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On the Move - February 3, 2017
MADA/VADA/WANADA Reception at NADA Convention 
Members from MADA, VADA and W ANADA enjoyed their time at the annual joint Reception during the NADA Convention which was hosted Saturday, January 28th at Latrobe's on Royal in New Orleans. 

 Located in the heart of the French Quarter, Latrobe's original stonework and authentic architecture provided a fantastic atmosphere. Guests enjoyed a variety of delicious food and drinks throughout the evening. 
Back: Matt Hargrove, Katie Hargrove (Plaza Ford)
Front: Lynn Kitzmiller, Sharon Walls, Tom Walls (Plaza Ford)

We wish to thank those sponsors whos e generous support made this event possible and we alw ays remind our members to please consider those who support your Association!   

Chesapeake Petroleum
JM&A Group
RWL Rifkin Weiner Livingston LLC
Charapp & Weiss LLP
Cox Automotive
MADA Member Paul Ritchie Named AIADA Chairman
MADA is proud to announce that dealer Paul Ritchie, Hagerstown Honda, will serve as the American International Automobile Dealers Association Chairman for 2017. Ritchie was introduced as the new Chairman last week the AIADA Annual Meeting in New Orleans, Louisiana. 
After accepting the position Ritchie said,  "My job is to preserve the American dream for dealers and en sure that it is available for future generations. That means working with everything we have in Washington, D.C. to promote de aler interests, protect global trade, and fight back against the devastating border adjustment tax."

Paul Ritchie has been a part of Maryland's automobile industry since 1976, opening Hagerstown Honda in 1990 followed by Hagerstown Kia in 1997. In 2013 he expanded into Pennsylvania, opening Altoona Honda. In the past, Paul served as Chairman of the MADA and was nominated for the TIME Dealer of the Year Award in 2009. In addition to running three successful dealerships, Ritchie also makes time for several community causes, including local educational programs, service organizations, and the local Chamber of Commerce.
MADAF Scholarships Available
The Maryland Automobile Dealers Association Foundation (MADAF) is now accepting applications for academic YEAR 2017-2018. Scholarship applicants should be enrolled at a community college, four year university or a non-degree post-secondary technical training program. Applicant should be sponsored by a MADA dealer member in good standing or have a dealer member as a co-sponsor. A full list of criteria can be found in the  application packet

Applications are due by March 31, 2017. For further information, please contact Ethel Biensach (800)526-7423 or  ebiensach@mdauto.org
Border Tax Will Hurt Auto Industry & Dealers
Republicans in Washington have proposed a border adjustment tax (BAT), reportedly as high as 20%, on all goods or services, including automobiles and auto parts, coming into the United States from all nations, even those with which we have existing trade agreements. The BAT is crucial to the whole Republican tax proposal, and would pay for many of its proposed corporate tax cuts.

The new tax would be devastating to both dealers and manufacturers, and not just international nameplates. Even the most American-made vehicle sold in the U.S. would be subject to a significant price increase because auto parts, many of which are made overseas, will be subject to the BAT.

Opponents say consumers would ultimately foot the bill for the new tax in the form of higher prices on vehicles. The increase in vehicle prices will force many consumers out of the market for a new vehicle and, as a result, vehicle demand will drop.
IRS Issues New ACA Reporting Guidlines
The Internal Revenue Service (IRS) recently issued an updated set of   Q&A responses  detailing how employers should comply with reporting required under the Patient Protection and Affordable Care Act (ACA). Large employers (as well as employers of any size that sponsor self-insured coverage) are required to issue Form 1095 statements to individuals by  March 2, 2017 , and must file a transmittal (Form 1094) together with copies of all 1095 forms by  February 28, 2017  (filing on paper) or  March 31, 2017  (filing electronically).

The updated Q&As emphasize that the IRS will begin sending notifications in early 2017 of potential employer penalties associated with the 2015 calendar year. Notifications for the 2016 calendar year will be sent later in 2017. Employers will have an opportunity to respond before penalties are assessed or a notice and demand for payment is made.

The Q&A addresses common questions from employers about how to report information on the coverage offered to employees. The information in the updated Q&A does not differ from existing guidance, but it does provide clarity on how to handle certain reporting situations, such as employees who waive coverage, and insurance offers to retired employees. 

American Fidelity provides in-depth information on a variety of healthcare topics at hcreducation.com
  • New Hires and Terminations
  • Use of Safe Harbors
  • COBRA Continuation Coverage
  • Post-Employment Coverage
  • Reporting Waivers of Coverage
Cadillac Modifies Pinnacle Incentive Program
Cadillac recently announced it is modifying portions of the Pinnacle Dealer-Incentive Program that starts in April. The changes will allow retailers to receive payments sooner and give them the ability to earn partial bonuses, even if they fall short of monthly sales targets. The company is also relaxing some of the standards it plans to make dealers meet, and will create an appeals process for those it claims are not in compliance with the Program's requirements. 

The changes announced at this time don't necessarily wipe away dealer's concerns or resolve significant legal issues, but it may make the program less objectionable to Cadillac dealers everywhere. 

Cadillac management has announced sales targets, and the bonuses for meeting them, will remain as originally planned, but dealers will now be able to earn partial bonuses when achieving at least 85% of their sales target. In addition, Cadillac executives did not rule out the possibility of additional tweaks to the program before it takes effect April 1, 2017. 

The new incentive program has raised concerns from many Cadillac dealers since it was announced about a year ago. Dealers are pleased to see the company's responsiveness to negative feedback, but still have serious concerns about the program.
Maryland Automobile Dealers Association
7 State Circle, Suite 301
Annapolis, MD 21401
(800) 526.7423 (Toll-free)
(410) 269.1549 (Fax)

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In This Issue
MADA Reception at NADA Convention
MD Dealer Named AIADA Chairman
Article Headline
Auto Industry Fights Border Tax
IRS Issues New ACA Reporting Guidelines
Cadillac Modifies Pinnacle Incentive Program

MADA Calendar 

Motor Trend International Baltimore Auto Show
February 9-12, 2017
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