House Lawmakers Tentatively Pass Broad Tax Bill

May 20, 2014

Credit NC General Assembly

State lawmakers in the House have tentatively passed a broad tax bill that would limit the power of local governments to tax businesses.The bill would also tax electronic cigarettes.

The bill limits the authority of cities and towns to levy privilege taxes on businesses. Critics say the taxes are unwieldy and should be streamlined, but many municipal officials aren't happy about the measure, saying they earn significant revenues from those taxes. They would be capped at a hundred dollars per year.

Another part of the bill includes taxes placed on e-cigarettes. The industry asked for e-cigarettes to be taxed at five cents per vial, and that's included in the bill. But Democratic opponents think that tax should be higher. And some think the matter of regulating e-cigarettes should be dealt with separately, rather than folding it in to a very large bill. A final vote is expected on Wednesday.