Sunday, January 10, 2016

2016 Legislative Season begins this Week

Howdee everyone,
 
And so we start a new legislative year.  We need more volunteers in this Legislative Initiative.  Please read further down about volunteering to help keep this initiative alive and vibrant.
 
So far it looks like this year we will have 2, may be 3, major bills plus the normal assortment of minor bills.
The major bills are:
HB1204, Eviction Workout
HB1370, 7 Days Eviction Notice
 
Also we have not yet analyzed HB1196, related to money judgment for unpaid rent.  So it may be one of the important bills of the season.
 
This week and next several bills have initial public hearings.  The major bills have not been scheduled yet.
 
Stay tuned. The major bills are very important to us this season.
 
Important Updates:
HB1204, Eviction Workout
There will be a major amendment proposed at first hearing which we have been working diligently on with NHLA and believe we will be in agreement or very close.
 
Kelly Ayotte
Several have asked how the meeting with US Senator Kelly Ayotte went.  I was very fortunate to actually have her undivided attention for a good time and brought to her the feedback I received from those of you that previously responded.  My impression is that the meeting went exceptionally well.  I was able to make a composite statement to her of many concerns and also to explain to her about our Legislative Initiative. She must have said 4 to 5 times how impressed she was of our organization and how helpful our consolidated input was to her.  She also indicated that she would have her support staff contact us to stay in touch. I am hopeful a communication path can be established so we can begin to get a collective voice for NH heard in DC.  The statement I gave to Kelly Ayotte is included below.
 
 
Action items this week:
Look over the volunteering descriptions below and contact us to help out.
 
Let us also know if you would like to be on the advance schedule update list.  Often we have the schedule known by Friday of each week (after it is posted by the legislature).  However, it often takes through the weekend to get all the analysis done and send out the update.  For those that want a heads up on the schedule we can send a very short email with the upcoming 2 week schedule about 2 or 3 days before the regular update.  It can be helpful in planning your week since sometimes a major hearing happens on Tuesday but it is not posted until the Friday before and it is Sunday before we can finish the regular update.
 
 
Hearings this week:
01/12/2016 at 10:00 AM    LOB Room 202
HB1672, Excess Funds, Property Tax Relief
Level of Response: You Decide
Property Owner Position: You Decide
 
01/12/2016 at 01:00 PM    LOB Room 301
HB1427, Pollution Control Facility Property Tax Exemption 
Level of Response: You Decide
Property Owner Position: You Decide
 
01/12/2016 at 01:00 PM    LOB Room 307
HB1292, Abandonment of Agricultural Property
Level of Response: You Decide
Property Owner Position: You Decide
 
01/12/2016 at 01:30 PM    LOB Room 202
HB1656, Real Estate Transfer Tax Exception
Level of Response: Attend hearings, Email & Call Legislators
Property Owner Position: For
 
01/12/2016 at 02:30 PM    LOB Room 301
HB1505, Exempt Water & Sewer Facilities Owned By Educational Institutions From Property Tax
Level of Response: You Decide
Property Owner Position: You Decide
 
01/12/2016 at 03:30 PM    LOB Room 301
HB1123, Standby Generator Property Tax Exemption
Level of Response: You Decide
Property Owner Position: LimitedImpact
 
01/13/2016 at 09:45 AM    LOB Room 101
SB335, State Building Code Review Board Administraction
Level of Response: You Decide
Property Owner Position: You Decide
 
 
Hearings next week:
01/19/2016 at 10:00 AM    LOB Room 302
HB1590, Apply Rooms & Meals Tax to Short Term Rental
Level of Response: You Decide
Property Owner Position: LimitedImpact
 
01/19/2016 at 10:30 AM    LOB Room 305
HB1298, OHRV, Pollution Triple Damages
Level of Response: Email legislators Call Legislators
Property Owner Position: Against unless amended
 
01/19/2016 at 11:00 AM    LOB Room 202
HB1538, Change Enterprise Tax To Flat Rate
Level of Response: You Decide
Property Owner Position: You Decide
 
 
 
Further below is:
Volunteering
Statement to US Senator Kelly Ayotte
Bills Updated Status summary
Full details on all bills above
(Which includes property owner position, contact info, talking points, and more)
 
Love & Light,
Nick Norman
Director of Legislative Affairs
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We only list the committee reports on the most important bills affecting the real estate business.  If you want to get the committee report on one of the other bills contact me & I will show you how to get them on line.  Its not terribly hard to get but not straight ahead either.
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Volunteering:
No kidding it is a lot of work to keep this going.  There is a core team, and a team of real estate attorneys and several volunteers that I coordinate to make this Legislative Initiative all work but we need much more support.
 
