2013 Legislative Session: Agriculture & Rural Community Impacts NCACC Ag Steering Committee Jake Parker, Legislative Counsel, NCFB Wednesday, October 9, 2013

5 Broad Topics Tax Reform RECLAIM NC (revised NC’s E-Verify law) NC Farm Act (omnibus ag bill) NC Agriculture & Forestry Act (nuisance suits) Other Legislative Accomplishments

Tax Reform Established new flat rate for income taxes and reduced income tax rates for all filers – 5.8% in 2014 – 5.75% in 2015 Repealed NC estate tax retroactive to 1/1/13 Preserved Present Use Value System Revised agricultural sales tax exemptions – Imposed new $10k annual gross income threshold

RECLAIM NC NC’s E-Verify mandate imposed in 2011 – Employers with 25 or more “employees” must use E-Verify to confirm work authorization status of new hires – 90 day seasonal employee exemption inoperative RECLAIM NC redefined “employee” to mean a person whose term of employment is 9 months or more in a calendar year Effect of change is to exempt from E-Verify “small” businesses that rely on seasonal labor (i.e., employees who work less than 9 months in a calendar year) Also prohibits local governments from hiring contractors (and subs) who don’t use E-Verify

NC Farm Act Enhances legal protections for GAP certified fruit & vegetable producers Limits liability for farm animal & agritourism events, including county fairs Exempts farm buildings used for private and public events from State Building Code regulations Exempts one-story migrant housing from State Building Code sprinkler system requirements Allows landowners to withdraw water located on their property for agricultural uses during water shortages

NC Agriculture & Forestry Act Strengthens NC’s right-to-farm law, which protects farmers from nuisance lawsuits arising from development pressures Allows farms to change products, use new technologies, etc. without losing protection Farms who successfully defend themselves against “frivolous” or “malicious” nuisance suits entitled to attorney’s fees

Other Legislative Accomplishments Preserved agriculture & gardening exemptions in underground utility law (811) Economic development funds may be used to provide natural gas & propane to agriculture operations Grain elevators exempted from county zoning regulations NCDA&CS “sole” authority to regulate plants Clarified metal theft statute’s definition of copper

Questions? Jake Parker, Legislative Counsel North Carolina Farm Bureau (919)