Pro-Jobs Tax Reforms Advance in Legislature

Last year, North Carolina passed the first comprehensive state tax reform since the 1930’s. House Bill 998 enacted historic reforms to North Carolina’s outdated tax system, dramatically improving the state’s competitiveness regionally and nationally, positioning our state to be a leading competitor for jobs! One of the key features, a reduction in corporate and personal income tax rates, marks real improvement for North Carolina’s job creators, both small and large.In order to maintain and strengthen this competitive position, our state’s tax policy must continue evolving to increase competitiveness, simplicity, efficiency, certainty and equity. Currently there is legislation moving through the General Assembly that includes priority issues for NC Chamber members that create tremendous simplification for employers.

In its current form, House Bill 1050: Omnibus Tax Law Changes would replace the net economic loss (NEL) with a State net loss (NOL) deduction that is more comparable to the federal net operating loss (NOL) calculation. Additionally, the bill would repeal the existing authority for cities to levy a privilege license tax on July 1, 2015. For the 2014-15 fiscal year, the Senate version would allow cities only to tax businesses physically located in the city. Currently, cities can tax businesses that operate in the city but don’t have a physical location there. Both of these provisions create more certainty and simplify the administrative burden for employers. While HB1050 has passed the Senate with bipartisan support, it is now sent back to the House for concurrence on amendments.

The North Carolina Chamber remains a consistent and strong advocate on behalf of the statewide business community to advance continued tax policy updates that increase your ability to create and retain jobs, while continuing to invest in the growth of our state. We will keep you update on the progress of this legislation.

Gary J. Salamido
Vice President, Government Affairs
North Carolina Chamber

Comments are closed.