The Legislative Initiative is based on many hands make light work.  Truly if more people gave only 15 – 30 minutes per week during December through May on little jobs it would make us way more effective.  And guess what, we really only need and want 15-30 minutes of your time.
 
More than 30 minutes destroys the “many hands light work” philosophy and then someone gets burned out.
 
Would you help out and make sure this successful initiative continues and lasts for many years?  We have made great strides in improving & protecting the real business in NH.
 
Join us.
 
Partial list of types of jobs that would help.
Computer work
 
Internet copy & paste and research
 
Taking on an important weekly but small task to stay on top of monitoring what is happening legislatively. (much needed by me)
 
Researching out a topic in general
 
Phone calls to legislative clerks to figure stuff out
 
Phone calls to legislators to weigh in on an issue.
 
Being part of the core team that analyzes bills and develops talking points (much heavier time commitment)
 
Helping to define a website.
 
Helping to design a website.
 
Calling & emailing landlords to rally them to join in on contacting legislators
 
Calling & emailing landlords to rally them to come to very important legislative hearings.
 
Testifying at legislative hearing.
 
Just coming to a few legislative hearings and signing in for or against a bill as needed.
Being part of the core team that develops new pro landlord legislation.
Keeping landlords in touch with local level legislation in your area.
other stuff you or I have not thought of.
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Statement to US Senator Kelly Ayotte:
NH Landlord input to US Senator Kelly Ayotte
12/22/15 Meeting in Nashua, NH
 
Polling several thousand landlords in NH here is what are the issues of present concern:
1.                   Work to stop the national movement towards making “Source of Income” a protected class.  Translate as landlord’s would have to accept Section 8.
 
Essentially this says that the government can force a private citizen to enter into a government contract with no say as to what is in the contract.
 
Accepting Section 8 forces a landlord into the HUD side of the RRP Rule (handling lead) which has much more expensive procedure and regulation and therefore increasing costs significantly.  Because of the extra complication of the HUD side of the RRP rule it is recommended that landlords no longer accept Section 8 in a property built before 1978.
A landlord writes “rising rental costs are not going to be helped by forcing LLs to take Section 8; when there is "assistance" in anything, costs only increase because the free market is  no longer part of the equation (e.g. gov't subsidies for college education have only increased tuition and this situation will only end badly sometime in the future). Once entitlements are created, they never go away.”
 
2.                   Emotional support animals
There is a national trend of people claiming to need an emotional support animal but it is not true.
They are just looking to force an unauthorized animal into an apartment where it would not normally be accepted.
There are websites where a tenant can get a “doctors authorization” for an emotional support animal by paying a small fee and there is absolutely no verification done by the website it is just a scam on landlords to make money.
This is becoming a major issue where we need some clarification on how to legally disallow pets that would normally not be allowed.
For instance just because a tenant says so they can be entitled to bring in a young pitbull that not only causes property damage but puts all other tenants in danger for which we would then be held liable.
 
3.                   Lead law unfairly puts cost of solution squarely on the landlords even when tenants have caused the lead hazard. 
4.                   Fire code & life safety code have become way to onerous with no grandfathering including too much focus on forcing implementation of expensive sprinkler systems when there is no real need.
A landlord writes
“I have been told that sprinklers systems are designed to save property - not lives!  This issue should be addressed thru insurance concerns and NOT Life Safety Codes.”
5.                   Stop national (and global) movement to universal codes.  (National Property Maintenance code).
6.                   Stop movement to no grandfathering.
7.                   In general downsize government, give back more control locally.
Have less regulation overall
                  A landlord writes “Tell her to work toward actively *reducing* government interference wherever possible, instead of always being on the defense and left in the position of having to defend liberties from new potential encroachments.”
 
