BOA agenda 031218-cancelled - Laserfiche WebLink

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DRAFT June 12, 2017 3 Barry Katz: Even if we don’t sit next to each other. 1 2 Michael Harvey: Yes. So, why don’t you let me ask the county attorney his/her opinion and I will respond to 3 you in an email with that answer. As far as the legislation, which we have been discussing offline briefly, 4 there is a senate bill that passed second and third reading today that has been forwarded to the house. It is 5 the farm act of 2017 that seeks to modify one of the many provisions it does is modify the grant of power 6 section 153.A.340.B2 on what constitutes a farm. As you currently will recall from several meetings there 7 are currently 5 methodologies for proving farm status. That is enrollment present use value, that is the 8 sales tax exemption issued by the North Carolina Department of Revenue, that is a USDA farm number, 9 that is a forest management plan, and that is a schedule F on your Federal Income Tax. The proposal that 10 was reviewed by the senate eliminates the US Department of Ag. Farm number as one of the 11 methodologies to prove your farm status. It further stipulates that if you are going engage in agrotourism 12 activities, you either a) have to have a certificate issued by the North Carolina Department of Revenue 13 claiming you are exempt from sales tax or you are enrolled in the Present Use Value program one of the 14 two. Schedule F Federal Income Tax return and the Forrest Management Plan have no basis in law and if 15 this is approved in giving you ability to have an agrotourism activity. Again, assuming this is approved. 16 17 Matt Hughes: In your opinion, are those two easier or harder than the current system? 18 19 Michael Harvey: Well the current system, which we can somewhat to agree to disagree, potentially would 20 say that if you are a farm you can do agrotourism activities defined 106581.1.The current or the proposed 21 system actually requires you comply with the two provisions actually are geared towards you as a farmer 22 proving you have a certain amount of income to qualify. So present use value tracks over a several year/3 23 year period earning a specific set dollar amount and the sales tax exemption also has criteria for earnings 24 and what not. 25 26 Matt Hughes: So someone reading of that could mean that the only way you could engage in agrotourism is 27 to have functioning farm for a certain number of years. 28 29 Michael Harvey: Within a structure, correct and that it says that if you are doing agrotourism within a 30 building or structure. 31 32 Matt Hughes: You have actually get it up and running before, cart before the horse basically. Get it up and 33 running and then. 34 35 Michael Harvey: Yes. 36 37 Matt Hughes: Alright 38 39 Michael Harvey: In theory and the reason I say it that was is because the provision that is being amended 40 makes specific reference to a building or structure. And the reason I am harping on that is because there is 41 apart of me that ask the question Okay, what if I am not using a building or structure? 42 43 Matt Hughes: I believe legislator that put this forward is from Bladen County. 44 45 Michael Harvey: Well he represents Duplin County and other eastern North Carolina communities. If I am 46 not mistaken his bio for the state senate website list, I think it list him as being a farmer an agrotourism 47 business function. 48 49 197 of 200