Licensed Contractors: What’s in a Name

CE Class – Licensed Contractors: What’s in a Name


HBAWS Education – Licensed Contractors: What’s in a Name

Date: Tuesday, April 24

Time: 11:30am

Location: HBAWS office


Event Description:


HBAWS CE – Licensed Contractors: What’s In a Name?
Presented by Frank Wiesner, Executive Director of the North Carolina Licensing Board for General Contractors

It matters how you conduct your business whether you are entering into contracts with customers, advertising, applying for permits and any other matter in which you are portraying yourself as an individual or corporate entity with intent to conduct business as a North Carolina Licensed General Contractor.  Nearly 30% of all HBA Builder Members are not operating in a 100% correct manner.  Be certain that you are!  Why does this matter?  More information from the NCLBGC below…


*2 General Continuing Education Credit available towards your HABWS required credits


 

2018 Meetings, Events, Socials

2018 Meetings, Events & Socials

Builder’s Lunch Break and Learn meets the 1st Tuesday Monthly, 12:00pm
Professional Women in Building meets the 1st Tuesday Monthly, 5:30pm

Spike / Membership Committee meets the 1st Wednesday, call for times
Remodelers Council meets the 2nd Tuesday Monthly, 6pm
Associate Members Committee meets the 2nd Thursday Monthly, 4 – 5pm

Exec Board & Board Meetings are 3rd Tuesday Monthly


April 28, 29

Spring Parade of Homes – sponsored by Smith Phillips Building Supply & Allegacy Federal Credit Union


May 3

Spring Parade Breakfast – sponsored by Smith Phillips Building Supply

May 5, 6

Spring Parade of Homes – sponsored by Smith Phillips Building Supply & Allegacy Federal Credit Union

May 10

Spring Golf Tournament – sponsored by Builders FirstSource

May 22, 23

NCHBA 2nd Quarter Meetings & Legislative Visits, Raleigh, NC

May 24

HBAWS CTE Awards Day at WSFCS Career Center


June 7

Food Truck Blitz for Habitat – sponsored by Ferguson Enterprises


August 16

BUILD PAC Beer & Wine Social – sponsored by BMC

Date: TBD
Political Mixer


September 20

Cornhole Tournament & Members Social

September 11 – 13, 2018

NCHBA 21 Century Expo & 3rd Quarter Meetings, Charlotte, NC


October 13, 14 and 20, 21

Fall Parade of Homes – sponsored by BB&T
October 10 – Parade PreQualifying
October 11 – Parade Judging

October 16 – Fall Parade Breakfast 
October 18 – Golden Home Awards Gala – co-sponsored by Pine Hall Brick


November 2

Sporting Clays

November 27

Membership Meeting


 December 3, 4

NCHBA 4th Quarter Meetings, Greensboro, NC

New Law Clarifies Sales Tax on Labor

New Law Clarifies Sales Tax on Labor

 govaffairs

NEW LAW CLARIFIES SALES TAX ON LABOR

On August 11, 2017, the Governor signed SB 628 (Various Changes to the Revenue Laws) which, among other provisions, contained several clarifying changes to sales and use tax on labor applicable to residential construction. Here is a brief description of the sales tax law and the fixes which NCHBA helped bring about:

CURRENT LAW: All labor pursuant to a “real property contract” (between a real property contractor and another person to perform construction, reconstruction, or remodeling with respect to a capital improvement) is not subject to the sales or use tax. Sales tax continues to be levied on the materials. A “capital improvement” is “an alteration to real property that is new construction, reconstruction, or remodeling of a building, structure, or fixture on land that becomes part of the real property or is permanently installed in the real property”.

In short, labor charges for new construction and most remodeling activities are not subject to sales tax on labor because they will meet the definition of “capital improvement” pursuant to a “real property contract”.

SPECIFIC EXAMPLES: NCHBA fought to keep the specific exclusion of the “performance of work that requires the issuance of a permit under the State Building Code” (a residential project that costs $15,000 or more) as a specific statutory example of a “capital improvement”. Also excluded from taxation are services performed to resolve an issue that was part of a real property contract within twelve months of the new structure being occupied for the first time (warranty call- backs). The new law also expands the definition of “capital improvement” to include patios and decks. Painting and wallpapering continue to be exempt from tax on labor except where they are “incidental” to the RMI service. NCHBA was able to expand the term “remodeling” to include “a transaction where the internal structure or design of one or more rooms or areas within a room or building are substantially changed.” However, “the term does not include a single repair, maintenance, and installation service.” Other exempt activities and are listed on the NC Department of Revenue’s website.

LAW CLEARLY STATES THAT GENERAL CONTRACTOR MUST PROVIDE AFFIDAVIT (Form E-589CI) TO SUBCONTRACTOR: To notify the subcontractor that the project is a capital improvement (and therefore, exempt), the general contractor must provide the Form E-589CI to each subcontractor. However, a separate form may not be required to be supplied to the same subcontractor for each project (see “blanket use” instructions on form).

