Scott Riehl 2017-01-20 03:44:47
ELFA MEMBERS are forming a workgroup that will tackle a personal property tax dilemma facing Georgia’s family-owned farms. The issue centers on inconsistent application—by both local assessors and state auditors—of the personal property tax exemption for equipment with a lease purchase agreement under §48-5-41.1(c). This provision provides a tax exemption for equipment if it is under a lease-purchase agreement and used in production by a family-owned qualified farm.
Association members alerted ELFA that local assessors are frequently not conforming to House Bill 374 passed in 2015. That law meant to define and clarify a “lease purchase agreement” but left it undefined. These local assessors at times make their own interpretation denying an exemption or state auditors overturn the exemption ruling against the norm, which is a nominal payment upon the end of the lease in order to transfer ownership. Until a ruling is obtained or the law is changed or clarified and “lease-purchase agreement” is clearly defined, farmers will continue to be potentially penalized for their choice in financing.
ELFA has briefed and obtained the support of Georgia Senate and House agriculture and fiscal leaders in response to their requests for information about this issue. Th ose wishing to participate in the workgroup should send complete contact information to Scott Riehl, ELFA Vice President of State Government Relations, at sriehl@elfaonline.org.
The ELFA-supplied fix in next year’s legislation will relieve the industry of this extra sales tax amounting to an estimated $110 million yearly.
Louisiana Commission Chairman Hears
ELFA Concerns ELFA State Government Relations Vice President Scott Riehl has worked with Rep. Julie Stokes, Chairman of the Louisiana Sales Tax Streamlining and Modernization Commission, to ensure that legislation draft ed by the Commission will resolve tax problems created by the legislature earlier this year. Scott Riehl and ELFA member Chris Bucher of Whitney Bank met with Rep. Stokes in her legislative district at her invitation to seek resolution to the double sales tax on leased equipment.
Not even factoring in the tens of millions of dollars in transactions lost to the current tax imbalance, enactment of the ELFA-supplied fix in next year’s legislation to restore the sale-for-resale exemption will relieve the equipment leasing industry of this extra sales tax amounting to an estimated $110 million yearly.
New York Data Security Proposal Affects ELFA Members
On Nov. 14, ELFA filed opposition comments to the New York Department of Financial Services (NYDFS) Proposed Cybersecurity Requirements for Financial Services Companies. Under the proposed regulations the NYDFS could impose civil penalties, at a minimum, against “Covered Entities” who violate the regulations and are defined as “any Person operating under or required to operate under a license, registration, charter, certificate, permit, accreditation or similar authorization under the banking law, the insurance law or the financial services law.” The proposal exempts some smaller entities. ELFA has joined with the New York Business Council and other allies in an eff ort to address this proposal. ELFA’s comments can be view State Advocacy webpage at www.elfaonline.org/advocacy/state-issues.
For more information, please contact Vice President of State Government Relations Scott Riehl at sriehl@elfaonline.org.
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