Latest news with #taxexemption
Yahoo
4 days ago
- Business
- Yahoo
Jamestown City Council to consider tax exemption for Cavendish Farms
Jul. 25—JAMESTOWN — The Jamestown City Council will consider a request from Cavendish Farms for a 15-year payment in lieu of taxes at its regular meeting on Monday, Aug. 4. The City Council unanimously approved on Thursday, July 24, at its special meeting without recommendation sending the request to the Aug. 4 meeting. "There's a lot of people that need to gather a little more information," Mayor Dwaine Heinrich said, referring to Cavendish's request. "Hopefully there will be sufficient time. If not, we can always schedule another special City Council meeting or something else to do what we need to do." At the Jamestown Finance and Legal Committee meeting on June 26, Cavendish Farms was seeking a tax exemption for its expansion and improvements with an estimated cost of about $200 million. Cavendish was also looking for a tax exemption on constructing a wastewater treatment facility with an estimated cost of about $25 million to $35 million. Cavendish Farms is planning an expansion that will replace the fryer, expand the building by 55 feet and provide a better working environment and storage at the facility, Agweek reported in November. The expansion would modernize the existing facility and add 80 million pounds of production capacity, The Jamestown Sun reported in June. The request at the June 26 Finance and Legal Committee meeting was for a payment in lieu of taxes for about $2 million annually or $30 million over 15 years for the projects. "It'll actually be quite a bit lower than that number," said Josh Teigen, principal of Harvest Group which represents Cavendish. "The overall project will still be about the same size but just reallocation between real property and machinery and equipment." He said the request for the payment in lieu of taxes could be less than $1 million annually for up to 15 years. Teigen said the building expansion will be around $21 million for just the materials and labor. He said the architectural and engineering work would be another few million dollars on top of the $21 million. He said the wastewater treatment facility still has an estimated cost of about $25 million to $35 million. "So collectively, roughly $50 million," Teigen said. "It would be the due number for just the real property side of things. So previously, that was about $115 (million) so project size is still about the same, just a reallocation between real property and machinery and equipment." The expansion and wastewater treatment facility could create around 24 jobs, Teigen said. The Jamestown Finance and Legal Committee unanimously recommended approval to change the city of Jamestown's special assessment policy. If approved by the City Council, the share of special assessments for water and sewer districts will be 70% by the city and 30% for property owners. The current policy on the share of special assessments for water and sewer districts is 80% for property owners and 20% for the city. City Administrator Sarah Hellekson said the special assessment policy was 70% by the city and 30% for property owners for some water and sewer districts in 2022. "There was no mention of future water or sewer main projects," said Dorene Stroh, city assessor. "It was only referencing those specific projects. So that's why it's being brought back up to you now." In other business, the Finance and Legal Committee unanimously recommended approval of a request from the Jamestown/Stutsman Development Corp. to terminate its portion of the lease with the Jamestown Regional Airport Authority for a 5-acre area in the JMS Aviation Park for an implement dealership. The JSDC would recoup 70 cents per square foot for the infrastructure development, which comes to a total of more than $152,000, over a three-year period at about $50,800 annually from CLAAS. No interest will accrue over that three-year period. The JMS Aviation Park is an industrial and business park built by the JSDC. It is adjacent to Jamestown Regional Airport. JMS is the abbreviation and Federal Aviation Administration code for the Jamestown Regional Airport. CLAAS is planning to lease land in the JMS Aviation Park to construct two buildings for an implement dealership. The annual cost to CLAAS for the 5-acre land lease with the Jamestown Airport Authority is over $3,260 per year, The Jamestown Sun reported on July 15. The lease would be over 25 years. CLAAS is an implement dealership that sells tractors, combines, forage harvesters and other farming equipment. CLAAS is planning on building an 11,000-square-foot shop with four bays that will mostly be used for a parts warehouse. CLAAS will look to add another 60-by-70-foot warehouse for cold storage after the first year. The Jamestown Building, Planning and Zoning Committee unanimously recommended approval of a major subdivision and final plat of the Beyond Shelter First Addition. The property is located near 