Even after a significant reduction in their corporate tax rate, some utility companies are interpreting a little-known tax change in a way that is forcing developers to pay substantially more for contributions in aid of construction (CIACs).
Under the old tax law, some CIACs — such as sewage infrastructure or cash payments made to utilities for extending water lines — were not included in the utility’s gross income. This valuable shelter was established for CIACs in legislation enacted in 1996. The tax reform law enacted last year removed this exception, making these contributions taxable to the utility—if the utility is a privately-owned, for-profit entity.
In some states, affected utilities have begun to notify developers that the utility will pass this new tax liability to the builder. In Pennsylvania, for example, some developers have reported that their utility has begun requiring a 40 percent CIAC surcharge. A utility in South Carolina, meanwhile, is seeking a 31.8 percent CIAC surcharge.
In other states, the utilities are turning to the relevant public utility commission for guidance on how to implement these tax changes. It is likely that the surcharges seen in Pennsylvania and South Carolina will arise in other states. NAHB urges developers who build in an area served by a private, for-profit water utility to closely monitor their state public utility commission.
The intent of this tax change was not to impose a new fee on development, but rather to put for-profit utilities on parity with any other business. Unfortunately, some utilities are abusing their market power to pass this charge to the developer—despite the fact that the utility received a net tax cut from the new tax law.
NAHB is actively working with affected states and engaged in conversations with Congress to remedy the situation. If left unchecked, this unintended consequence of the new tax law will only put more strain on the housing market and push more and more families further from the dream of homeownership.
For more information, contact David Logan at 800-368-5242 x8448.
The Southwest plane involved in a deadly incident earlier this week was piloted by a woman with ties to the Kansas City metro area. Tammie Jo Shults graduated from MidAmerica Nazarene University in 1983, and is one of the first women to fly an F-15 fighter jet for the Navy. Many have commended her handling of the emergency situation that arose when an engine on her flight failed. [Read More …]
Source: All About Shawnee
Roeland Park will not continue efforts to replace the Aquatic Center’s failed dome with a similar structure for the 2018-2019 winter season, councilors unanimously [Read More …]
Source: All About Shawnee
It’s no mystery that cost of living varies drastically depending on where you live, so a new study by GOBankingRates set out to find out what minimum salary you would need to make in order to buy a median-priced home in each of the 50 states, and Washington, D.C.
States in the Midwest came out on top as most affordable, requiring the smallest salaries in order to buy a median-priced home. States with large metropolitan areas saw a bump in the average salary needed to buy with California, Washington, D.C., and Hawaii edging out all others with the highest salaries required.
Below is a map with the full results of the study:
GoBankingRates gave this advice to anyone considering a home purchase,
“Before you buy a home, it’s important to find out if you can afford the monthly mortgage payment. To do this, some financial experts recommend your housing costs — primarily your mortgage payments — shouldn’t consume more than 30 percent of your monthly income.”
As we recently reported, research from Zillow shows that historically, Americans had spent 21% of their income on owning a median-priced home. The latest data from the fourth quarter of 2017 shows that the percentage of income needed today is only 15.7%!
If you are considering buying a home, whether it’s your first time or your fifth time, let’s get together to evaluate your ability to do so in today’s market!
In order for a house to truly feel rooted to its location there has to be a special connection on some level between the building and its surroundings. Each project is different in that sense. This house from Ahmedabad, in India stays connected to its surroundings by featuring a specific array of materials, finishes and colors chosen for this project in particular. The house was designed and built by SPASM in 2018.
The architects chose that the main material be Dhrangadhra stone sourced from local quarries. This great source of local stone inspired the team to want to clad the entire body of the house as a monolith. They ultimately clad the structure in vertical slats of stone, giving it a simple and at the same time interesting look and a nice aesthetic. The stone has a beautiful bone coloring and it also ages well, two characteristics that enrich the house’s character and look.
As far as the organization of the internal spaces is concerned, the house has a cross-shaped floor plan which is very practical in the sense that it allows good natural ventilation and a well0defined distribution of the spaces plus a good amount of privacy for all the different functions. In addition to all that, this organization also improves the connection between the indoor and the outdoor areas.
Apart from the array of materials and the natural finishes and colors used throughout the house, the building also dialogues with its surroundings through a series of transitional spaces which connect the indoor to the outdoor. These spaces are situated all along the edges of the cross-shaped floor plan. Their design is a bit more playful than that of the internal areas, including features such as this hanging daybed, the oversized decorative planters, the beautiful sculpture of a monk which seems to float over the pond or the tree which grows through the perforated roof. Further more, a roof garden frames the courtyards and reinforces the connection.
Of course, we can’t ignore the huge windows which let in large amounts of natural sunlight along with views of the gardens, the water features and the patios which serve as extensions of the internal living spaces. While that’s definitely wonderful, the light is particularly bright and can be a bit harsh to the eyes which is why the designers were careful to introduce a series of dark-colored surfaces all throughout the interior which helps reduce the glare effect.
Rich wood furniture and surfaces give the rooms an elegant and welcoming feel and play with the characteristics of contemporary architecture, allowing the house and its overall design to be sensible to the site and the lifestyle of the owners. This design direction also helps to give these spaces luxurious looks.
The spaces are designed in relation to their location, the views, the local vernacular as well as the lifestyle and preferences of the users. They share in common a palette of colors based on neutrals and an array of finishes and textures meant to emphasize the natural beauty of the materials involved in the project.
The bathrooms are particularly spectacular, although their elegance and luxurious decors are not totally unexpected. We love how spacious they are and the fact that they put the spotlight on the materials and their natural texture and coloring.
Former Malaysian strongman Mahathir Mohamad says a wave of change is evident among rural ethnic Malays and a 30 percent swing from the bloc’s traditional support for the government would … Click to Continue »