TAX ON RMI LABOR DUE WHEN NOT A CAPITAL IMPROVEMENT: A single repair, maintenance or installation (RMI) service does not qualify as a capital improvement. The replacement of a fixture in or on a building or structure is not a capital improvement unless the replacement is a part of remodeling. See RMI examples also listed on the NC Department of Revenue’s website.

MIXED TRANSACTION TEST INCREASED TO 25%: Some remodeling projects may include activities which qualify as a capital improvement (no tax on labor) and activities that constitute a repair (tax on labor). However, no tax will be due on labor in these “mixed transactions” if the price of the repair, maintenance or installation (RMI) service does not exceed twenty-five percent (25%) of the contract price (was 10% under old law). If the RMI portion of the job exceeds 25% of the contract price, then sales and use tax applies only to the RMI labor portion of the contract.

ALL TYPES OF COMMERCIAL REMODELING ARE NOW EXEMPT: Under the old law, commercial remodeling done by a tenant or lessee was not defined as a capital improvement unless the project was given immediately to the owner. The new law fixes this problem and all types of commercial remodeling are now exempt from the sales tax on labor if it otherwise meets the definition of a capital improvement.

USE FORM E-595E WHEN PURCHASING ITEMS FOR AN RMI: Since the homeowner pays the sales tax on the entire sales price of an RMI project (labor, materials and any markup) for a repair, maintenance or installation, you should use the Form E-595E when purchasing items to use for that nonexempt project. This form notifies the retailer to not charge for the sales tax on the materials used. The Form E-595E is located on the DOR website.
FOR MORE INFORMATION: Contact Mike Carpenter, mcarpenter@nchba.org, or Tim Minton, tminton@nchba.org, or call NCHBA at (800) 662-7129.

Construction Career Days

IMG_0779Construction Career Days 2017
Winston-Salem Fairgrounds & Education Building
November 7 & 8, 2017
8:00 a.m. – 3:00 p.m.

SPONSOR AND EXHIBITOR INFORMATION & REGISTRATION


Construction Career Days EXHIBITOR Opportunities
We are seeking 35 indoor exhibitors and participation is free. The best way to engage students is through hands-on-activities and we strongly encourage you to include interactivity at your booth. We have found that exhibitors with hands-on activities have the most traffic and the best chance of getting their message across. The planning committee is available to help you design an activity, if needed. We have space for a few additional outdoor exhibitors as well. The main focus of all exhibitors will be to share information with high school students about career pathways within their organizations in a fun and informative way.

Career Day Sponsor-Exhibitor Registration Form–2017


Construction Career Days SPONSOR Opportunities
To address the skilled workforce shortage the Chamber’s Construction Industry Council, in partnership with the North Carolina Department of Transportation and the organizations listed below, are hosting a two-day Construction Career Days event. About 1,200 students from Forsyth and 14 surrounding counties attend. The event purpose is to expose high school students to the latest equipment, tools, and innovations available in construction related industry careers through interactive, hands-on activities, the operation of heavy equipment, and one-on-one conversations with skilled- trade professionals and educators.


Construction Career Days SPONSOR Opportunities
To address the skilled workforce shortage the Chamber’s Construction Industry Council, in partnership with the North Carolina Department of Transportation and the organizations listed below, are hosting a two-day Construction Career Days event. About 1,200 students from Forsyth and 14 surrounding counties attend. The event purpose is to expose high school students to the latest equipment, tools, and innovations available in construction related industry careers through interactive, hands-on activities, the operation of heavy equipment, and one-on-one conversations with skilled- trade professionals and educators.

Event Presenting Sponsor – $5,000
 Company logo prominently located on event program and webpage
 Link to company landing page placed on Construction Career Days event page on Chamber site
 Company listing on all event promotional materials, including e-mail blasts and press releases
 Dedicated PowerPoint slide w/logo added to rolling presentation shown during the two-day event
 Verbal recognition at event
 Sponsor can contribute to Chamber blog
 Media invited to event, Sponsor will have the opportunity to participate in interviews, etc.

Gold Sponsor – $1,000
Company logo on event program and webpage; Link to company landing page placed on Construction Career Days event page on Chamber site; Company listing on all event promotional materials, including e-mail blasts and press releases; Dedicated PowerPoint slide with company logo added to rolling presentation shown during the two-day event; Verbal recognition at event; and Sponsor can contribute to Chamber blog.

Silver Sponsor- $500
Company logo on event program and webpage; Link to company landing page placed on Construction Career Days event page on Chamber site; Company listing on all event promotional materials, including e-mail blasts and press releases; Company logo added to rolling PowerPoint presentation shown during the two-day event; Verbal recognition at event; and Sponsor can contribute to Chamber blog.

