Tag Archives: tax

2010 Brings Strong Tourism to the Outer Banks

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Hurricane Earl may have chased some tourists away from the Outer Banks last week, but as a whole, this has been a very strong year for OBX tourism. 

The July 2010 Occupancy Tax and Food & Beverage Tax were record setting on the Outer Banks.  Occupancy tax collection from vacation rentals rose 15% in July.

Rental receipts during July 2008 and 2009 dropped from the earlier all time high of $97 million set  in July 2007, but July 2010 occupancy revenues topped out with gross rental receipts just exceeding $101 million, surpassing the previous July 2007 high.   

For the January through July period, that revenue is up 5%.  On a month to month basis, January receipts were up, February was up, March was down, April was down, May was down, and June and July were up.  Though August figures are not yet available, indications are that they increased as well.

Outer Banks Occupancy Revenues Hit All Time High in July

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The July 2010 Occupancy Tax and Food & Beverage Tax were record setting on the Outer Banks. 

Rental receipts during July 2008 and 2009 dropped from the earlier all time high of $97 million set in July 2007 , but July 2010 occupancy revenues topped out with gross rental receipts just exceeding $101 million, surpassing the previous July 2007 high.

Homebuyer Tax Credit Closing Deadline Extended

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 Late last night, the United States Senate passed an extension of the Homebuyer Tax Credit closing deadline.

Known as the “Homebuyers Assistance and Improvement Act of 2010,” the bill was passed by unanimous consent. The extension applies only to transactions that have ratified contracts in place as of April 30, 2010 that have not yet closed.

This legislation is designed to create a seamless extension, and the new closing deadline for eligible home sale transactions is now September 30, 2010. There will not be any gap between June 30 and the date the President signs the bill into law.

Corolla Property Tax Values Expected to Decrease

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The updated tax values of property in Corolla will not take place unitl 2013 for Currituck County, but the anticipation is that values will dramatically decrease.

County officials have been at work planning for the change in valuation.  Local experts believe that a tax burden could be passed to property owners on the mainland. There is no question that the downturn of the market since 2005 has caused property to be sold under the appraised value. Some local realtors report that some properties are being sold as much as 70 percent of its appraised value. As of right now, the Outer Banks pays about 58 percent of the property taxes in the county.

Could the tax burden shift soon?  If property valuations drop as they have been predicted to, county officials will be faced with a difficult decision about raising taxes to makeup for the shortfall.

New Home Sales Surge – Biggest Jump in 47 Years!

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According to CNN.com, new home sales jumped in March at the fastest single-month rate in 47 years!

It seems buyers are busy making purchases ahead of the tax credit that’s set to expire.

New-home sales rose 26.9% to a seasonally adjusted annual rate of 411,000 last month, compared to an upwardly revised annual rate of 324,000 in February, the Census Bureau said. The increase ended a four-month streak of declines.

The March sales were the strongest since last July, and the percentage gain was the biggest on a month-over-month basis since a 31% gain in March 1963.  The increase was seen in every region of the U.S.; with the South leading the way with a 43.5% increase.    

Keep an eye out for the Coldwell Banker Buyer Bonus set to start at the beginning of May.

How will the extended and expanded homebuyer tax credit impact housing?

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How will the extended and expanded homebuyer tax credit impact housing?

  • We applaud Congress and President Obama for passing the Worker, Homeownership, and Business Assistance Act of 2009.  The ensuing tax credits for first-time homebuyers, which is an extension of the popular plan that was set to expire on November 30, and move-up buyers is the true definition of stimulus.  According to NAR, approximately $63,000 is put back into the local economy for every home sold.  Economist Mark Zandi of economy.com believes that figure to be about $56,000.
  • The first-time tax credit was working, but what housing and our national economy needed was incentive for the move-up buyer.
  • The first-time homebuyer’s tax credit remains at $8,000 for most buyers who have not owned a home the previous three years who have a signed sales contract prior to May 1, 2010 and close before July 1, 2010.  The new plan also allows for a higher cap of $125,000 income for singles and $225,000 for married couples. 
  • Current homeowners who have lived in their homes for five consecutive years over the previous eight years, can take advantage of a tax credit of up to $6500 for the purchase of their next primary residence of up to $800,000.  Again, the contract must be signed before May 1,2010 and the deal closed before July 1, 2010.