11th Avenue and 25th Street Southwest just west of Walmart. A planned senior housing apartment building will be constructed on the land west of Walmart. The apartment building will have 33 one-bedroom units and six two-bedroom units. The estimated cost is more than $15.4 million for the first phase of the project, which is the construction of the 39-unit senior housing apartment building. The project could have two more phases that would bring the full buildout of the senior housing project to 117 units. A public hearing and second reading of an ordinance will be held at the Aug. 4 City Council meeting to amend the district map to change the zoning of the Beyond Shelter First Addition from an agricultural district to a general multiple dwelling district. The property is located near 1104 25th St. SW. In related business, the City Council will consider a request for a 17-year payment in lieu of taxes for the construction of the 39-unit senior housing apartment building. Buffalo Manor Apartments LLLP, an affordable senior housing company, applied to the city of Jamestown for property tax incentives for new or expanding businesses under North Dakota Century Code 40-57.1 for payment in lieu of taxes. Under the payment in lieu of taxes, there would be zero payments over 17 years on the senior housing apartment building with Jamestown City Council approval. The terms of the tax incentive would begin in 2028 and end in 2044. Dan Madler, CEO of Beyond Shelter Inc., said the tax value on the 7.7 acres of land is projected to start at about $8,500 in 2028 and will increase 2% each year for a total collection of tax income of about $171,000 over the 17-year period. Solve the daily Crossword
Times
21-07-2025
- Business
- Times
The obscure rule that lets you bust the Isa allowance
Money worries are a horrible reality after the death of a spouse. But a little-known tax exemption could help ease some of the financial burden by boosting your Isa allowance way above the £20,000 annual limit. Additional permitted subscription (APS) allows a wife, husband or civil partner to inherit an Isa allowance from their partner, offering a popular, and legal, way to beat the taxman after a death. It allows a spouse to benefit from a higher tax-free allowance, even if their partner left the actual assets in the Isa to someone else. Savers have a £20,000 tax-free annual Isa allowance, but an APS can be applied to any new or existing Isa opened by someone whose spouse has died. This gives them an additional tax-free allowance for one year, equal to the value of their partner's Isa when they died. Once a person has died, their accounts become 'continuing Isas', accruing interest or returns on the stock market. This status ends either three years after death, when the administration of the estate is complete or when the Isa is closed — whichever one comes first. For example if your Isa had £10,000 in it when you died and your spouse had already used their full £20,000 limit for the year, they could increase their tax-free allowance for that year to £30,000. If the Isas contained £80,000, the spouse would have an allowance of £100,000 for the year. In many cases, the spouse will inherit the money in the Isa, but even if they don't, they can still claim the tax-free allowance. The time limit for claims is three years after death, or 180 days after the assets were distributed to the surviving spouse or other relatives. • Why the cash Isa shake-up was put on pause Before you can apply, the death must be registered with your spouse's Isa firm and you will have to prove that you were living with them when they died. APS applications should be made to the Isa manager that will ultimately be looking after the funds, so if you plan to move the money that would be your Isa firm, rather than the one that holds your spouse's account. That firm will then claim the APS on your behalf by contacting the other Isa manager to get the final value of the accounts and calculate the tax-free allowance. Not all Isa firms offer APS, however, so check to avoid unnecessary paperwork and stress. Sarah Coles from the investment platform Hargreaves Lansdown said: 'These inherited allowances aren't always well understood, but can be incredibly valuable — potentially protecting tens of thousands of pounds from tax.' Hargreaves Lansdown found that the number of clients inheriting Isas through APS went up a third in the last tax year, compared with 2023-24. It was two-thirds higher than in 2022-23. • My brother is getting a £40k early inheritance. Will I be stung with the tax bill? If you leave stocks and shares Isas to your spouse, all the investments can be transferred, but you have to do it within 180 days of the assets being distributed. Hargreaves Lansdown found that 48 per cent of those who went through the APS process didn't make any changes in the first year to the portfolio they inherited
CNN
20-07-2025
- Business
- CNN
New tax law increases big beyond-the-grave tax break for the wealthy
