Budget & Taxes (Sales Tax)

in committee · North Carolina · House Apr 29, 2026

HB 1065: Prepared Foods Sales Tax Modification.

This bill modifies North Carolina's sales tax rules to exempt most prepared foods from taxation starting October 1, 2026. It defines "prepared food" as items sold hot or mixed together by a retailer, while explicitly excluding raw ingredients, simple sliced foods, and products from large-scale food manufacturers. The change would remove the sales tax burden for many ready-to-eat meals and combinations sold in stores, but it preserves the tax on specific items like bakery goods from small artisan bakeries, soft drinks, and candy.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill exempts prepared foods from sales tax, reducing the tax burden on consumers and providing relief for lower-income households.85% confidence

Sub-Topics Sales Tax

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died · North Carolina · Senate Apr 29, 2026

SB 891: Small Business Investment Grant.

This North Carolina bill establishes a $250 million grant program to help small businesses recover from financial losses caused by the COVID-19 pandemic. To qualify, businesses must have had annual receipts of $8 million or less in 2019 and experienced at least a 25% drop in sales tax collections in 2020 compared to the previous year. Eligible recipients can receive a one-time payment of up to $250,000, which is capped at the amount of their verified sales tax reduction. The law requires businesses to remain open for at least six months after receiving the funds, with any unspent portion subject to repayment if operations cease prematurely.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill allocates $250M in grants to support small businesses, directly advancing the appropriations and budgeting topic.95% confidence

Sub-Topics Business Taxes Sales Tax Tags Small Business

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in committee · North Carolina · House Jun 30, 2026

HB 1213: Protect Taxpayers and Local Governments.

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill removes tax exemptions for data centers, closing a loophole to ensure they contribute to state revenue like other commercial entities.90% confidence ✗ TechnologyOpposes TechnologyBill removes tax exemptions for data centers, increasing operational costs and potentially hindering technology infrastructure growth.85% confidence

Sub-Topics Business Taxes Revenue Sales Tax

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passed · North Carolina · House May 18, 2026

HB 1019: Mike Clampitt 1st Responder Tax Fairness Act.

This bill, known as the Mike Clampitt 1st Responder Tax Fairness Act, aims to expand tax exemptions for volunteer fire departments and rescue squads in North Carolina. Specifically, it allows these independent groups, which have two or fewer paid employees and are already exempt from state income tax, to avoid paying a highway use tax on specific emergency vehicles like fire trucks, forest firefighting units, and other emergency service vehicles. The change applies to vehicles when a certificate of title is issued on or after July 1, 2026, ensuring these organizations can acquire necessary equipment without incurring this particular tax. By broadening the existing exemption, the legislation directly benefits volunteer responders who operate outside of local government units.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill expands tax exemptions for volunteer fire departments, providing fiscal relief and protecting essential emergency services funding.90% confidence ✓ TransportationSupports TransportationBill exempts emergency vehicles from highway use tax, reducing operational costs for fire and rescue services and supporting transportation infrastructure maintenance.85% confidence

Sub-Topics Income Tax Sales Tax Roads & Highways Vehicle Registration

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in committee · North Carolina · House May 4, 2026

HB 1181: Property Tax Modifications.

HB 1181 modifies North Carolina's property tax relief programs for seniors and disabled individuals by increasing the income limit for married couples and eliminating deferred tax liability under the homestead circuit breaker. The bill expands eligibility for the circuit breaker to include homeowners earning up to 70% of the area median income and introduces an alternative tax calculation for those who have owned their homes for at least 10 years. Additionally, the legislation appropriates funds to assist counties with property reappraisals and imposes an excise tax on the transfer of controlling interests in entities that hold real property interests.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill expands property tax relief for seniors and disabled individuals, increasing income limits and eliminating deferred tax liabilities to reduce the tax burden on vulnerable populations.95% confidence ✓ HousingSupports HousingBill expands property tax relief for seniors and disabled homeowners, increasing income limits and eliminating deferred tax liabilities to protect housing affordability.90% confidence

Sub-Topics Property Tax Sales Tax Property Taxes

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in committee · North Carolina · House Apr 22, 2026

HB 1032: Repeal Two Percent Local Grocery Tax.

