Budget & Taxes (Sales Tax)

in committee · North Carolina · House Mar 31, 2025

HB 554: Revenue Laws Technical Changes/Bipartisan Budget Act of 2015 Changes/Peer-to-Peer Tax Parity.

HB 554 makes technical adjustments to North Carolina's tax code to align with federal rules and expand tax parity for peer-to-peer car rentals. It modifies how S corporation losses are deducted, restricts certain net operating loss deductions (like capital gains carryforwards), and updates estate/trust tax calculations. The bill specifically adds peer-to-peer car rental services to the alternate highway use tax, requiring them to pay the same tax as traditional rental companies. These changes affect individual taxpayers, S corporations, estates, trusts, and peer-to-peer car rental businesses, with most provisions effective for tax years beginning in 2025.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill closes tax loopholes by restricting net operating loss deductions and expands tax parity for peer-to-peer rentals, aligning with federal rules to strengthen tax collection.85% confidence

Sub-Topics Business Taxes Sales Tax

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in committee · North Carolina · House Apr 1, 2025

HB 582: Providing Relief to Impacted Families Act.

HB 582, titled "Providing Relief to Impacted Families Act," creates a quarterly tax refund program for specific nonprofits using motor fuel. It directly affects eligible organizations like volunteer fire departments, rescue squads, sheltered workshops (recognized by DHHS), and nonprofits distributing free food, by refunding the excise tax paid on fuel minus one cent per gallon. The key provision requires these nonprofits to claim refunds quarterly based on prior quarter purchases, reducing their operational costs. The bill does not address family relief as implied by its title but focuses solely on tax refunds for qualifying nonprofit entities. The measure is currently pending in the House Finance Committee.

Topics ✓ Budget & TaxesSupports Budget & TaxesRefunds excise tax for nonprofits serving vulnerable populations, providing direct tax relief to eligible organizations.95% confidence

Sub-Topics Sales Tax

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in committee · North Carolina · House Apr 1, 2025

HB 617: Supporting Small Farmers for NC's Future Act.

HB 617 creates a $20 million grant program for North Carolina small farmers with gross income under $300,000, funding equipment (like harvest machinery), infrastructure (such as fencing), and cold storage. It also lowers the income threshold for farm sales tax exemption from $10,000 to $7,500 annually, expanding eligibility for tax relief. The bill directly affects small farmers meeting these income criteria by providing financial support through grants and reduced tax burdens. Grants require applications and prioritize those facing economic hardship, with funding allocated for specific purposes like equipment and the FarmsSHARE program.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates $20M grant program for small farmers and lowers sales tax exemption threshold, providing direct fiscal support and tax relief for qualifying low-income farmers.95% confidence

Sub-Topics Sales Tax Tax Incentives

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in committee · North Carolina · House Apr 2, 2025

HB 630: Restore Local Education Agency Sales Tax Benefit.

HB 630 restores a sales tax refund program for North Carolina's public school districts. It allows local school administrative units to receive annual refunds for sales tax paid on direct purchases of tangible property and services (like supplies or equipment), excluding items such as electricity, telecom, or food. The refund amount is capped at $13.3 million per year for all districts combined. The bill takes effect July 1, 2025, and adjusts state funding to reflect the restored refund program.

Topics ✓ Budget & TaxesSupports Budget & TaxesRestores sales tax refunds for school districts, increasing education funding via tax relief and aligning with budget support for public services.95% confidence ✓ EducationSupports EducationRestores sales tax refunds for school districts, increasing direct funding for K-12 operational needs like supplies and equipment.95% confidence

Sub-Topics Business Taxes Sales Tax School Funding

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died · North Carolina · Senate Apr 7, 2025

SB 584: Local Govt Transportation System Financing.

SB 584 authorizes counties to use specific sales tax revenue to fund local public transportation systems - including buses, light rail, bike lanes, and transit facilities - while requiring these funds to supplement (not replace) existing transportation budgets. It defines "public transportation system" broadly to include infrastructure like bus lanes, shared-ride services, and integrated fare systems. The bill also creates a new metropolitan public transportation authority for counties with over 1 million residents that border another state and operate light rail systems, giving them regional planning powers under specific rules. This authority would manage funding and coordination for transportation projects within its jurisdiction.

Topics ✓ Budget & TaxesSupports Budget & TaxesAuthorizes use of existing sales tax revenue to fund public transportation systems, supplementing rather than replacing current budgets, directly utilizing tax funds for public service expansion.90% confidence ✓ TransportationSupports TransportationAuthorizes sales tax revenue for public transit infrastructure including buses, light rail, and bike lanes, supplementing existing budgets per bill summary.95% confidence

Sub-Topics Business Taxes Debt & Bonds Sales Tax Public Transit Rail Transportation Funding Tags Local Government

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in committee · North Carolina · House Apr 7, 2025

HB 755: Nonprofit Sales Tax Exemption.