The US federal estate tax has come a long way since 2000, when the exemption level was set at $675,000. The amount has increased greatly over the past quarter century. Americans who die in 2025 may leave behind tax free to their heirs up to $13.99 million. That exemption level had been set to expire after this year and snap back to a little more than $7 million per person. But that won't happen. Instead, starting in 2026, the exemption level will increase by roughly 7.2% to $15 million and adjust for inflation every year thereafter. That's courtesy of the One Big Beautiful Act that Republicans pushed through in time for President Donald Trump to sign it into law on his self-appointed deadline of July 4. Keep in mind, while not new, the exemption level is effectively doubled for married couples. That's because any unused exemption from the first spouse who dies can be passed to the surviving spouse, and the decedent's estate can pass to the widow or widower tax free. Then, when they die, they will get up to two times the individual exemption level. So that comes to $27.98 million tax free for couples this year and $30 million next year. (It's also worth noting that the estate tax exemption level is the same as the lifetime gift tax exemption level. That means essentially how much you're allowed to exempt from estate taxes at death is reduced by how much you gave away in gifts while you were alive.) The OBBA did not change the federal tax rates imposed on the taxable portion of estates. They're set on a graduated scale, from 18% to 40% with the initial portion above the exemption level taxed at 18%, the next portion at 20% and so on up to 40%, which is well below the 55% top rate that applied in 2001. Raising the exemption level to $15 million a person is likely to further reduce the already low share of estates subject to the estate tax. In 2001, roughly 2.1% of Americans who died left behind taxable estates — and that number dropped to just 0.07% in 2019, according to the Congressional Research Service. That share was expected to rise to 0.2% in 2026, had the exemption level snapped back to roughly $7 million as was scheduled. Despite those very tiny percentages, the Joint Committee on Taxation estimates that the OBBA change will reduce federal revenue by nearly $212 billion over the next decade relative to what the law had called for before OBBA was enacted. Even if your estate or that of a loved one falls well below the federal exemption level, the estate may still be considered taxable in the state where a decedent was living when they died. As of this year, 12 states and the District of Columbia have an estate tax, according to the Tax Foundation. The states are: Connecticut, Hawaii, Illinois, Maine, Maryland, Massachusetts, Minnesota, New York, Oregon, Rhode Island, Vermont and Washington. The exemption levels and the tax rates imposed vary from state to state. In Massachusetts, for example, the exemption level is $2 million, and depending how much more an estate is worth above that threshold, it may be subject to a tax rate between 0.8% and 16%. In Washington, up to $3 million may be exempt from the state estate tax but rates run as high as 35% on the taxable portion of an estate.
Yahoo
20-07-2025
- Business
- Yahoo
New tax law increases big beyond-the-grave tax break for the wealthy
The US federal estate tax has come a long way since 2000, when the exemption level was set at $675,000. The amount has increased greatly over the past quarter century. Americans who die in 2025 may leave behind tax free to their heirs up to $13.99 million. That exemption level had been set to expire after this year and snap back to a little more than $7 million per person. But that won't happen. Instead, starting in 2026, the exemption level will increase by roughly 7.2% to $15 million and adjust for inflation every year thereafter. That's courtesy of the One Big Beautiful Act that Republicans pushed through in time for President Donald Trump to sign it into law on his self-appointed deadline of July 4. Keep in mind, while not new, the exemption level is effectively doubled for married couples. That's because any unused exemption from the first spouse who dies can be passed to the surviving spouse, and the decedent's estate can pass to the widow or widower tax free. Then, when they die, they will get up to two times the individual exemption level. So that comes to $27.98 million tax free for couples this year and $30 million next year. (It's also worth noting that the estate tax exemption level is the same as the lifetime gift tax exemption level. That means essentially how much you're allowed to exempt from estate taxes at death is reduced by how much you gave away in gifts while you were alive.) The OBBA did not change the federal tax rates imposed on the taxable portion of estates. They're set on a graduated scale, from 18% to 40% with the initial portion above the exemption level taxed at 18%, the next portion at 20% and so on up to 40%, which is