One week before the North Carolina General Assembly convenes Jan. 14 for its long session, strife builds between the House and the Senate on tax reform and the budget shortfall.
So said Representatives Ted Davis Jr., R-New Hanover, and Susi Hamilton, D-New Hanover/Brunswick, speaking as a cross-party coalition at the behest of the Historic Wilmington Foundation on the pretense of gathering to discuss the state’s historic preservation tax credits that sunset at year’s end in 2014.
Good news: the Gov has done a 180, launching a year-end initiative to assemble a coalition of N.C. League of Municipalities types, mayors, real estate developers and architects to lobby the legislature about the virtues of the credits once the GA convenes.
The not unexpected bad news: the Senate has already balked at putting tax credits back in play, Davis said.
From the onset of their Jan. 6 talk at the historic Christian Science church on Chestnut Street, the historic preservation tax credits and the film incentives were inextricably tied together by the two lawmakers.
Hamilton said there would be no film incentive in North Carolina if it had not been for the historic preservation support.
While HWF executive director George Edwards gleefully shared the news that word of the meet-up had reached the ears of state cultural arts secretary Susan Klutz, who praised the initiative, Davis and Hamilton offered little real hope to their constituents that their beloved credits would be brought back from the morgue.
Instead, they dangled some juicy carrots — endeavored to explain all they had done to save the historic preservation credits along with the film credits during the short session last year, appealing to their electorate to do the heavy lifting this year by educating other lawmakers about the positive economic impacts of both credits, and hinted at the possibility of retribution by stonewalling budget negotiations.
Hamilton said they stand in a pretty good position to hold up the [budget] process while they try to right the ship.
Preaching a respectful and dignified approach, Davis noted there are 120 different opinions and 120 different attitudes in the House. Stating the obvious, he said you need 61 votes. It really takes a lot to get that majority. Plus this pearl, “You can be passionate and persuasive without being ugly.”
New Hanover County Commissioner Rob Zapple was among the 70 or so voters who attended the call and response Q-and-A asking a rhetorical question about the white elephant in the room, the root cause of the tax credit sunset: the overreach of cutting back on personal and corporate taxes.
Zapple’s comment drew an appreciative “Um, hm,” from the lady to my left who had been quietly thumbing through a hymnal.
She, a lifelong resident of the Tar Heel State, noted the plethora of historic dwellings anchoring downtowns throughout the state, making a point on which Hamilton pounced by putting forth the idea that historic preservationists explore other channels, outside those of formal government, to resurrect the grassroots effort that established the historic preservation movement decades ago, a movement on which she cut her teeth in public service.
Without rebates for preserving historic architecture, Hamilton lamented the demise of every downtown in North Carolina.
After Edwards said North Carolina was one of the first states to offer the historic preservation tax credit coupled with the federal government’s, he asked the lawmakers what the strategy would be.
It’s really how you package it, Davis indicated. Two tips he offered: avoid the use of the phrase tax credits (causes heartburn), plus avoid burdens on the state budget.
The obvious trick he shared is getting it through the General Assembly. To do that, Davis said constituents needed a thorough understanding of how the House works.
For an example, he cited the tax reform bill that bundled mortgage deductions, real estate credits and charitable contributions as puzzle pieces. All three were rearranged countless times before an accord was reached.
Oftentimes changes are swiftly turning on dimes.
Once a bill passes the House, Davis said you have to find someone in the Senate to take it for you and hope it doesn’t come back with changes.
When one resident asked who in the Senate is pro the tax credit, Davis and Hamilton ran down the list of prospects:
President Pro Tem Phil Berger (R-Guilford, Rockingham)
Tom Apodaca (R-Buncombe, Henderson, Transylvania)
Bob Rucho (R-Mecklenburg)
Harry Brown (R-Jones, Onslow)
Bill Rabon (R-Bladen, Brunswick, New Hanover, Pender)
“Michael Lee would be your senator,” Hamilton threw out. “That’s a good place to start.”
Other questions roamed the gamut from legitimate queries to posturing statements.
Rosemary Toumey, a member of Residents of Old Wilmington, asked about the change of leadership in the office of Secretary of Commerce following the resignation of former secretary Sharon Decker, an outspoken supporter of the film industry.
Hamilton said new commerce secretary John Skvarla, former department of environment and natural resources director, shared Decker’s beliefs.
Relative newcomer, Ed Ablard, who moved to Colonial Heights in December 2012, said he got the tax credit for buying his house but suggested the HWF track the downward trend of the real estate market. He said a bunch of signs popped up to sell places directly related to the loss of the credits.
Another homeowner who was midway through the process of completing her historic restoration wondered what would happen to her tax credit.
Hamilton advised consulting with the state preservation office, said she could finish the work, but will only get the credit for what was completed in 2014.
Hamilton floated the idea of a possible look back period during which homeowners could complete their projects.
Those who came looking for a solution walked away empty handed. The real takeaway is: organize yourselves, reach across the aisles, cross party lines and county lines, devise clever ways to open lawmakers’ eyes to the economic benefits of historic preservation and propose rebates for preservationists that do not burden the taxpayer. If that’s too much heavy lifting, sign the petition on Twitter: #oldbuildingsnewjobs
