OTM Banner

On the Move-November 11, 2014
Cab Darrell Honored at 5th Annual MADAF Gala
The Maryland Automobile Dealers Association Foundation [MADAF] hosted it's 5th annual black tie gala in Chevy Chase, MD on Saturday, November 8th.  Guests from around the state joined us for an evening filled with dancing, dinner, and remembering those who made our industry the powerhouse that it is today.

This year, we established Cavendish "Cab" Darrell (1910-1981) as the first member of the MADAF Legends Hall.  Cab Darrell spent 30 years of  his illustrious career as executive director of MADA, formerly known as The Automobile Trade Association of Maryland.   He was hired in 1945 and retired in 1975.  During his 30 year tenure, he helped craft the 1973 Manufacturer's Licensing Bill.  The bill was one of the first such laws in the entire United States and it still serves as a model for state laws regulating relationships between manufacturers, distributors and factory branches and their new vehicle dealers. Cab was highly regarded amongst his peers in Annapolis; even receiving House Resolution #175 which extended the regrets and well-wishes from the House of Delegates after a bout of pneumonia which caused him to be hospitalized.  His success as a lobbyist on behalf of the new vehicle dealers in Maryland was legendary, hence his establishment as a member of our Legends Hall.  

Beyond his successes in business, Cab was a gifted athlete.  He played lacrosse for both Boys' Latin and Johns Hopkins University.  In 1932, Cab and other teammates from JHU represented the Unites States in the Olympics on the lacrosse team.  Cab also played for the Mount Washington Club Lacrosse team and taught the sport throughout Europe. 
Sam Weaver, Butch Darrell, Tom Walls, and Peter Kitzmiller
Cab's son, Charles "Butch" Darrell, attended the gala event and received an award, a crystal tablet bearing his father's image.  He was deeply honored on behalf of his father and had the following to share, "my father loved this industry and was committed to the success of dealers.  I know that he would have been so pleased to be a part of this evening and the worthy scholarship program that your Foundation provides."  

The gala evening ended with live jazz provided by the Sharon Clark Group.   We thank everyone who joined us for this special event and we look forward to seeing you in 2015!
MADAF Awards Five Scholarships in 2014!
MADAF announces that the board voted to award five scholarships for the 2014-2015 academic year.  Our scholarship selection committee consisting of JP Bishop, MADA Vice-Chairman, Ethel Biensach and the head of the Maryland Teacher of the Year program Dr. Darla Strouse chose to award three two-year scholarships and two Automotive Dealer Education Institute scholarships.  Michele Matheson, a student at Mt. Saint Mary's University in Emmitsburg, MD, received one of the two-year scholarships.  Michele is sponsored by Jim Coleman Automotive in Clarksville and intends to have a career in dealership management ultimately as a General Manager. The second two-year scholarship was awarded to Cierra Roberts attending Frostburg University. Cierra is sponsored by Thomas Subaru in Cumberland and intends on having a career as a finance manager.  Erik Wright is the recipient of our third two-year scholarship.  Erik is currently a student at West Virginia University.  He is sponsored by Brown's Toyota Scion of Glen Burnie and intends on having a career in vehicle design and engineering.

The two remaining scholarships were awarded to Alex Bratten and Chris Brokenborough both going through the Automotive Dealer Education Institute which is sponsored by WANADA.  Both Alex and Chris intend on having careers as highly skilled automotive technicians.

MADAF is now in the process of collecting applications for the 2015-2016 academic year.  If you know of a deserving student, please consider sponsoring them for this scholarship.  Applications may be downloaded by Clicking Here.
American Fidelity Hosts Free Webinar-
Health Care Reform: Considerations for the Business Manager
Many employers have questions about Health Care Reform. The first step is understanding what's required - and American Fidelity Administrative Services can help!