Bronze Sponsor – $300
Company logo on event program and webpage; Link to company landing page placed on Construction Career Days event page on Chamber site; Company listing on all event promotional materials, including e-mail blasts and press releases; Company logo added to rolling PowerPoint presentation shown during the two-day event; and Verbal recognition at event.

 


Career Day Sponsor-Exhibitor Registration Form–2017

Event Sponsors:

Donations are non-refundable and MUST accompany registration in the form of cash or check.
Make checks payable to: Winston-Salem Chamber of Commerce Foundation C/O Construction Industry Council

Mail Payment and Registration Form to:

Winston-Salem Chamber of Commerce
Construction Industry Council (Attn: Rodessa Mitchell)
411 West 4th Street, Suite 211, Winston-Salem, NC 27101
Phone: (336) 728-9222 Fax: (336) 721-2209
Email: mitchell@winstonsalem.com


 

PWB Leadership Report

January 2017 Leadership Report
Miranda Kempton, 2017 President of Professional Women in Building (HBAWS)

 
Our Professional Women in Building Group had our January meeting at Uncorked Masterpiece in Reynolda Village. It was time once again for our annual “painting party”. Everyone had a great time creating their own artwork and socializing. We did touch on a couple of main topics.
The first topic we discussed consisted of everyone volunteering more for the 2017 year. This is a very important topic because it started our PWB year with teamwork and getting ready to tackle all our tasks as a TEAM 
Our second topic consisted of the Triad Home & Garden Show. I spoke about everyone bringing in gardening supplies for our February meeting. The February meeting, we will discuss more about the show and iron out all our details for volunteers, booth setup and etc.
Next month, we will be back at the HBAWS office for our February meeting.
Miranda Kempton
Bloomday Granite & Marble

SALES TAX ON REPAIR, MAINTENANCE AND INSTALLATION IN RESIDENTIAL CONSTRUCTION

SPECIFIC EXAMPLES: Among the specific examples of a “capital improvement” is “performance of work that requires the issuance of a permit under the State Building Code” (a residential project that costs $15,000 or more). Other examples include painting, wallpapering and landscape services. Specifically excluded from taxation are services performed to resolve an issue that was part of a real property contract within twelve months of the new structure being occupied for the first time (warranty callbacks). Home inspections, debris removal, pest control and fees for inspections required by law are also specifically exempt. Those subcontractors who operate as a “retailer-contractor” (i.e., provide subcontractor services to builders and others) are also exempt when the entity acts as a real property contractor.

TAX ON RMI LABOR DUE WHEN NOT A CAPITAL IMPROVEMENT: A single repair, maintenance or installation service does not qualify as a capital improvement. The replacement of a fixture in or on a building or structure is not a capital improvement unless the replacement is a part of remodeling. Some remodeling projects may include activities which qualify as a capital improvement (no tax on labor) and activities that constitute a repair (tax on labor). However, no tax will be due on labor in these “mixed transactions” if the price of the repair, maintenance or installation (RMI) service does not exceed ten percent (10%) of the contract price. If it exceeds 10% of the contract price, then sales and use tax applies only to the RMI labor portion of the contract.

GENERAL CONTRACTOR MUST PROVIDE AFFIDAVIT TO SUBCONTRACTOR (Form E-589CI): The NC Department of Revenue (DOR) has opined that this affidavit generally must be provided to substantiate that the work is a capital improvement. This Form E-589CI was just made available on the DOR website on 12/09/16 along with the following explanation: The N.C. Department of Revenue has published the Form E-589CI, Affidavit of Capital Improvement, and a corresponding notice. The Form E-589CI is generally required to substantiate that a contract, or a portion of work to be performed to fulfill a contract, is to be taxed for sales and use tax purposes as a real property contract with respect to a capital improvement to real property. Failure of a person to issue Form E-589CI, other than for the permitted exceptions discussed within this Important Notice, to substantiate that a transaction is for a real property contract with respect to a capital improvement subjects the transaction to tax as a retail sale of repair, maintenance, and installation services for real property in accordance with N.C. Gen. Stat. § 105-164.4(a)(16). The instructions (printed on the reverse of the form) summarize the following exceptions to DOR’s requirement to issue Form E-589CI: The following are exceptions for transactions where Form E-589CI is not required to be issued to substantiate that the transaction is taxed, as applicable, for sales and use tax purposes as a real property contract with respect to a capital improvement to real property. • Painting or wallpapering real property, or parts thereof. • Landscaping service. Form E-589CI is not required to be issued by the specific person for a transaction noted below. The exceptions do not apply to transactions between a general contractor hired to oversee the entire contract and one of its subcontractors (See “Blanket Use” of Form E-589CI (Section II) for possible exceptions.). The following exceptions do not apply to remodeling. • A real property owner or other person hires a general contractor to oversee the entire contract and the contract is for “new construction” as defined in N.C. Gen. Stat. § 105- 164.4H(e)(2). • A real property owner or other person hires a general contractor to oversee the entire contract and the contract is to rebuild or construct again a prior existing permanent building, structure, or fixture on land (reconstruction as defined in N.C. Gen. Stat. § 105- 164.4H(e)(3)). • A general contractor that purchases all tangible personal property and digital property to fulfill the real property contract and provides the employee labor to fulfill the real property contract. With respect to the form itself, the Section 1 is for “single use” (where there is no recurring business relationship between the contractor and the subcontractor) and Section II is for ‘blanket use” (where there is a recurring business relationship). Experience would suggest that most residential general contractors (whether new construction or remodeling) will be able to utilize the “blanket” version as builders typically utilize the same subcontractors on a recurring basis. [NCHBA questioned DOR why this affidavit needed to be furnished with respect to new construction as it is, by definition, a capital improvement. This issue will likely be further addressed in the upcoming session.]

