McCrory signs tax changes into law

Posted May 29, 2014

— Hours after state lawmakers gave final approval Thursday to a package of adjustments to last year's sweeping tax reform measure, Gov. Pat McCrory signed the legislation into law.

"The provisions in this bill will continue to spur economic growth and development in our state and position North Carolina to lead the nation in job creation," McCrory said in a statement.

The state Senate adopted House Bill 1050 on a 38-7 vote Thursday morning, and the House added it to its afternoon calendar and voted 79-37 to concur with the Senate's version of the bill.

House Democrats questioned why the bill was being rushed through, saying they needed time to review the changes made by the Senate.

House Rules Chairman Tim Moore said the bill included a "time-sensitive matter" involving sales tax on rental properties during the upcoming U.S. Open Golf Tournament in Pinehurst, so it needed to be signed into law as quickly as possible.

"The bill has been thoroughly vetted," said Moore, R-Cleveland.

"It doesn’t do anything really harmful to the bill, and doesn’t have a great impact," Rep. Julia Howard, R-Davie, the chairwoman of the House Finance Committee, said of the Senate amendments.

Rep. Paul Luebke, D-Durham, disagreed with Howard's assessment of the bill, pointing to the impact on modular home buyers and municipal governments.

The House version of the tax bill exempted half the purchase price of a modular home from sales tax, while the Senate version applies sales tax to the full price. House members voted to cap the privilege license taxes that cities and counties levy on businesses at $100, while the Senate eliminates the tax on July 1, 2015.

"Our cities are losing even more," Luebke said. "It's wrong not to go to conference (committee). It's wrong to take it up right now."

Howard said modular home taxes would be addressed in the budget, and she said lawmakers might address the privilege license issue next year before they are phased out.

McCrory, a longtime mayor in Charlotte, said Howard and Senate Finance Committee Chairman Bill Rabon have promised him that something will be negotiated next year so cities don't take a financial hit from the loss of the privilege license tax. Some estimates say the losses could be as much as $45 million statewide.

"There’s no debate that the privilege tax has been applied inconsistently, creating confusion and expense for our businesses. Therefore, I support needed reform," he said.

House Minority Leader Larry Hall noted that House members had passed a separate bill dealing with sales tax on rental properties so that it could be fast-tracked and the main tax bill could be handled more deliberately. The Senate's decision to combine the two put the House "in a vise," he said.

"It appears we're being pushed up against the wall by the Senate again," said Hall, D-Durham.

The tax bill also includes an excise tax of 5 cents per milliliter on the liquid used in e-cigarettes.


This blog post is closed for comments.

Oldest First
View all
  • Atheistinafoxhole May 30, 2014

    View quoted thread

    Just because you weren't paying attention, doesn't mean it didn't happen.

  • Jack Jones May 30, 2014
    user avatar

    Unless you're "family or friends" of Tillis and McCrory, you'll be paying a lot more.

  • j9us May 30, 2014

    View quoted thread

    so there was a promise watch for Gov Perdue and Easley also? Yeah that's what I thought.

  • Earth Brooks May 30, 2014

    "Why was there on blow by blow coverage like this when the education lottery was forced through at midnight?"

    There was.

  • Matt Wood May 30, 2014
    user avatar

    View quoted thread

    Y'all are so clueless. There's a 'search' box at the top-right of this website. Just look for "lottery bill" and you'll find WRAL articles clear back to 1997, including tons from 2005 when the bill was passed. Funny how that selective memory works, eh?

  • Jackson Smith May 30, 2014
    user avatar

    We have been McCroried again. Kinda like being Nifonged. The dictionary should say we have been shafted(Can't used the real term or the WRAL folks will have a cow)

  • LuvsThePack May 30, 2014

    View quoted thread

    Do you really need to ask? Liberals were doing it at the time, and we have a liberal media picking and choosing what to report on.

  • j9us May 30, 2014

    Why was there on blow by blow coverage like this when the education lottery was forced through at midnight?

  • Ann Hackett May 30, 2014
    user avatar

    We can jab at each other on sites like this and let the madness continue or we can start voting we need people that will work for the people we also need term limits North Carolina is a great state its a shame we have elected officals bringing it down...VOTE 2014

  • miseem May 30, 2014

    Let's see. Last year the NCGA put a cap on the sales tax on yachts. This year, they refused to put any caps on sales of modular or mobile homes. While the cap on yachts is high, as a percentage of income and assets, I'd bet that that mobile home purchase takes a lot higher part of that buyers funds than the yacht buyer. That should tell you who the NCGA is looking out for.