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