Business Taxes

On Tax Day, The State of Things talks changes in North Carolina's tax laws.
Ken Teegarden / Flickr Creative Commons

Many North Carolinians are spending April 15 finishing up their income tax statements.

But others have already noticed a few surprises on their returns due to changes in the state tax code and subsidies from the Affordable Care Act. The revisions mean higher or lower tax bills for thousands of taxpayers.

The Oakwood Inn Bed and Breakfast in downtown Raleigh
Jorge Valencia

Raleigh council members are continuing to debate how to manage the growing number of homes whose owners are listing on sites such as for short term rentals.

In a report he presented at a council meeting Tuesday, Raleigh Planning Director Travis Crane said the rental listings could represent additional income for property owners and the city, but can generate additional traffic and a parking crunch in residential areas.

Power plant in Goldsboro, NC.


Private utilities charge their customers a small monthly fee to compensate for the corporate income tax they pay.

The North Carolina General Assembly cut that tax in its latest session, and the state Utilities Commission originally ordered a smaller fee to reflect the changes. But the commission recently reversed that, saying companies could go back to charging at the higher rate and keep the extra money.

Their decision led to a rare, strongly-worded dissent from the commissioners who voted against it.

Photo of corner of Trust and Belief from News and Observer's Contracted to Cheat series.

A yearlong investigative report by The News & Observer and The Charlotte Observer documents that North Carolina has lost nearly a half-billion dollars each year uncollected state and federal tax revenue from the misclassification of workers. 

A Carlie C's grocery store parking lot
Charlie C's

Some North Carolina lawmakers want to limit a tax cities can charge local businesses.

State lawmakers have been trying to resolve this for more than 10 years: A tax that businesses have to pay cities to set up shop there.

On Thursday, a committee sent a bill to the House of Representatives limiting the tax to $100.

But some cities say that cuts an important source of revenue. Charlotte, for instance, would lose more than $8 million.

Gov. Pat McCrory
NC Governor's Office

Governor Pat McCrory held a press conference today to celebrate a new report suggesting the state's economy is benefiting from tax cuts enacted last year.

The conservative American Legislative Exchange Council's "Rich States, Poor States" report ranks North Carolina sixth in the nation for its economic outlook.

McCrory says lowering corporate income taxes in particular has encouraged companies to move to the state.

A Carlie C's grocery store parking lot
Charlie C's

The legislative committee that reviews North Carolina’s tax laws debated on Monday a tax that cities and towns levy on businesses to allow them to operate within their municipality limits.

The tax, which state lawmakers have tried to change at least five times in the last 10 years, allows local governments to charge companies a flat rate or a percentage of their revenues. It includes retailers but exempts businesses such as insurance and law offices.

Small businesses in Brightleaf Square shopping center.
Laura Candler

It depends on what you consider good for business. If you head to the North Carolina Department of Commerce’s website, you can see many of the positive rankings North Carolina has received from business media outlets: No. 1 Best Business Climate from Site Selection in 2012, No. 4 Best State for Business by Forbes in 2012, No. 4 America’s Top States for Business by CNBC in 2012.  Most of the organizations doing the ranking look at a similar group of factors, although they each give those factors different weight in their decisions.

Lenovo Manufacturing
State of North Carolina

North Carolina Gov. Pat McCrory signed major tax reform legislation into law this week, keeping one of his most ardent campaign promises. 

The governor and his conservative Republican base have consistently said North Carolina would be better able to attract business to the state with lower taxes.