HB 755 provides a sales tax exemption for qualifying North Carolina nonprofits, including hospitals, federally tax-exempt community organizations, volunteer fire departments, and university-affiliated groups. To qualify, nonprofits must obtain a state sales tax exemption number, with annual limits of $31.7 million for state tax and $13.3 million for local tax. The exemption covers most goods and services purchased for nonprofit activities but excludes electricity, telecommunications, alcohol, and certain other items. Real property contractors must provide documentation to retailers when buying materials for nonprofit projects to ensure proper tax treatment.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides sales tax exemption for qualifying nonprofits, reducing tax burden on public service entities like hospitals and fire departments.95% confidence

Sub-Topics Sales Tax Tax Incentives

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passed · North Carolina · House Apr 10, 2025

HB 143: Maysville Occupancy Tax.

HB 143 authorizes the Town of Maysville to impose a 6% occupancy tax on rental income from hotels, motels, and similar accommodations already subject to North Carolina's sales tax. This tax applies to all qualifying accommodations within Maysville and is collected separately from state and local sales taxes. Revenue from the tax must be sent quarterly to the Maysville Tourism Development Authority, which is required to use at least two-thirds of the funds for tourism promotion (like advertising and marketing) and the remainder for tourism-related expenses such as facility improvements. The bill also creates the Tourism Development Authority, requiring at least one-third of its members to represent tax-collecting businesses and half to be active in tourism promotion.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates 6% occupancy tax to fund tourism promotion via dedicated revenue stream, strengthening local fiscal management for tourism development.95% confidence

Sub-Topics Sales Tax

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in committee · North Carolina · House Apr 14, 2025

HB 954: Local Governments Disaster Fund.

HB 954 creates a State Critical Infrastructure and Construction Resiliency Fund to support disaster recovery and preparedness. It requires counties that experienced a Governor-declared Type I, II, or III disaster in the past three years to redirect 5% of their annual highway use tax revenue into the fund. The Governor can use these funds for new infrastructure projects and resiliency efforts in disaster-affected areas, as well as for state/local response activities following a federal disaster declaration under the Stafford Act. This directly affects eligible counties and their residents by providing dedicated resources for rebuilding and preventing future disaster impacts.

Topics ✓ Budget & TaxesSupports Budget & TaxesRedirects 5% of highway use tax revenue to disaster recovery fund, reallocating existing tax funds for essential resiliency programs under fiscal management.85% confidence ✗ TransportationOpposes TransportationRedirects highway use tax revenue (transportation-specific funding) to disaster fund, reducing resources for transportation infrastructure projects.95% confidence

Sub-Topics Revenue Sales Tax Roads & Highways Transportation Funding Tags Emergency Management

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in committee · North Carolina · House Apr 14, 2025

HB 884: Prepared Food Tax - Modification.

HB 884 increases the gross receipts threshold for artisanal bakeries to remain exempt from North Carolina's sales tax on prepared foods. Specifically, it raises the annual revenue limit from $1.8 million to $2.4 million (combined with related persons), while maintaining the requirement that bakeries derive over 80% of revenue from bakery items like bread, pastries, and cakes. This change directly affects small bakeries that previously exceeded the $1.8 million limit but now qualify for tax exemption under the new threshold. The bill modifies existing tax law (G.S. 105-164.13B) to expand the exemption to more small bakeries, effective October 1, 2025.

Topics ✓ Budget & TaxesSupports Budget & TaxesExpands tax exemption threshold for small bakeries, reducing their tax burden per bill's modification of sales tax rules.95% confidence

Sub-Topics Sales Tax Tax Incentives

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in committee · North Carolina · House Apr 14, 2025

HB 1005: Clarify Ballot Language for Article 46 Tax.

HB 1005 modifies the ballot language for a county sales tax referendum in North Carolina, clarifying the tax rate and its intended use. The bill changes the ballot question to specify a 0.25% sales tax (one penny per $4 spent) and explicitly states that proceeds will fund teacher and education employee pay raises, while exempting gas, groceries, motor vehicles, and prescription drugs. This change directly affects voters in counties holding referendums under Article 46 of Chapter 105, ensuring clearer communication about the tax’s scope and purpose. The bill does not alter the tax rate or funding rules but standardizes how the proposal is presented to voters.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill clarifies ballot language to direct 0.25% sales tax revenue toward teacher pay raises, explicitly advancing public education funding through targeted tax allocation.92% confidence ✓ EducationSupports EducationDirectly allocates clarified sales tax revenue to fund teacher and education employee pay raises, strengthening educator compensation and school funding.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentBill explicitly directs sales tax proceeds to fund teacher and education employee pay raises, directly advancing wages for public sector workers.95% confidence

Sub-Topics Sales Tax Teachers

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