DOR DIRECTIVES: On 11/15/16, the NC Department of Revenue issued two directives relative to these changes. The first, SD-16-3, addresses the application of sales and use taxes to a real property contract with respect to a capital improvement for real property. The second, SD-16-4, addresses a number of issues relative to the application of sales and use tax concerning repair, maintenance and installation (RMI). Please consult these directives for more discussion and examples.

FOR MORE INFORMATION: Contact Mike Carpenter, mcarpenter@nchba.org, or Tim Minton, tminton@nchba.org, or call NCHBA at (800) 662-7129. 

Gary Embler, NCHBA Officers Installed in Pinehurst

Gary Embler, a member of the Greater Charlotte Home Builders Association, was installed as the 2017 President of the North Carolina Home Builders Association last Wednesday, November 30 at the NCHBA Installation Dinner and Hall of Fame Awards in Pinehurst, NC.

garyemblerfamily
Embler is pictured to the right with his wife, Kelli, and their three daughters,
Kristyn, Kelsie and Kaelyn.

Officers of the 2017 NCHBA Executive Committee, NC Professional Women in Building Council and Executive Officer Council also took their oaths of office.

Remodelers Council

Leadership Report
View More: http://jeremy-skyler.pass.us/20160429Robbie Jester, Remodeler’s President

Remodelers Christmas Social
December 13, 6 – 8:30pm
Five Points – Event Room

 

hbaws_dobizwithmembers (2)

Robert Jester, Branch Manager
Ferguson – a Wolseley Company
7905 North Point Blvd.  Winston-Salem · NC · 27106
T: +1 (336) 759 0253 · F: +1 (336) 759 0857 C: +1 (336) 345 3025
E: robert.jester@ferguson.com
www.ferguson.com

Professional Women in Building

2016 Leadership Report
Jennifer Kresge
President, P
rofessional Women in Building

View More: http://jeremy-skyler.pass.us/headshots

In September, the PWB met in my showroom at Murray Supply Company.
It was nice to have an offsite meeting, in a big open space, while enjoying delicious pizza and wings from 66 Pizzeria.

The first order of business was about the upcoming Habitat Women’s Work Series classes being held in September.  Here is the list of volunteers and classes that will be held this month:

September 15th-Thursday- 6-7:30pm- Energy Efficiency– Cathy & Miranda

September 24th– Saturday- 9-10:30am– Sissy

September 29th– Thursday- 6-7:30pm- Caulking Tips- Debbie & Tracy

Habitat is throwing a closing reception on December 15th from 6pm-7:30pm for the Women’s Work Series participants and the coaches. If you want to attend, just click on the link below to register. Make sure you signify that you are a “coach” somewhere on the form.

http://www.habitatforsyth.org/event/womens-work-series-closing-reception/?instance_id=685

The second topic of conversation, was about picking officers for our PWB group for next year.  I am very happy to announce the following people will be leading our great group next year:

President- Miranda Kempton

Vice-President- Jennifer Sapp

Secretary- Jody Welch

Treasurer- Judy Redding

Congratulations to all, and I know you are going to do a fabulous job!!

Also, at our September meeting, we collected items from a “Family Wish List” that Debbie Fletcher got for us from the Ronald McDonald House.  We were able to fill up almost three boxes worth of items needed for the families staying at the house. I was overwhelmed by the amount of items all the ladies brought in for donation. Thank you all for your support. A special “thank you” goes to Debbie for getting that list for us, and for taking all the material up to the Ronald McDonald House.

Our next meeting will be on October 4th, at Sheila Wilson’s house for our annual Build Pac Poker night.  Hope to see everyone there!!

JENNIFER KRESGE,
Showroom Consultant
Murray Supply Company
260 Olive Street
Winston-Salem, NC 27103
336-765-9480
Jennifer.kresge@murraysupply.com