All of the above puts more financial pressure on landlords which causes rents to rise and increases homelessness or takes money out of small business which decreases our economy.
 
A landlord writes “My tenants are struggling because there is no work!”
 
As well some landlords are giving up and getting out of the business due to frustrations from
1) laws favoring tenants over landlords
2) cost of maintaining standards, etc.
 
8.                   Immigration policy
The issue is not about just allowing entry into the US.  It is about funding and support.
Many of our landlords agree on this point.
One of our landlord writes
“I had a disturbing experience last month during prep inspections for a REAC ( HUD Inspection) on 50 of my units.  I went through  each unit a few weeks before the actual inspection with my manager just to make sure all was in good shape to score well on the REAC.   The revelations of my tour that the majority of the occupants in the 50 units have better A/V equipment than I do.  60 inch plus flat screens were the norm.  In one unit, we have a Bosnian gentleman.  He is about 40 years old, physically fit and he was home at 10:00 AM watching tv on his 70 inch screen.   The apartment was spotless with beautiful furniture and furnishings.   When we left, I asked the manager what the deal was with the tenant.  She said he just returned from a 2 week vacation in Europe.  He is a good tenant that does not bother anyone and does not work.   His rent is 1,500.  He pays 250 and the taxpayers pay 1,250.   He claims he is unmarried but a lady comes home there every night driving a nice car and is probably employed.  He does not claim her on his forms so whatever income she makes, does not get considered.   HUD does not care to verify.  These people are taught to game the system by the refugee center.  This man can work and appears to be decent but he is trained that this is all an entitlement that he should take advantage of.  I am so distraught by the unfairness, we are preparing with withdraw from the program although it provides attractive rents and a steady stream of tenants.
 
When my parents came to the US from Ireland, they were required to have a sponsor that guaranteed their financial independence and they could not apply for or receive government assistance.   When our leaders today say controls on immigration are un American, I disagree.  Our immigration history is based on strict controls and did not come with entitlements.  I am also ticked off by the new budget that allows government assistance for illegals.”
  
9.                   Income Tax Code changes
Reduce the tax code. Some say get rid of all or a large part of the Tax Code – 1 page tax returns
 
Include all welfare benefits as income (1099)) and require them to file a return.  It is quite unfair that a person working at $10 per hour has to file a return and pay over $2,000 in taxes while someone receiving rent subsidy, food stamps and medical assistance do not file even though they may be receiving benefit of 25,000 or more.
 
The capital gains tax is a huge impediment to long time holders selling their properties. With the federal tax at 20% and the state of NH Hampshire at 8%, In addition to a 25% re-capture on appreciation long time owners are reluctant to sell. If they were taxed less more would sell and it would be a stimulant to the economy. 
 
10.                Medical Insurance
Also, Landlords are small business people and we for the most part have to procure our own medical insurance.
From a landlord “The last two years with obomacare I have been left with a bad policy that only covers a physical and then I have to pay $6,000 out of pocket until they pay anything. I call it "getting hit by a bus insurance" because really all it does is stop me from going bankrupt if i get hit by a bus.”
 
11.                Federal Confiscation of property
From a landlord
“The feds are legally allowed to confiscate private property if they believe it was involved in a drug crime.  They don't need a criminal conviction, just a civil one, which requires only a 51% standard of evidence. 
 
So if a tenant uses or sells marijuana in my building, I face a danger that the feds will take my building, even if I had no knowledge of the crime.
 
We can believe that this happens only in major cases, but a motel owner in Mass faced a devastating fight because one guest room was the site of a drug deal. 
 
12.                EPA Water Sewer Mandates
A landlord writes
“Stop the "EPA"from anymore water/sewer upgrades as the the cost gets built into our local taxes and subsequently we need to "try" to pass the cost onto our tenants. This is especially onerous to our poorest tenants!!!! In mind is the proposed connection of the community seacoast sewers and then pipe the effluent twenty miles or so out to ocean. That will cost will be in the vicinity of a billion plus dollars!!!   Since federal $ will no doubt used the "bacon/Davis act" will be utilized and it calls for local union wages. That means the cost will be at least double or more!!  The federal deficit is out this world and it does not need more pressure to increase it and we definitely don't need to locally increase our Payment to our debt service!”
 
