Budget & Taxes

passed · North Carolina · Senate May 27, 2025

SB 131: Temp. Local Sales Tax Changes/Buncombe Co.

SB 131 authorizes Buncombe County to use existing local sales tax proceeds (allocated by the state) for any public purpose, removing prior restrictions on how these funds could be spent. It directly affects Buncombe County residents and local projects funded through these taxes. The bill allows the county to redirect funds toward any public need - such as infrastructure, parks, or services - without specific project limitations. This temporary measure applies to tax proceeds allocated on or after July 1, 2025, through June 30, 2027. The bill is pending legislative action and does not create new taxes or alter tax rates.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill removes restrictions on using local sales tax proceeds for any public purpose, increasing budget flexibility for Buncombe County and enabling funding of various public services without prior limitations.85% confidence

Sub-Topics Sales Tax

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signed · North Carolina · House Jul 2, 2026

HB 332: Nash/Rocky Mount Occupancy Tax Changes.

HB 332 modifies Nash County's occupancy tax by allowing the county to add a 2% tax on top of the existing 3% tax for hotel/motel stays. This affects hotels, motels, and similar accommodations in Nash County (excluding nonprofits) and directs the new tax revenue to two entities: two-thirds to the Nash Tourism Development Authority for tourism promotion, and one-third to the City of Rocky Mount for approved tourism projects. The bill specifies that all funds must be spent exclusively on tourism-related activities like marketing, convention centers, or promoting travel within Nash County. It requires the county to first implement the base 3% tax before adding the additional 2% levy.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill explicitly increases occupancy tax rate and allocates new revenue to tourism development authorities, directly advancing tax collection and budget allocation mechanisms.95% confidence

Sub-Topics Revenue

died · North Carolina · Senate Jun 12, 2025

SB 349: Property Tax Modifications.

SB 349 modifies North Carolina's property tax relief program for elderly or disabled homeowners. It changes the income eligibility limit for the homestead exclusion to automatically adjust annually based on Social Security cost-of-living adjustments (rounded to $100), while eliminating the requirement to pay deferred taxes under the property tax homestead circuit breaker. The bill directly affects qualifying homeowners aged 65+ or permanently disabled who own and occupy their primary residence, as it removes the deferred tax liability that previously accrued during eligibility. This change simplifies the program by ending the process where deferred taxes became due upon disqualifying events like property transfer or loss of residency.

Topics ✓ Budget & TaxesSupports Budget & TaxesModifies property tax relief for elderly/disabled homeowners by adjusting income limits and eliminating deferred taxes, providing tax relief to qualifying residents.95% confidence

Sub-Topics Property Tax

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in committee · North Carolina · House Mar 13, 2025

HB 387: Eliminate Tax on Government Retirees.

HB 387 would exempt retirement income from North Carolina state income tax for retirees receiving payments from North Carolina state or local government retirement plans, or from federal government retirement plans (excluding certain federal plans covered elsewhere). The bill amends tax law to allow these retirees to deduct this income when calculating their taxable income, aligning with existing court rulings on the issue. This change would take effect for tax years beginning January 1, 2026.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts government retirees' income from state tax, providing tax relief per tax exemption subjects and aligning with court rulings on the issue.90% confidence

Sub-Topics Income Tax

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signed · North Carolina · Senate Jun 22, 2026

SB 695: Incent Development Finance District Funding.

SB 695, titled "Incent Development Finance District Funding," was introduced in 2025 but withdrawn from committee on April 28, 2025, without advancing further. The bill's title suggests it aimed to establish incentives for funding Development Finance Districts (DFDs), which are designated areas where local governments use special tax mechanisms to finance public improvements. However, no specific policy provisions or affected entities are described in the provided context, as the bill was withdrawn before committee action. Since it did not pass committee or receive a full legislative vote, no concrete policy changes were enacted.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill establishes tax incentives for Development Finance Districts (DFDs), directly addressing taxation to fund public improvements through special tax mechanisms.85% confidence

Sub-Topics Business Taxes Tax Incentives Tags Economic Development

died · North Carolina · House Jun 25, 2025

HB 348: Annexation of Present-Use Value Land/School Capacity.

