A Tumultuous Day for H1700

North Carolina’s H1700, a bill to reward park owners to sell to residents and non-profits, shifted directions today.

The bill came before the House with language that would have provided a tax credit equivalent to seven percent of the gain made by owners.  That gain would have been usable against tax liabilities for up to three years.

Two changes took place.  First, Paul Stam (R-Apex) pointed out that the bill would do nothing for owners who sell their park at little gain or even at a loss.  In many instances, park owners face that exact dilemma.  With stagnant wages in many rural counties, cash flows at parks have leveled off.  Often times, people that would have bought a home and put it in a park could, until recently, qualify for a mortgage through a subprime arrangement.

With that in mind, Stam asked for staff to consider an amendment.

Secondly, staff from Revenue considered changing the language on the incentive from a tax credit to a deduction.

The bill may be heard on Monday in the House.  It could still pass the House and make it across to the Senate this year.

~ by samsondoggie on June 26, 2008.