One of the Chamber’s top legislative priorities for 2013 is
tax modernization for North Carolina. You can see the Chamber’s position
statement on tax modernization here.
The NC General Assembly continued work on tax modernization
this week with work on several bills. The first bit of action occurred early in
the week as Senate Finance debated SB363-Business
Tax Reductions & Reforms. The legislation would repeal the existing
corporate franchise tax and replace it with a state business privilege tax,
which would be paid by all business with limited liability. The legislation
would require LLC’s to pay the new privilege tax at a rate of $1.35 per $1,000
of the entity’s net worth tax base. The bill would also eliminate the state and
local privilege taxes, which has been a major concern for the City of
Asheville.
The theme of tax modernization continued on Wednesday with
two pieces of legislation being introduced in the Senate. The first bill
introduced was SB669.
This bill would work to decrease the personal income tax rate in North Carolina
to 4% by 2016. However, it has been said that this bill is merely a placeholder
and that more sweeping changes can be expected in the next couple of days. The Chamber
will make sure to keep you up-to-date on any changes introduced in the bill.
Finally, SB677
was also introduced on Wednesday in an attempt to address North Carolina’s
corporate income tax. The bill aims at reducing NC’s corporate income tax to 6%
by 2015. This legislation will begin its path through committees next Tuesday.
The Chamber will continue to watch as changes are expected
to be made to the legislation to address the taxation of services.
Please contact the Chamber with any questions or concerns on the topic at jjoyce@ashevillechamber.org.
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