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White Water Rafting Site Recommendation Christopher Davis, Liquita James, and Susan Williams ACC/543 August 13, 2012 Linda Miller White Water Rafting Site Recommendation White water rafting is a new sport that has gained popularity in recent years. Because of this popularity the white water rafting business has expanded. Our client is interested in opening a white water rafting business. The client has three states in which they are interested in Alabama, Georgia, and Virginia.The client has requested that the accounting firm research to see which location would be best for their new rafting business. Research must be done of the legal ramifications of real property, personal property, business insurance and environmental issues and regulations for each location in order to make the site recommendation. Real Property and Personal Property Real Property is the land itself and any building, trees, soil, minerals, timbers, plants, and other things permanently affixed to the land.Land an d buildings are purchased and the owner may use, enjoy, and develop the property as he or she sees fit, subject to any applicable government regulation. Buildings that are constructed on the property are also real property. Personal property is tangible property such as equipment, vehicles, furniture, and jewelry, as well as intangible property such as securities, patents, trademarks, and copyrights. Determining if a mobile home can be used for the office on the new location is important to the client.Therefore we would need to know in each location if the mobile home is considered real property or personal property. In Toccoa Georgia real property can be purchased for around $150,000 for 2. 2 acres on the Toccoa River. Placing a mobile home on this land for the office would be considered real property in Georgia as long as the mobile home is titled to the same party that owns the land. The mobile home must be tied down and blocked in to be considered for commercial use.In Cahaba Ri ver City: Mountain Brook, Alabama the tax assessing official makes the differentiation between real property and personal property by considering the manner in which property is attached to or secured at the location and the purpose for which the property is used. Intangible personal property includes an owner’s representation of rights to property such as shares of stock, annuities, patents, market certificates, etc. Intangible personal property owned by businesses is not taxable under the property tax laws of this state.Business personal property is considered Class II property and is taxed at 20% of market value. Market value multiplied by twenty percent equals the assessment value, which is then multiplied by the appropriate jurisdiction’s millage rates to determine the amount of tax due. The State of Alabama publishes a personal property appraisal manual so that basic methods and procedures can be followed in the personal property appraisal process (â€Å"Persona l Property†, 2012). Land in Birmingham, Alabama is roughly around 45,000 an acre.Rappahannock River in Fredericksburg Virginia is a combination of rural and urban life. The river is located off a major highway  leading north and south of the area. It's it also located between  the capital Washington, D. C. and the capital of the state, Richmond. It's a great area for relaxing and family with  a country feel. There are major tourist’s sites such as  war battlefields,  art galleries and antique shops. The mobile home issue as an office would be considered real property in Virginia.Once the home or office t is off the truck and secured on the ground it is considered real property. Lots run from $120,000 up to $700,000. 00 Business Insurance It is also important that we research what each site location business insurance requirements are. Business Insurance will protect our client and their property from damages and any unforeseeable circumstances. For Georgia the following insurances are required for a white water rafting business in Toccoa; vehicle insurance, floater policy, on water liability, and workmen’s compensation.Vehicle insurance for the buses, vans and cars, with low premium rates are based on the seasonal nature of your business, with limits up to $5,000,000, plus Physical Damage coverage; MVR and driver selection program assistance, prompt issuance of ID cards and Certificates. Floater Policy for your rafting and canoeing equipment policies provide physical damage protection for your river equipment – Fire, theft, vandalism, collision, and much more are covered; Low rates make this an important part of your insurance protection program; Office computers and equipment can be included.On Water Liability is professional liability insurance consulting for whitewater rafting, canoe livery industries and outdoor adventure companies. New, lower minimum premiums for the smaller outfitter, along with a liability waiver des igned for you; Limits up to $5,000,000. . Finally Worker’s Compensation Offered in most states – Competitive rates. CBIZ offers