Sales Tax

State Senate chamber
Dave DeWitt / WUNC

North Carolina cities and counties would be prohibited from being “sanctuaries” for people living in the country illegally, under a bill tentatively approved by the Senate on Thursday.
 
The plan would prohibit local governments from directing their police officers to not collect people’s immigration information and report it to federal authorities. Senate Republicans gave the initial nod in a largely party-line vote of 34 to 11. The House of Representatives would have to agree before sending the bill to the governor.
 

Photo: Jerome Bias of Mebane drtives a 2001 Volkswagen Jetta
Jorge Valencia

The North Carolina General Assembly approved a two-year budget that includes a plan to lower income and corporate taxes and create new service taxes. Top Republicans say these measures will help create an environment in which the state’s economy will grow, while some Democrats say it unfairly shifts economic burden from large corporations to middle- and low-income families.

The budget includes more than 20 pages outlining changes to North Carolina's tax system. Part of the plan:

Photo: NC Legislative building
Jorge Valencia

Leading state senators proposed a compromise plan Thursday that redistributes tax revenue and creates job incentives.

They say the measure simplifies the corporate income tax rate, and is similar to the model in neighboring states South Carolina, Virginia and Georgia.

Photo: Woman at a cash register
MIKI Yoshito via Flickr

Powerful members of the North Carolina Senate say they want to revamp how the state distributes sales taxes revenue to better favor economically struggling rural areas.

Local sales tax revenue would be distributed to counties across the state based on their population. Currently, 75 percent of local sales taxes stay in the county where they’re collected, and the remaining 25 percent is distributed statewide based on population.
 

Photo: A camera attached to a remote control airplane
Chris Goldberg / Flickr/Creative Commons

A series of laws passed by the General Assembly this summer will go into effect today, affecting areas of construction, pollution and privacy. The variety in legislation reflects the broad reach of the state House and Senate this year.

Coal Ash

Glenwood Elementary students
Chapel Hill-Carrboro City Schools

Wake commissioners voted Monday against a referendum that could have raised the county's sales tax by a quarter-cent to generate about $28 million to go toward public schools.

Some Wake Commissioners wanted to hold the vote because the General Assembly might limit their ability to raise sales taxes. Lawmakers want to cap the local sales tax rate to 2.5 percent. The measure would allow some of the large urban counties, including Wake, to bypass that requirement if they levy a quarter percent tax this November.

Sales Tax Holiday
waaytv.com

This weekend would normally be North Carolina’s Back-to-School Sales Tax Holiday.  But that ended last year.  The state Retail Merchants Association is asking business owners to track sales anyway.

The state legislature’s argument for doing away with the Back-to-School Sales Tax Holiday was it cost North Carolina $13 million dollars in lost sales tax revenue.

But supporters of the popular sales tax holiday say consumers saved $13 million dollars.

Photo: A tobacco warehouse in Durham
Flickr

While General Assembly leaders are in the final stages of sending Gov. Pat McCrory a state budget, they're rushing to wrap up bills on taxes and economic development.

Republican and Democratic representatives grilled Commerce Secretary Sharon Decker on Wednesday, asking why the governor wants to create  a $20 million "closing fund" to bring business to North Carolina.

Photo: A sylo at a farm in Swannaona, NC
Flickr

North Carolina House and Senate leaders say they've finalized details for public school teacher pay raises and the state's budget, but lawmakers are rushing to tackle other issues ranging from sales taxes to farm pollution.

The Senate has already given its approval for the North Carolina Farm Act, and the House is giving it a closer look in its agriculture committee yesterday and its finance committee today.

Photo: A cash register
Luz Bratcher via Flickr

North Carolina's sales tax would be capped at 7.25 percent in most of the state under a plan tentatively approved by the Senate on Wednesday afternoon.

The proposal would make it easier for most counties to raise sales taxes to the limit. It would also pull back the ability some counties currently have to implement raises above that limit.

The purpose is to even out sales taxes and create fairness between populous and not-so populous areas, bill supporters say.  

Sen. Jerry Tillman (R-Randolph), says many people in rural places don't spend their money there.

Photo: Woman at a cash register
MIKI Yoshito via Flickr

A state Senate committee is recommending a plan that would curtail the ability of four of North Carolina's most populous counties, including Wake, to raise their local sales tax.

Walmart via Flickr

A North Carolina Senate committee is scheduled to vote Tuesday morning on a measure that would restrict how much counties can raise their sales taxes and what they can spend the revenue on.

The Senate finance committee approved last week a bill that would allow counties to raise their sales taxes by a half-percent -- and to use the new revenue for either schools or for transportation costs.

Gov. McCrory signs tax reform into law.
Dave DeWitt

The state’ sales tax holiday on appliances that are certified as energy efficient starts Friday, runs through Sunday and will be discontinued after this year.

The annual moratorium, on appliances such as clothes washers, dehumidifiers and air conditioning units marked with an "Energy Star” label, cost the state an estimated $12.5 million in uncollected taxes since it was implemented in 2008, according to the state Department of Revenue.