well below the 55% top rate that applied in 2001. How many estates are affected? Raising the exemption level to $15 million a person is likely to further reduce the already low share of estates subject to the estate tax. In 2001, roughly 2.1% of Americans who died left behind taxable estates — and that number dropped to just 0.07% in 2019, according to the Congressional Research Service. That share was expected to rise to 0.2% in 2026, had the exemption level snapped back to roughly $7 million as was scheduled. Despite those very tiny percentages, the Joint Committee on Taxation estimates that the OBBA change will reduce federal revenue by nearly $212 billion over the next decade relative to what the law had called for before OBBA was enacted. Don't forget about your state Even if your estate or that of a loved one falls well below the federal exemption level, the estate may still be considered taxable in the state where a decedent was living when they died. As of this year, 12 states and the District of Columbia have an estate tax, according to the Tax Foundation. The states are: Connecticut, Hawaii, Illinois, Maine, Maryland, Massachusetts, Minnesota, New York, Oregon, Rhode Island, Vermont and Washington. The exemption levels and the tax rates imposed vary from state to state. In Massachusetts, for example, the exemption level is $2 million, and depending how much more an estate is worth above that threshold, it may be subject to a tax rate between 0.8% and 16%. In Washington, up to $3 million may be exempt from the state estate tax but rates run as high as 35% on the taxable portion of an estate. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
CNN
20-07-2025
- Business
- CNN
New tax law increases big beyond-the-grave tax break for the wealthy
The US federal estate tax has come a long way since 2000, when the exemption level was set at $675,000. The amount has increased greatly over the past quarter century. Americans who die in 2025 may leave behind tax free to their heirs up to $13.99 million. That exemption level had been set to expire after this year and snap back to a little more than $7 million per person. But that won't happen. Instead, starting in 2026, the exemption level will increase by roughly 7.2% to $15 million and adjust for inflation every year thereafter. That's courtesy of the One Big Beautiful Act that Republicans pushed through in time for President Donald Trump to sign it into law on his self-appointed deadline of July 4. Keep in mind, while not new, the exemption level is effectively doubled for married couples. That's because any unused exemption from the first spouse who dies can be passed to the surviving spouse, and the decedent's estate can pass to the widow or widower tax free. Then, when they die, they will get up to two times the individual exemption level. So that comes to $27.98 million tax free for couples this year and $30 million next year. (It's also worth noting that the estate tax exemption level is the same as the lifetime gift tax exemption level. That means essentially how much you're allowed to exempt from estate taxes at death is reduced by how much you gave away in gifts while you were alive.) The OBBA did not change the federal tax rates imposed on the taxable portion of estates. They're set on a graduated scale, from 18% to 40% with the initial portion above the exemption level taxed at 18%, the next portion at 20% and so on up to 40%, which is well below the 55% top rate that applied in 2001. Raising the exemption level to $15 million a person is likely to further reduce the already low share of estates subject to the estate tax. In 2001, roughly 2.1% of Americans who died left behind taxable estates — and that number dropped to just 0.07% in 2019, according to the Congressional Research Service. That share was expected to rise to 0.2% in 2026, had the exemption level snapped back to roughly $7 million as was scheduled. Despite those very tiny percentages, the Joint Committee on Taxation estimates that the OBBA change will reduce federal revenue by nearly $212 billion over the next decade relative to what the law had called for before OBBA was enacted. Even if your estate or that of a loved one falls well below the federal exemption level, the estate may still be considered taxable in the state where a decedent was living when they died. As of this year, 12 states and the District of Columbia have an estate tax, according to the Tax Foundation. The states are: Connecticut, Hawaii, Illinois, Maine, Maryland, Massachusetts, Minnesota, New York, Oregon, Rhode Island, Vermont and Washington. The exemption levels and the tax rates imposed vary from state to state. In Massachusetts, for example, the exemption level is $2 million, and depending how much more an estate is worth above that threshold, it may be subject to a tax rate between 0.8% and 16%. In Washington, up to $3 million may be exempt from the state estate tax but rates run as high as 35% on the taxable portion of an estate.
