Call it the “NASCAR tax credit.” SB1215, “Economic Incentives Alignment & Changes,” is another piece of wish list economic incentives legislation that, among other things, refunds sales and use taxes to NASCAR teams while the citizens of North Carolina work to cover the budget deficit created by our spendthrift elected officials. Primarily sponsored by Rep. Clark Jenkins (D-Edgecombe), the bill has passed the Senate and is waiting on action in the House.
The bill would entitle motorsports teams (NASCAR teams) to a refund of the sales and use taxes paid on aviation fuel for the rest of 2010. Furthermore, the bill would allow a 50% refund on sales and use taxes paid on the purchase of motorsports accessory items such as paint until 2014. The NASCAR tax credit is especially egregious relative to the other tax credits in the bill.
North Carolinians pay the second highest gas tax in the Southeast. Florida, the only Southeastern state with a higher tax, does not levy income taxes on its citizens. While the state should be proud that it is home to so many NASCAR teams, granting those teams favored tax status (especially in the midst of the state’s current budget woes) is unacceptable. Perhaps the General Assembly should ease the tax burden on everyone instead of only on selected industries.