State Tax Overhaul Bill Headed To Governor's Desk


The North Carolina legislature has finalized its tax overhaul deal and now will send it to Gov. Pat McCrory's desk for his expected signature.

The Senate voted 32-17 Wednesday for a tax overhaul deal it worked out last weekend with McCrory and House GOP leaders. The House gave its final approval a couple of hours earlier. The initial round of legislative votes was held Tuesday.

McCrory already has publicly endorsed the bill, which would reduce individual and corporate income tax rates and adjust slightly which transactions are subject to the sales tax.

Once McCrory signs the bill, most changes will take place in January 2014 and July 2014, although the repeal of North Carolina's estate tax begins this year.

Some people we talked with in Eastern Carolina weren't too excited about some of the changes, like the tax on movie tickets.

Jessica Jones told us, "I think it's ridiculous. I think they're making it harder for middle class people that go to work everyday and make a living and we try to take our kids to do something fun, now they're putting a foot in the door for that too."

David Jolly told us, "I'm on a fixed income and anything with an increase in taxes, it takes away from my fixed income, which is budgeted up to here!"

Dr. James Kleckly with the ECU School of Business says he has concerns about the General Assembly's plan. He says, "I haven't seen any reported research on what they're doing."

Kleckley says while lowering taxes could put more money in the pockets of people, the expanded sales tax may deter people from spending as often. And as for Eastern Carolina his concern is if there will be enough tax revenue generated for necessary programs. He says, "We're a city in Greenville of education and health care and when you're putting caps on the education, we still don't know what the budget is going to be like for the university, when you're continuing cutting those things, which is really a long term investment in the people in NC, that's a concern."

(Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)


Previous Story

Tax law changes by the North Carolina legislature are now just one vote away from Gov. Pat McCrory's desk and his expected signature.

The Republican-led House voted 77-38 Wednesday for a tax overhaul deal it worked out last weekend with Senate GOP leaders and McCrory. The Senate was expected to vote for the last time later Wednesday.

Individual and corporate income tax rates would be reduced and the sales tax adjusted with in the bill.

Republicans label the bill a significant step in tax reform. Rep. Bert Jones of Reidsville says passing the measure helps him accomplish what constituents sent him to Raleigh to do.

Democrats like Rep. Ken Goodman of Rockingham say the bill is not tax reform and would hurt small businesses.

(Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)


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