NC income tax cut signed into law
North Carolina's standard deduction will increase again next year, but more online purchases will be subject to an automatic sales tax.
Posted — UpdatedGov. Roy Cooper signed a bill Friday that increases the state's standard deduction, which will reduce most people's income taxes. The deduction will go from $20,000 to $21,500 for a married couple filing jointly and from $10,000 to $10,750 for a single person, starting with the 2020 tax year.
Senate Bill 557 will also require Amazon.com and other online retailers to charge sales tax on third-party transactions that they broker. Internet retailers generally already collect state sales tax on direct sales, but for many sales where the platform is merely a broker for someone else, the tax isn't collected.
Taxpayers are supposed to note how much they would have owed, though, and pay it with their income taxes. Many do not, and the state expects a revenue boost from the bill's sales tax portion.
Cooper said in a Friday afternoon press release that the bill he signed will help level the playing field between North Carolina retailers and out-of-state companies.
"When North Carolina cuts taxes, they should benefit middle-class and lower-income people, not corporations," he said in the statement.
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