THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Saturday, October 21, 1995 TAG: 9510210276
SECTION: LOCAL PAGE: B3 EDITION: NORTH CAROLINA
SOURCE: ASSOCIATED PRESS
DATELINE: HIGH POINT LENGTH: Medium: 56 lines
A move by U.S. House members to eliminate a tax break for local families during the semiannual furniture market here has been deterred with the help of U.S. Sen. Jesse Helms.
The North Carolina Republican persuaded Senate Finance Committee Chairman William Roth, R-Del., to retain the law, according to a Helms spokesman.
The measure lets about 10,000 families surrounding High Point to rent their homes tax-free to visitors to the market.
The committee's decision comes just weeks after some House members started a move to eliminate this tax break. House and Senate leaders still must work out differences between competing tax bills, but supporters of the loophole are confident the tax break will hold up through the negotiations.
``At this point, we feel pretty good about things,'' said Steve Phillips, a senior aide to Helms. ``Senator Helms was very concerned about the House provision. It makes no sense to punish the good folks in High Point, North Carolina.''
The High Point area has just 12,000 hotel rooms to serve the 70,000 people who visit the International Home Furnishings Market. To fill the gap, families rent their homes to out-of-town industry retailers and officials.
A typical four-bed house rents for $1,800 to $2,500 for a 6 1/2-day stay - meaning participating homeowners could have lost hundreds of dollars in taxes.
High Point business leaders feared the financial loss and accompanying paperwork would discourage people from renting their homes.
``We're just really optimistic and grateful to Sen. Helms and his staff for having gone to bat for us,'' said Sallie Hendrix, governmental affairs director at the High Point Chamber of Commerce.
The furniture market began its nine-day fall session on Thursday. Between fall and spring, the market is expected to bring $236 million into the city's economy this year.
The fall market comes during one of the industry's worst periods in recent years. Retail sales were soft in the first half of 1995, which translated into fewer shipments from manufacturers. ILLUSTRATION: ASSOCIATED PRESS photo
Buyers inspect products at the McCollum Lamps display in the Market
Square showroom Thursday in High Point. About 70,000 buyers and
exhibitors from around the world attend the fall International Home
Furnishings Market, which began its nine-day run Thursday. Sen.
Jesse Helms is fighting a measure that would eliminate a law
allowing families to rent their homes tax-free to visitors to the
market.
by CNB