Whether it was talk about the tax revaluation facing Buncombe County or the new tax rates coming from the Affordable Care Act, presentations at the Sept. 7 Council of Independent Business Owners breakfast focused on how these changes could impact the wallets of local business owners.
Here are the highlights:
CIBO elects new officers and board members:
At the start of the meeting, CIBO elected its new officers and board members to their posts. The new officers and board members are as follows:
President: Rod Hudgins
Vice President: Chris Eller
Secretary of Treasurer: Scott Hughes
Class one membership: Kearney McNeil
Class two membership: Jan Davis
Class three membership: Josh Holmes
CIBO hears presentation on tax revaluation
The last time the county appraised properties for tax value was seven years ago, says Buncombe County Tax Collector Gary Roberts. Once done every four years, the tax revaluation was delayed in 2009 after Roberts asked the Buncombe County Commissioners delay it until 2014, fearing it would hurt taxpayers. But recently, Roberts made a request to the County Commissioners to accelerate the revaluation, citing changes in the real estate market.
Here are some other highlights from his presentation at the CIBO issues breakfast:
• County values property are largely determined by neighborhood.
• Overall, he says, “There’s a lot of inequity. When I say inequity, some of your properties are valued at 70 percent to market — meaning the assessment is 70 percent, the market value’s higher. Some of your properties are lower — we’re overassessing.”
• Albert Sneed asked Roberts about “raw” land values. Roberts said land value in areas like south Asheville near Airport Road will probably increase in value, but areas near Tunnel Road that aren’t as popular will probably decrease.
• He estimates about 14,000 appeals will come in after sending out revaluations in January. However, he says, “Appeals to us is not a negative thing. It’s, ‘Did we do the job right,’ and then ‘Do we know everything that you now about that property?’”
CIBO hears presentation on implications of the Affordable Care Act
Newly elected CIBO secretary of treasurer, Scott Hughes spoke about the financial ramifications of the Affordable Care Act. The accountant with Johnson, Price & Sprinkle told CIBO members before he began his presentation, “Don’t hear this as an indictment of either party. The fact of the matter is I’m here to tell you the hard cruel facts that if you make a good living, most likely going to pay more in tax.”
Here are some highlights from his presentation at the CIBO issues breakfast:
• Hughes began by telling the crowd, “If you think that this act is not going to impact you, if you make more than $200,000 in your business this is a big tax increase for you.”
• Beginning Jan. 1, 2013, taxpayers who make more than $200,000 or $250,000 with their partner will face a 0.9 percent Medicare tax
• There will also be a 3.8 percent tax on investment income for those same high-earning taxpayers. Investment income items include: dividends, interest, annuities, royalties, net rents and capital gain.
• He said it is estimated that these taxes will generate an estimated $35-40 billion annually from people who will not rely on health care reform for health insurance.