides that plans for buildings comprising 20,000 square feet or more for the use of any county, city, or school district must be approved by the Commissioner as to fire safety (was 10,000 square feet). The act http://www.nclm.org/LegaUBulletii~/2007/08-24-07.htm 8/28/2007