Senate leaders say their bill would expand sales taxes to many services as well as prescription drugs. Income taxes rates would drop, but some families would end up paying more in taxes.
A Senate tax reform proposal would also shift franchise taxes away from payroll and property and toward sales. Sen. Rucho says a complete tax overhaul bill is still two weeks away.
Republican legislators have vowed to overhaul North Carolina's tax system this session, and the prospect of applying the sales tax to more things is already generating opposition.
A piece of the state Senate's tax reform package unveiled Wednesday would eliminate local and state privilege taxes in favor of a franchise tax system. Cities would not be able to charge the new tax.
A tax reform bill written by a longtime Democratic lawmakers is getting praise from Republican leaders.