Last night the N.C. House approved by a 72-47 margin its second vote on the House budget plan. The budget bill is expected to receive its third and final vote of approval later today. From there, the budget bill will move to the Senate who will make adjustments and develop their own proposal.
Buried beneath the budget headlines, however, is a flurry of tax-related bills that were filed. Taxpayers should be paying attention to these bills, which include:
- HB 879 – this would created a new 8.5% tax bracket for married filers earning more than $1 million, and individuals earning more than $800,000
- HB 881 – this bill would exempt manufacturing companies from the state franchise tax, and also allow manufacturing companies to alter their tax liability formula in order to reduce their taxes owed
- HB 884 – this bill would extend the additional 1 cent statewide sales tax enacted two years ago, and scheduled to expire this July. It would amount to a tax increase of more than $1 billion
- HB 890 – this bill would extend the income tax surtax on the top level of income earners, approved two years ago and that had expired at the end of last year. The surtax means that income earners would pay 102% of their tax liability (for individual filers earning more than $60k and married filers earning more than $100k) or 103% for those earning more than $150k (individual filers) and $250k (married filers)
- HB 893 – this bill exempts the first $50k of income of a “qualified business entity” from the individual tax rates. This would not apply to corporations