professional liability insurance consulting for whitewater rafting, canoe livery industries and outdoor adventure companies.CBIZ is the Preferred Agent for the Paddle sports Industry Association. They offer liability coverage through four programs: K&K, Tudor Insurance (Sattler), the AO endorsed Great Outdoors Program (Gillingham) and Philadelphia Insurance. Additionally, they offer commercial auto through four programs in most states. With full-service professional liability insurance consulting for whitewater rafting, canoe livery industries and outdoor adventure companies from CBIZ, you’re protected while your customers enjoy their outdoor activities: 1.Vehicle Insurance: Stable markets for buses, vans, cars, and trucks; Low premium rates are based on the seasonal nature of your business; Limits up to $5,000,000, plus Physical Damage coverage; MVR and driver selection program assistance, prompt issuance of ID cards and Certificates. 2. Floater Policy for your rafting and canoeing equipment: These policies provide physical damage protection for your river equipment – Fire, theft, vandalism, collision, and much more are covered; Low rates make this an important part of your insurance protection program; Office computers and equipment can be included. . On Water Liability: Get professional liability insurance consulting for whitewater rafting, canoe livery industries and outdoor adventure companies. New, lower minimum premiums for the smaller outfitter, along with a liability waiver designed for you; Limits up to $5,000,000. 4. You also need Worker's Compensation (â€Å"Whitewater Rafting†, 2012). For Virginia liability insurance is required for rafting. Virginia requires that management must have at least three years management experience for acquire an insurance policy.There must be a General liabi lity minimum premium $2,500 for mountaineering experience and ropes courses General liability minimum premium $10,000 for equine exposures – General liability minimum premium $2,000 for water activities. As with Alabama CBIZ offers the most affordable insurance for the area and offers the same vehicle, floater, water liability and workman’s comp insurance. Environmental Issues and Regulations Environmental issues and regulations are important when deciding upon a site for our clients business.These issues and regulations can cause a major problem for our client. At the Toccoa Georgia site the environmental issues that are of concern are that the rivers are being polluted by businesses in the area. â€Å" Polluters can dump garbage into streams, developers can pave over wetlands to build strip malls, and the cops on the environmental beat can’t do a thing about it† I n April, the Environmental Protection Agency took the first major step in decades to prote ct Georgia’s rivers by setting new guidelines to prevent pollution from flowing into our waters. â€Å"Protect Our Rivers†, 2012) Fourteen Alabama environmental groups have officially filed a petition with Environmental Protection Agency (EPA) to withdraw Alabama's authority over the water pollution-permitting program because it does not meet the minimum requirements of the Clean Water Act (â€Å"Clean Water Network†, 2012). There are no ongoing environmental issues or regulations for Rappahannock River in Fredericksburg Virginia. Site Recommendation The site recommended for our client is the Alabama site.The insurance requirement is about the same for all three states. Therefore we need to look at the real property and environment to make our decision. The mobile home issue is that it can be used for commercial use in all three of the locations. The mobile home would be considered real property because it will be attached to the location. Land in Alabama is che aper so that makes it a better investment. Finally the environmental issues are about the same with those states having issues with polluted rivers. Alabama like other states is actively pursuing this issue.In conclusion, our client is trying to decide where would be the best location to open a new white water rafting business. First we found three ideal locations for the new business. Then after much research we looked at whether or not they could have a mobile home as an office and if this was real or personal property. Other issue that we looked into was the business insurance and environmental issues. This helped us to decide that the best location for our new white water rafting business was Cahaba River City: Mountain Brook, AL. References Clean Water Network (2012).Retrieved from http://www. cleanwaternetwork. org/news-events/news/clean-water-network-groups-call-epa-take-away-alabamas-authority-over-water-permitt Georgia. (2012). Retrieved from http://www. statues. Laws. com Georgia business license. (2012). Retrieved from http://www. ehow. com Personal Property (2012). Retrieved from http://www. ador. state. al. us/advalorem/sections/personalproperty. htm Protect our Rivers. (2012). Retrieved from http://www. environmentgeorgia. org Whitewater Rafting (2012). Retrieved from http://www. cbiz. com/page. asp? pid=6384