Home Buyer Tax Credit Extended

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The House of Representatives voted last Thursday to extend the first time homebuyer tax credit.  The bill was approved with an overwhelming 403-12 margin in Congress.  On Friday it was passed to the White House and enacted as law by president Obama.

 

Jim Gillespie, CEO of Coldwell Banker LLC, played a key role in the extension of this bill.  Gillespie and many other leaders in the real estate industry have been activists for this cause.  They have fought for almost a year now to have the bill extended, and in a email he sent out to Coldwell Banker associates he states,

“This is an historic moment for our industry as well as the culmination of more than a year’s worth of hard work and meetings with elected officials and policy makers. I want to personally thank all of you who participated in Coldwell Banker’s Legislative Week, which was the springboard for my meetings on Capitol Hill, as well as the numerous other legislative calls for action — I am both proud and appreciative of how so many of you made office visits, phone calls and e-mailed your elected officials. Combined with Realogy’s instrumental efforts on Capitol Hill, I know that our grass roots outreach to Congress and the Administration truly helped make a difference on this issue.”

 

The Senate was also commended by the National Association of Realtors for the extension.  NAR estimates that the current tax credit aided about $22 billion in home sales.

 

Bill Details:

·         Extends the present $8,000 tax credit for first-time home buyers through April 30, 2010.  

·         Current homeowners are eligible for a $6,500 tax credit through April 30, provided they have lived in the home they are selling, or have sold, as principal residence for five consecutive years in the past eight years.

·         If potential home buyers have a binding contract on or before that date, they will have until July 1 to close the transaction.  

·         Income limits for eligible home buyers are expanded to $125,000 for single buyers and $225,000 for couples.

·         The purchase price of the home cannot exceed $800,000. 

·         To help guard against fraud, buyers are required to attach documentation of purchase to their tax return.

Still Time to Take Advantage of Homebuyer Tax Credit – Coldwell Banker Agent Makes the Case on the Today Show

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Congratulations to Coldwell Banker sales associate Jessica Riffle with Coldwell Banker Sea Coast in Wilmington, North Carolina, who was selected to serve as a guest blogger for the Today Show!

Jessica saw Tuesday’s Today Show segment where real estate contributor Barbara Corcoran suggested that it would take a “miracle” for new homebuyers to take advantage of the $8,000 first-time homebuyer tax credit as there was essentially no time left. Jessica saw this and wanted the world to know that’s simply not true.

Jessica expressed her opinions to the Today Show and the producers invited her to be a guest video blogger. Jessica then submitted her video response and posted on Coldwell Banker On Location You Tube channel, outlining why there is indeed still enough time.   Click here to see the video.

To see the same video on the Today Show page, click here.

A discussion on Jessica’s Today Show blog has also appeared on our Coldwell Banker Facebook page, as several people are weighing in on the subject.

Jessica deserves kudos for taking advantage of Coldwell Banker On Location to make her points known.  To date the channel has had nearly 450,000 viewed videos and Coldwell Banker professionals have posted more than 5000 videos. 

Great job, Jessica!

 

 

Real Estate Experts are Lobbying for an Extension/Expansion to the Home Buyer Tax Credit

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As Many as 40% of all home buyers this year will be eligible for the $8000 tax credit.

The stimulus plan is scheduled to end in November, and it is projected to cost the federal government $15 billion.  This is two times the amount that was estimated when the bill was passed in February.

Many people are beginning to wonder if the housing market will continue to stablize without the tax credit.  Experts estimate that the tax credit helped aid several hundred thousand home sales.

The real estate industry, including the powerful 1.1 million-member National Association of Realtors, wants Congress to extend the credit at least through next summer. The group hopes to expand the program to $15,000 and to allow all buyers, not just those who have been out of the market for at least three years, to qualify.

The price tag on that plan: $50 billion to $100 billion.