13.                Trans-Pacific Partnership (TPP)
Several landlords are very concerned about the TPP.
 
14.                HUD interpretation and enforcement of the Fair Housing Act
 
Many many landlords agree with what one of our landlord attorneys writes
“On a national level, I am concerned with how HUD interprets and enforces the Fair Housing Act.  Here are three disturbing trends:
 
1) The ever-expanding "right" of individuals with disabilities to have assistance animals (not limited to dogs or cats) based on "verification" of a person with knowledge (who doesn't have to be a doctor).
 
2) Expanded use of "hostile environment" as a basis for liability.  Translation:  Landlord gets sued based on comments made by one tenant to another tenant.  I am not exaggerating.  HUD has proposed a rule that imposes liability, not just for the action of a landlord's employees, but "other third parties."   There is a HUD press release that touts the charges filed against a landlord due to the landlord's alleged failure to take sufficient action when one tenant made offensive comments to another tenant.
 
3) Testers.  Not content with sending "testers" in person to entrap landlords and property managers, HUD and DOJ are expanding efforts into electronic testing (entrapment by email?).  For background, here's a link to a blog discussing an address given by Attorney General Loretta Lynch:  http://fairhousing.foxrothschild.com/2015/09/articles/fha-basics/u-s-attorney-general-loretta-lynch-speaks-at-hud-fair-housing-conference-here-is-what-you-need-to-know/?utm_source=Fox+Rothschild+LLP+-+Fair+Housing+Defense&utm_campaign=9df1eee725-RSS_EMAIL_CAMPAIGN&utm_medium=email&utm_term=0_335b6b6eaf-9df1eee725-70758861
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Bills Updated Status summary:
We only list the committee reports on the most important bills affecting the real estate business.  If you want to get the committee report on one of the other bills contact me & I will show you how to get them on line.  It’s not terribly hard to get but not straight ahead either.
HB1672     
Title: relative to excess federal matching funds, property tax relief, and general fund appropriations.
Property Owner Position: You Decide
House Status: IN COMMITTEE
Senate Status: none
 
HB1427     
Title: suspending the water and air pollution control facility property tax exemption and appropriating certain revenues for water pollution control grants to municipalities.
Property Owner Position: You Decide
House Status: IN COMMITTEE
Senate Status: none
 
HB1292     
Title: relative to the use of abandoned agricultural property.
Property Owner Position: You Decide
House Status: IN COMMITTEE
Senate Status: none
 
HB1656     
Title: relative to exceptions to the real estate transfer tax.
Property Owner Position: For
House Status: IN COMMITTEE
Senate Status: none
 
HB1505     
Title: allowing municipalities to exempt water and sewer pollution control facilities owned by educational institutions from the local property tax.
Property Owner Position: You Decide
House Status: IN COMMITTEE
Senate Status: none
 
HB1123     
Title: relative to a property tax exemption for certain stand-by generators.
Property Owner Position: LimitedImpact
House Status: IN COMMITTEE
Senate Status: none
 
SB335     
Title: transferring administration of the building code review board to the office of professional licensure and certification, and relative to appeals of decisions of the state fire marshal.
Property Owner Position: You Decide
House Status: none
Senate Status: IN COMMITTEE
 
HB1590     
Title: relative to the regulation and taxation of short-term rental businesses.
Property Owner Position: LimitedImpact
House Status: IN COMMITTEE
Senate Status: none
 
HB1298     
Title: relative to damage to private property.
Property Owner Position: Against unless amended
House Status: IN COMMITTEE
Senate Status: none
 
HB1538     
Title:
Property Owner Position: You Decide
House Status: IN COMMITTEE
Senate Status: none
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Full details on all bills above:
HB1672, Excess Funds, Property Tax Relief
01/12/2016 at 10:00 AM    LOB Room 202
Title: Title: relative to excess federal matching funds, property tax relief, and general fund appropriations.
 