Maryland Auto Dealers Association members are invited to join American Fidelity Administrative Services on Thursday, November 20th for a free webinar to learn more about Health Care Reform and considerations for the business manager. Topics will include:
  • Public Exchange (Marketplace)
  • Individual Mandate
  • Federal Premium Tax Credit to Purchase Exchange Coverage
  • Employer Mandate
  • 6055 and 6056 Reporting
  • The Cadillac Tax

Date: November 20th, 2014 

Time: 10:00a.m. - 11:00a.m. EST

IRS and Social Security Announce Increased Benefits for 2015
With the 2015 tax year right around the corner, there is good news coming from the IRS. According to a recent announcement, the tax agency has increased several tax breaks due to inflation adjustments.

Here is a rundown of some of the changes:

Contributions to 401(k) and 403(b) Plans.
Taxpayers can contribute up to $18,000 for 2015, up $500 from 2014. The catch-up contribution amount for those age 50 and older increases to $6,000 from $5,500.

IRAs.
The limit on annual contributions to traditional and Roth IRAs remains unchanged at $5,500 for 2015. The extra catch-up contribution for those age 50 and over remains $1,000.

Phase-out amounts for traditional IRAs.
The deduction for taxpayers making contributions to a traditional IRA is phased out in 2015 for singles and heads of household who are covered by a workplace retirement plan and have modified adjusted gross incomes (AGI) between $61,000 and $71,000, up from $60,000 and $70,000 in 2014.

For married couples filing jointly, in which the spouse who makes the IRA contribution is covered by a workplace retirement plan, the income phase-out range is $98,000 to $118,000, up from $96,000 to $116,000.

For an IRA contributor who is not covered by a workplace retirement plan and is married to someone who is covered, the deduction is phased out if the couple's income is between $183,000 and $193,000, up from $181,000 and $191,000. For a married individual filing a separate return who is covered by a workplace retirement plan, the phase-out range is not subject to an annual cost-of-living adjustment and remains $0 to $10,000.

Phase-out amounts for Roth IRAs.
The AGI phase-out range for taxpayers making contributions to a Roth IRA is $183,000 to $193,000 for married couples filing jointly, up from $181,000 to $191,000 in 2014.

For singles and heads of household, the income phase-out range is $116,000 to $131,000, up from $114,000 to $129,000. For a married individual filing a separate return, the phase-out range is not subject to an annual cost-of-living adjustment and remains $0 to $10,000.

The 2015 AGI limit for the saver's credit (also known as the retirement savings contribution credit) for low and moderate-income workers is $61,000 for married couples filing jointly, up from $60,000 in 2014. For heads of household, it is $45,750, up from $45,000; and for married individuals filing separately and for singles, it is $30,500, up from $30,000.

For further information, details, and other plan limits, please read the rest of the article which is provided by Councilor, Buchanan, and Mitchell, P.C.
New Minimum Wage Laws Require New Labor Law Posters
Maryland employers are required under the law to post the state's minimum wage in the workplace. Beginning on January 1, 2015 the state's minimum wage is rising to $8.00/hour. Please update your labor law posters to ensure that you are in compliance with this change.  New posters can be purchased from the Pennsylvania Automotive Association.  

Note: If your business is in Montgomery or Prince George's counties, those jurisdictions raised their minimum wages effective Oct. 1, 2014 to $8.40/hour. Employers in these counties are required to post the applicable rate information, which you can download as follows:
MD MVA Announces Implementation of Electronic Safety Inspections
The MD Motor Vehicle Administration (MVA) is now using electronic safety inspection certificates.  This new process is a result of HB 246 which passed during the 2014 General Session.  HB 246 removes the requirement for a written inspection but still requires that dealers inspect all vehicles prior to sale.  

There are currently three formats in which the electronic safety inspection certificate can be presented:
  1. Paper Certificate-the same process as was previously used.
  2. Paper Electronic Certificate-Control number begins with an "E" and signature is machine printed.  Accepted using the same process as a paper certificate.
  3. Electronic-the vehicle information including the year, make, and VIN along with the mileage and the inspection date are transmitted to the MVA.  This information will appear on the database when titling and/or issuing new or transferring current registration plates.  
Implementation is scheduled for November 2014.  

