Pipefine Patio Furniture

Bill would give deductions, credits to consumers, retailers
Furniture Today, July 31, 2009

Two Georgia congressmen have filed a bill that would give a variety of income tax deductions and credits to consumers and retailers who purchase home furnishings and building products.

Known as the Home Improvements Revitalize the Economy (Hire) Act of 2009, the bill is designed to stimulate two industries the congressmen say have $67 billion in economic value.

“Not only would this bill help stimulate the manufacturing market for home furnishings and building products, it would save and create retail jobs, generate billions in revenue and increase home values at a time when we really need a boost,” said Rep. Hank Johnson, a Democrat who is co-sponsoring the bill with Republican Rep. Nathan Deal.

The bill would provide a tax deduction of up to $2,000 for families with household income of $300,000 or less who purchase qualifying home furnishings or building products through Dec.31, 2011. The deduction could be taken even if the taxpayer doesn’t itemize other deductions. For lower income families, the bill allows a tax credit of up to $500 for qualifying purchases. The income ceiling for the credit was not immediately clear.

In addition, retailers and contractors who purchase home furnishings and building products for resale to consumers are eligible for a tax credit of 10% of the wholesale purchase price. The credit would be capped at $10,000 annually.

The applicable deduction or credit would be doubled if the products meet recognized environmental standards such as Energy Star or LEED, according to the bill. The bill defines qualified building products and home furnishings as those which are used in the taxpayer’s principal residence and installed within six months of the purchase date. Electronics, appliances, housewares, artwork, photographs and “other home decorations” are not eligible for any of the proposed deductions or credits.

The measure has been endorsed by the International Sleep Products Assn., the American Home Furnishings Alliance and the National Home Furnishings Assn. The three groups are among 14 trade associations that make up the American Home Furnishings and Building Products Coalition, which was formed last December.

[Ed: Special interest groups at it again! Get ready to fork out more of your hard-earned money to subsidize yet another sector with their hands out. Whatever happened to the free economy that made this country the greatest powerhouse in the world?]

Consumers complained about retail incentive program
Heath Combs — Furniture Today, June 29, 2009

BBZ Resource Management, which offered a free gas and grocery voucher incentive program tied to purchases of furniture and other products, has filed for Chapter 11 bankruptcy protection.

The filing in U.S. Bankruptcy Court in Arizona has few details, listing both assets and liabilities of between $1 million to $10 million.

Several Better Business Bureau offices began issuing alerts about Mesa, Ariz.-based BBZ this month after receiving more than 225 complaints from 40 states about its gift card voucher program. In addition, KNXV-TV in Phoenix reported that the Oregon attorney general’s office is investigating BBZ as a possible pyramid scheme.

The vouchers were offered as promotions by retailers including furniture stores, electronics chains and car dealers, among others. Typically, they advertised $100 to $500 worth of free gas or groceries with purchases.

Vouchers were sold to retailers via brokers by BBZ. Consumers were to send BBZ receipts from gas and grocery purchases, and BBZ was supposed to issue gift card rebates adding up to the total offer of the promotion.

Most of the complaints were for non-receipt of gift cards, delays in getting them, non-activation of the cards, or that they were only good for a gas station outside of consumer’s area, the BBB said.

Ashley Furniture HomeStores was one of the largest furniture retailers to sell the vouchers. Steve Phillips, who co-owns six Ashley stores located mostly in St. Louis, ran the promotion in February and said he’d recently begun to be deluged with complaints.

Phillips said he has set up a Web site to handle the complaints and has begun working with a new company, through representatives that sold him the voucher program, to redeem customers’ certificates.

Kerry Lebensburger, Ashley Furniture president of sales, said BBZ claimed the program was bonded and insured, and suggested that participants in the program talk to their lawyers about seeking those funds.

BBZ claimed to have issued 160,000 certificates in March, the St. Petersburg (Fla.) Times reported.

Furniture/Today was unable to reach BBZ, whose offices refer all inquiries by phone to a Web site. Bankruptcy papers listed the president of BBZ as Justin Elenburg.

The BBB reported that it believed the company was run by Troy Warren. Furniture/Today was unable to reach Warren’s attorney, Peter Gorski.