Wednesday, March 4, 2009
Politics / Woods Forrester Declares Victory in Fight Over Freeman
Posted by Jeff Woods on Wed, Mar 4, 2009 at 3:21 PM
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Good to know Forrester says Freeman is here to stay. So how does that affect the TNDP's position on closing the wealthy tax loophole that Freeman enjoys?
$1B of tax exempt properties owned outside Tenn.
By ERIK SCHELZIG
Associated Press Writer
NASHVILLE — State records show $1 billion worth of commercial rental properties that qualify for a controversial tax break are owned by investors who live outside Tennessee.
State Revenue Department figures obtained by The Associated Press show a total of about 3,200 businesses are registered as family owned non-corporate entities, or FONCEs. They own a total of about $5.1 billion in properties that are exempt from corporate taxes.
Democratic Gov. Phil Bredesen wants to end the exemption because he considers it unfair to give family-owned rental properties special treatment not extended to similar businesses controlled by unrelated investors.
‘‘These are just huge tax avoidance schemes,’’ Bredesen said today. ‘‘And particularly at a time when middle-class working people are struggling, I think giving this pass to wealthy people is wrong.’’
Republicans in the state Legislature have vowed to fight Bredesen’s effort to end the exemption, arguing that ending the FONCEs would be akin to a tax hike for existing businesses.
‘‘I don’t think we should call this a tax break,’’ said Senate Speaker Ron Ramsey, R-Blountville. ‘‘It’s always when you’re trying to raise taxes on someone that (you say) all you’re doing is trying to close a loophole.’’
Commercial rental properties that qualify for the tax break are owned in 43 states outside of Tennessee, records show. California leads the way with 189 investors own nearly $470 million worth of tax-free properties in Tennessee.
‘‘This exemption has made Tennessee a tax haven for wealthy investors,’’ said Revenue Department spokeswoman Sophie Moery. ‘‘People are putting their high-dollar investments in Tennessee, and they’re not living here.’’
State law prohibits the department from identifying individual FONCE owners.
About 85 percent of the money invested in FONCEs, or $4.37 billion, is in commercial properties worth more larger than $1 million. The largest 149 FONCEs involve properties worth more than $10 million each.
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What is it that Mike Byrd calls the anti-Forrester freakbots who seem to have "Chip" on their Google alerts? Thing One and Thing Two? Why haven't they popped up by now?
Arthur, the mighty Pith in the Wind will reveal tomorrow the party's position on the loophole for the wealthy of which you speak.
There may not be a move on the establishment executive committee, who elected Chip, but rank and file Democrats are upset. I will have nothing to do with TNDP as long as Freeman is treasurer.
Morpheus, maybe you need to start a new party. You don't seem to fit in the existing arrangement.
