HB 1213 removes tax exemptions for data centers in North Carolina, meaning these facilities will no longer be exempt from state sales and use taxes. The bill directly affects data center operators and the businesses that purchase equipment for them, requiring them to pay applicable taxes on new purchases starting July 1, 2026. By repealing specific sections of state tax law, the legislation ensures that data centers contribute to state revenue in the same way other commercial entities do.
This bill establishes a new fund called the Contaminated Parks Remedial Account to help clean up environmental hazards in public parks across North Carolina. It directs money from taxes on trash disposal and corporate income to pay for assessing and fixing pre-1983 landfills or other inactive hazardous sites that make parks unusable. Local governments that own the affected parks must contribute one dollar for every four dollars provided by the state to share the cost of cleanup. The program is scheduled to begin in 2026, with funding amounts gradually increasing over time as more tax revenue is generated.
This bill, titled the Kids Over Corporations Act, would stop the scheduled elimination of the corporate income tax in North Carolina and instead set a permanent rate of five percent. It directly affects C corporations operating in the state by requiring them to pay this tax, while S corporations remain exempt from the levy. The law includes a temporary phase-in schedule where the tax rate starts at 2.25% in 2025 and gradually decreases to zero after 2029, though the bill's title suggests a permanent five percent rate. The legislation applies to taxable years beginning on or after January 1, 2026, and aims to ensure corporations contribute to public services funded by state revenue.
This bill expands the property tax exemption for disabled veterans and their surviving spouses in North Carolina by increasing the excluded home value from $45,000 to the entire appraised value of the primary residence. To offset the resulting loss in local tax revenue, the state will reimburse counties and cities for the taxes they no longer collect from these exempt properties. The legislation also allocates $100,000 to cover administrative costs and sets the changes to take effect for tax years beginning on or after July 1, 2027.
This bill establishes the "NC Workforce Stability & Economic Protection Act" to monitor how federal immigration enforcement affects North Carolina's economy and businesses. It requires the state budget office to conduct an annual study on the financial impact of these operations, including tax revenue losses and supply chain disruptions, and mandates that employers notify workers within 72 hours if they receive a federal audit notice. Additionally, the Attorney General is authorized to oversee enforcement activities, create a public reporting portal for grievances, and publish an annual report on the effects on civil rights and commerce. The legislation also allocates $100,000 to fund the initial economic impact study and includes penalties for employers who fail to provide the required employee notifications.
SB 350, the Marijuana Justice and Reinvestment Act, would legalize recreational cannabis for adults 21 and older in North Carolina, allowing possession of up to 2 ounces of cannabis, 15 grams of concentrate, or products containing no more than 2,000mg THC. It establishes a regulatory framework requiring licenses for cultivation, manufacturing, and retail sales, with mandatory lab testing, potency labeling, and restrictions on advertising. The bill directly affects North Carolina residents over 21, cannabis businesses, and communities disproportionately impacted by past cannabis prohibition - addressing the ACLU finding that Black individuals were 3.6 times more likely to be arrested for possession than white individuals despite similar usage rates. Key provisions include creating three funds to reinvest tax revenue into affected communities for substance abuse treatment, education, and business support, while requiring licensed businesses to prioritize diversity, fair wages, and community investment.
HB 413 would legalize recreational marijuana for adults 21 and older in North Carolina, allowing possession of up to 2 ounces, 15 grams of concentrate, or products with 2,000mg THC. It establishes new regulations for cannabis businesses (like retail stores and cultivation facilities), requires lab testing and responsible packaging, and mandates that businesses prioritize diversity and community investment. Crucially, it creates two funds to reinvest tax revenue: the Community Reinvestment and Repair Fund for historically impacted communities, and the Cannabis Enterprise Opportunity Fund to support minority-owned businesses. The bill directly affects consumers aged 21+, cannabis businesses, and communities disproportionately affected by past cannabis enforcement.
SB 145 proposes authorizing Mecklenburg County to levy an additional 0.5% sales tax for transportation funding, subject to voter approval. The bill requires that these funds supplement, not replace, existing transportation budgets and must be used exclusively for financing, building, operating, and maintaining public transportation systems within the county. It specifies that tax revenue must be distributed to Mecklenburg County and its public transportation authorities on a per capita basis, with strict rules against using funds for non-transportation purposes. The measure is currently pending in committee and would require a county referendum before implementation.
SB 73 authorizes the Town of Richlands to impose a 3% occupancy tax on hotel and short-term rental stays, in addition to existing state and local sales taxes. The tax revenue must be sent quarterly to the Richlands Tourism Development Authority, which is required to spend at least two-thirds promoting tourism (e.g., advertising, marketing) and the remainder on tourism-related projects like facility improvements. The bill also establishes the Tourism Development Authority with specific membership rules, including at least one-third of members from tourism businesses and half from tourism promotion roles. It mandates quarterly financial reports to the town council on how funds are allocated.
SB 706 restores funding for counties to address scrap tire disposal by increasing the portion of tax revenue allocated to local governments from 50% to 75%. It directs the Department of Environmental Quality to use these funds to grant counties assistance for cleaning up scrap tire disposal sites and managing tire-related waste, prioritizing areas with severe disposal problems and financial need. The bill requires counties to demonstrate higher disposal costs than prior tax reimbursements to qualify for grants and mandates annual reporting on fund usage. This directly affects North Carolina counties struggling with scrap tire accumulation, particularly those with limited resources for waste management.