HB 348 extends the period for carrying forward deferred property taxes on agricultural, horticultural, and forest land from three to six years. It creates local grant programs for counties and cities, using the excess tax funds generated by this change, to provide financial support to qualifying farmers for farm sustainability. The bill also requires cities to obtain county commission approval before annexing land classified under present-use value taxation. These provisions directly affect farmers who qualify for present-use value property taxation and local governments managing tax funds and annexation decisions.

Topics ✓ Budget & TaxesSupports Budget & TaxesExtends property tax deferral for agricultural land and uses generated tax revenue to fund farm sustainability grants, directly supporting farmers through tax relief and dedicated funding.95% confidence

Sub-Topics Business Taxes Property Tax

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died · North Carolina · House Jun 25, 2025

HB 14: Gambling Loss Tax Deduction, NC Sound Money Act.

HB 14 allows North Carolina taxpayers who itemize deductions to claim a state income tax deduction for gambling losses, aligning with federal tax treatment. It directly affects individual taxpayers who itemize deductions on their North Carolina state tax returns and have wagering losses exceeding winnings. The bill amends state tax code to explicitly permit deducting gambling losses under Section 165(d) of the federal tax code, subject to federal rules. This change takes effect for taxable years beginning January 1, 2024. The bill does not alter federal tax rules or affect taxpayers using the standard deduction.

Topics ✓ Budget & TaxesSupports Budget & TaxesAllows state tax deduction for gambling losses, reducing taxable income for eligible itemizers, aligning with federal tax treatment and providing tax relief.90% confidence

Sub-Topics Income Tax

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signed · North Carolina · House Jul 1, 2025

HB 378: Various Education Law/Tax Account/Name, Image, and Likeness Changes.

HB 378 requires North Carolina public schools to evaluate long-term technology costs - including repair expenses and resale value - when purchasing devices like computers and tablets. Schools must report annually on the "break/fix rate" (the percentage of devices malfunctioning or needing repair before their expected lifespan), total device counts, and repair costs to the State Board of Education. The State Board will compile these reports and provide an annual summary with recommendations to the legislature for reducing device repair rates. This bill directly affects all public school units, including charter schools, by adding these reporting requirements to existing education laws.

Topics ✓ Budget & TaxesSupports Budget & TaxesRequires schools to evaluate long-term tech costs and report repair rates, promoting fiscal responsibility in existing budget management.85% confidence

Sub-Topics Procurement

signed · North Carolina · House Jul 29, 2025

HB 402: Limit Rules With Substantial Financial Costs.

HB 402 requires North Carolina state agencies to assess the financial impact of proposed permanent rules. If a rule would cost affected individuals or businesses $20 million or more over five years, it must be approved by the General Assembly before taking effect. For rules with a $1 million or more annual cost impact, agencies must prepare a fiscal note for review by the Office of State Budget and Management. The bill also mandates a two-thirds vote by agency boards to adopt rules exceeding the $1 million cost threshold. This directly affects state agencies creating regulations and the businesses or residents who would bear the costs of those rules.

Topics ✓ Budget & TaxesSupports Budget & TaxesRequires fiscal impact assessments and legislative approval for costly rules, promoting fiscal responsibility in budget management.95% confidence

Sub-Topics Audits & Accountability Fees & Licensing State Budget

in committee · North Carolina · House Sep 23, 2025

HB 118: Disabled Veterans Tax Relief Bill.

HB 118 modifies North Carolina's property tax exemption for disabled veterans, replacing a flat $45,000 exclusion with a percentage-based system tied to the veteran's VA disability rating. It directly affects veterans with a 50% or higher service-connected disability rating (or surviving spouses under specific conditions), allowing them to exclude a portion of their home's appraised value from property taxes - equal to their disability percentage. For example, a veteran with a 70% disability rating would exclude 70% of their home's value from taxes. The bill takes effect for taxes due in 2025 and prohibits combining this relief with other property tax exemptions.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill modifies property tax exemption to provide tax relief for disabled veterans, reducing their tax burden through percentage-based exclusion based on disability rating.95% confidence ✓ HousingSupports HousingTax exemption reduces housing costs for disabled veterans, increasing affordability for a specific group within housing policy.85% confidence ✓ VeteransSupports VeteransReplaces flat $45k tax exclusion with percentage-based system (50%+ disability), increasing relief for disabled veterans, directly expanding benefits per bill summary and subjects.95% confidence

Sub-Topics Property Tax Tax Incentives Property Taxes Veteran Benefits Veteran Healthcare Veteran Housing

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