For further information, please review the provided MVA Bulletin which details the changes. 
Dealers Must Display 2015 Fuel Economy Guides
The Environmental Protection Agency and Department of Energy have released a preliminary 2015 Fuel Economy Guide which is available for download and print.

Dealers selling new vehicles with a gross vehicle weight rating under 8,500 lbs are required to prominently display paper copies of the guide at each location where new vehicles are offered for sale. These guides must be available for free upon customer request.

Beginning with the 2008 model year vehicles, city and highway estimates account for conditions such as higher speeds and faster accelerations, air conditioning use and cold temperature operation. Further details regarding the determination of gas mileage (mpg) ratings are available on the EPA website.

The annual fuel cost estimates in the electronic fuel economy guide are updated weekly to match the Energy Information Administration's current national average prices for gasoline and diesel fuel. Paper copies of the guide are no longer mailed automatically. To request a paper copy of the guide, call the DOE's Energy Efficiency and Renewable Energy Information Center at (877) 337-3463 or visit the website.

New Webinars Announced from DealersEdge 


 #1: New IRS Tax Policies and Applications Help Defray Image Program Construction Expenses

   

Date/Time: Thursday, November 13 at 1pm Eastern

Presenter: Stephen Bedell CPA, Crowe Horwath LLC     

Cost: $149.00 per person

     

Construction projects consistent with the Image Programs of most OEMs are evident just about everywhere. Along with those glowing modern new facades come a hefty price tag. Discover a few tax strategies that can help offset those costs with tax savings. Learn about new IRS regulations and how they apply.  This webinar will cover the following:  

  • NEW Tangible Property Regulations and their impact on the capitalization vs. expense question
  • How the NEW Tangible Property Regulations can apply to current and future projects...or even some past projects
  • NEW Property Disposition Regulations - options for property being replaced 
  • How Cost Segregation Studies are impacted by the new regulations
  • IRS documented position on facility image upgrade payments...NEW in 2014

#2: Getting All Auto Group Parts Managers of All OEMs on a Common Reporting System    

 

Date/Time: Thursday, November 20 at 1pm  

Presenter: Chuck Hartle' of PartsEdge  

Cost: $149.00 per participant   

 

Measuring parts department performance in multi-make auto groups can be a challenge. Most will claim that the OEM parts systems are so different and diverse that they prevent Store A to Store B comparisons. Everyone seems to operate with a different set of numbers. Some say it is necessary..."Not so" says parts and inventory management guru Chuck Hartle'. In this workshop, Chuck will describe and detail for you a process for creating a suite of very basic measurements and reports that allow for comparisons from one store to another regardless of the OEM each dealership represents. This webinar will cover the following:   

  • Common Sourcing that will aid cross-store comparisons and communication 
  • How to set up Standard Reporting and criteria to help manage results, regardless of OEM 
  • How to review and adjust Source Accounting to keep critical Asset Accounts in line 
  • How to employ common measurements and terms to avoid cross-brand confusion and disputes
Maryland Automobile Dealers Association
7 State Circle, Suite 301
Annapolis, MD 21401
(800) 526.7423 (Toll-free)
(410) 269.1549 (Fax)

www.mdauto.org
Join Our Mailing List
In This Issue
5th Annual MADAF Gala
Five Scholarships Awarded in 2014
Free Health Care Reform Webinar
IRS Announces Increased 2015 Benefits
Labor Law Posters Require Updates
MD MVA Announces New Electronic Safety Inspections
2015 Fuel Economy Guides Available
DealersEdge Webinars Announced
Electronic Enclosures

MADA Calendar of Events
January 1-4, 2015
Motor Trend International Auto Show-Baltimore
Baltimore, MD

January 20, 2015
Annual Membership Meeting & Legislative Reception
Annapolis, MD

January 22-25, 2015
NADA/ATD Convention & Expo
San Francisco, CA

January 23, 2015
MADA / VADA / WANADA Reception
San Francisco, CA
Foundation Logo
Like us on Facebook  
Follow us on Twitter
Interested in advertising in our quarterly publication, In Gear?

Please contact Don F. Brown with Media Communications for more information: 813.423.1429 or
In Gear Logo