Summary: Relative to excess federal matching funds, property tax relief, and general fund appropriations.
 
Property Owner Position: You Decide
 
 
Email to Committee: 
Subject: HB1672 
 
 
Talking Points:
We're basically just letting you know this bill is here incase you think it may impact you. This bill is one dealing with the use of excess federal matching funds, where the funds are to be deposited, and then used for property tax relief.  Not sure we have the knowledge to take a position on the bill.  If you learn more please let us know.
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HB1427, Pollution Control Facility Property Tax Exemption 
01/12/2016 at 01:00 PM    LOB Room 301
Title: Title: suspending the water and air pollution control facility property tax exemption and appropriating certain revenues for water pollution control grants to municipalities.
 
Summary: a bill suspending the water and air pollution control facility property tax exemption and appropriating certain revenues for water pollution control grants to municipalities.
 
Property Owner Position: You Decide
 
 
Email to Committee: 
Subject: HB1427 
 
 
Talking Points:
This bill appears to be a revenue raising measure.  If passed, certain pollution control facilities will be taxed for the next year.
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HB1292, Abandonment of Agricultural Property
01/12/2016 at 01:00 PM    LOB Room 307
Title: Title: relative to the use of abandoned agricultural property.
 
Summary: The bill simple amends the existing statute by deleting the word “disuse” to “abandonment “ to allow for special exceptions to the reestablishment of use of land for agricultural purposes.  
 
Property Owner Position: You Decide
 
 
Email to Committee: 
Subject: HB1292 
 
 
Talking Points:
We're basically just letting you know this bill is here incase you think it may impact you.  Not sure we have the knowledge to take a position on the bill.  If you learn more please let us know.
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HB1656, Real Estate Transfer Tax Exception
01/12/2016 at 01:30 PM    LOB Room 202
Title: Title: relative to exceptions to the real estate transfer tax.
 
Summary: This bill would allow people to transfer real estate, without being subjected to the real estate transfer tax, between entities with the same ownership, and assets and liabilities.  
 
Property Owner Position: For
 
 
Email to Committee: 
Subject: HB1656 
 
 
Talking Points:
This is important to us, as it would allow us to transfer assets into or out of LLC’s or trusts without the transfer taxes. Given some of the rules that the Federal Government has imposed in regard to refinancing, this bill is very helpful. Also, it is important for estate planning purposes and liability protection purposes.   Why should we be taxed just because we have decided to restructure our assets into LLC's or Trusts.
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HB1505, Exempt Water & Sewer Facilities Owned By Educational Institutions From Property Tax
01/12/2016 at 02:30 PM    LOB Room 301
Title: Title: allowing municipalities to exempt water and sewer pollution control facilities owned by educational institutions from the local property tax.
 
Summary: A bill allowing municipalities to exempt water and sewer pollution control facilities owned by educational institutions from the local property tax.
 
Property Owner Position: You Decide
 
 
Email to Committee: 
Subject: HB1505 
 
 
Talking Points:
We're basically just letting you know this bill is here incase you think it may impact you.  Not sure we have the knowledge to take a position on the bill.  If you learn more please let us know.
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HB1123, Standby Generator Property Tax Exemption
01/12/2016 at 03:30 PM    LOB Room 301
Title: Title: relative to a property tax exemption for certain stand-by generators.
 
Summary: Allows a town or city to adopt a property tax exemption for persons who have installed an emergency stand-by generator for use by an elderly person or person with a medical necessity.
 
Property Owner Position: LimitedImpact
 
 
Email to Committee: 
Subject: HB1123 
 
 
Talking Points:
The bill would allow people 65 or older and people with a medical condition to install a standby generator without being subject to additional real estate taxes for the installation. Standby generators cost $5000 to $10,000. Some towns tax them some don't 
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SB335, State Building Code Review Board Administraction
01/13/2016 at 09:45 AM    LOB Room 101
Title: Title: transferring administration of the building code review board to the office of professional licensure and certification, and relative to appeals of decisions of the state fire marshal.
 
