NC Senate Plan Expands Sales Tax Base Far And Wide

Senate Republicans have rolled out a tax plan in Raleigh that would subject almost all services to sales tax.

The tax overhaul proposal would make North Carolina's sales tax base one of the broadest in the country and subject nearly all consumer activities and products to the combined local and state rate.

Chamber leader Phil Berger says the change promotes fairness because everyone who spends pays the tax. The proposal also would lower income tax rates significantly and lower the combined sales tax rate slightly.

Some businesses worry the proposal will cause tax collection paperwork headaches. Nonprofits say they're worry it would affect their services because their sales tax exemption may be reduced or eliminated.