Summary: Legislative services wrote the following as an analysis of the bill: This bill transfers the administration of the state building code review board to the office of professional licensure and certification, and makes an appropriation for this purpose. The bill also changes appeals from decisions of the state fire marshal on state fire code matters from the state building code review board to the state board of fire control. 
 
Property Owner Position: You Decide
 
 
Email to Committee: 
Subject: SB335 
 
 
Talking Points:
In addition to the above, the bill would have the governor appoint members to the board rather than the Commissioner of Safety.  We're basically just letting you know this bill is here incase you think it may impact you.  Not sure we have the knowledge to take a position on the bill.  If you learn more please let us know.
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HB1590, Apply Rooms & Meals Tax to Short Term Rental
01/19/2016 at 10:00 AM    LOB Room 302
Title: Title: relative to the regulation and taxation of short-term rental businesses.
 
Summary: Legislative service’s analysis is: This bill requires short-term rental businesses to register as businesses with the secretary of state and meet certain posting and reporting requirements. The bill also expands the meals and rooms tax to apply to short-term rental businesses.
 
Property Owner Position: LimitedImpact
 
 
Email to Committee: 
Subject: HB1590 
 
 
Talking Points:
Simply, the purpose of the bill is to tax, under the room and meals taxes, the revenue that people and the rental services generate, from renting out rooms or the entire home on a short term basis.  This bill also requires short-term rental businesses to register as businesses with the secretary of state and meet certain posting and reporting requirements. 
 
Note that the position of one of our core team is "For" the bill with the thinking that the bill would "level the playing field" for NH hotels which are loosing revenue to short term rental services.
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HB1298, OHRV, Pollution Triple Damages
01/19/2016 at 10:30 AM    LOB Room 305
Title: Title: relative to damage to private property.
 
Summary: The bill creates a cause of action for a landowner whose land is damaged by pollution. This bill also creates a cause of action for a landowner whose land is damaged by OHRV, Off-Highway Recreational Vehicle, use.  There is also provision for triple damages and attorney's fees.
 
Property Owner Position: Against unless amended
 
 
Email to Committee: 
Subject: HB1298 
 
 
Talking Points:
This bill could be a two edge sword for anyone who owns land and has any material on the property that can be deemed hazardous if it leaked.  Heating might be included in this. It also gives a landowner the right to sue another for polluting that landowner’s property.  That right probably exists at this time, but the right does not include the right to seek triple damages based upon the recklessness of conduct and attorney’s fees which the bill would allow. It also allows an owner to seek injunctive relief to stop continuing pollution and to force the cleanup of the damage.
The bill also has a section allowing for triple damages to land from off road vehicles.
The bill can impose greater liability upon us.  Triple damages are always dangerous and ripe for abuse.  What if a tenant dumps oil on your property and it seeps onto a neighbor.  Will the neighbor be able to sue you for triple damages?
However, the bill also gives us more protection from polluters.
We would support the bill if amended from triple damages to actual damages.
We also would like to see something defined that a landlord would not be held liable for a tenant's action if the landlord was unaware of the tenant's action.
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HB1538, Change Enterprise Tax To Flat Rate
01/19/2016 at 11:00 AM    LOB Room 202
Title: Title: relative to revising the business enterprise tax as a business flat tax, reducing the rate of the interest and dividends tax, repealing certain taxes, and establishing a commission to recommend statutory changes for the implementation of this new tax structure.
 
Summary: Legislative service’s analysis is: This bill revises the business enterprise tax as a business flat tax at a rate of 2 percent and repeals the business profits tax and Medicaid enhancement tax. The bill reduces the rate of the interest and dividends tax to 2 percent. The bill also establishes a commission to recommend statutory changes for the implementation of this new tax structure.
 
Property Owner Position: You Decide
 
 
Email to Committee: 
Subject: HB1538 
 
 
Talking Points:
Since many of us use LLC’s and are subject to the Business Enterprise Tax or the Business Profits Tax, this bill will impact us. Unfortunately, we do not have the tax expertise to be able to determine if the bill will help or hurt us. We need someone with the appropriate knowledge to help us with this bill. If you learn more or can help out please let us know.
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