This bill repeals the authority for North Carolina counties to collect a one percent local sales tax on groceries, effectively exempting food from these local taxes. By removing the option for voters to approve this specific tax, the legislation directly affects county governments and consumers who currently pay this surcharge on food purchases. The change applies to sales made on or after October 1, 2026, and does not alter the existing state sales tax rules.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill repeals a local grocery tax, providing tax relief to consumers and reducing the tax burden on essential food items.95% confidence

Sub-Topics Fees & Licensing Sales Tax

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in committee · North Carolina · Senate Apr 29, 2026

SB 860: Nonprofit Fundraising Sales Tax Exemption.

This bill expands sales tax exemptions in North Carolina for specific nonprofit organizations and adds a new exemption for diapers and incontinence underpads prescribed by Medicaid providers. It clarifies which types of nonprofits, such as hospitals and certain 501(c)(3) groups, qualify for tax-free purchases of goods and services needed for their operations, while explicitly excluding certain utility services and liquor. The legislation also establishes a formal application process requiring nonprofits to obtain an exemption number from the state and imposes liability for back taxes if the exemption number is misused. Additionally, the bill modifies ownership rules for property used by charities and sets annual dollar limits on the total tax exemptions and refunds available to eligible entities.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill expands sales tax exemptions for nonprofits and adds exemptions for essential hygiene products, directly reducing tax burdens and supporting fiscal relief.90% confidence ✓ HealthcareSupports HealthcareBill expands sales tax exemptions for nonprofits and specifically adds tax-free status for prescribed hygiene products like diapers and incontinence underpads, aiding patient access and reducing costs.85% confidence

Sub-Topics Sales Tax Tax Incentives Medicaid

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in committee · North Carolina · House May 4, 2026

HB 1165: Hygiene Products Protections/Sales Tax.

This bill exempts specific menstrual hygiene products from North Carolina's state sales tax and establishes a program to certify products that do not contain intentionally added PFAS chemicals. The legislation defines qualifying items as tampons, panty liners, menstrual cups, and sanitary napkins that have been verified as free of these substances through a certification process administered by the Department of Commerce. Manufacturers must apply for certification by providing evidence that their products meet established PFAS standards, and the Department can decertify products if they fail to comply or provide false information. To support the initial rollout of this certification program before permanent rules are finalized, the bill appropriates $100,000 to the Department of Revenue.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides tax relief by exempting essential hygiene products from sales tax, reducing the financial burden on consumers.85% confidence

Sub-Topics Sales Tax

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died · North Carolina · Senate Apr 30, 2026

SB 900: Small Business Investment Grant.

This North Carolina bill establishes the COVID-19 Small Business Recovery Program to provide financial assistance to small businesses that suffered significant economic losses due to the pandemic. To qualify, a business must have had annual receipts of $8 million or less in 2019 and experienced at least a 25% drop in sales tax collections in 2020 compared to 2019. The program offers one-time grants of up to $250,000, with the total funding capped at $250 million, and requires recipients to keep their operations running for six months to avoid having to repay a portion of the grant.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill allocates $250M in grants to small businesses, directly increasing funding for economic recovery programs.90% confidence

Sub-Topics Business Taxes Sales Tax Tags Small Business

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in committee · North Carolina · House May 5, 2026

HB 1183: Defend NC.

HB 1183, titled 'Defend NC,' prohibits North Carolina law enforcement agencies and officers from assisting U.S. Immigration and Customs Enforcement in arrests or serving removal warrants. The bill also directs state agencies to explore alternatives for health and education funding lost due to federal cuts and mandates a study to potentially create a new state health research institute. Additionally, it temporarily exempts certain tariff-affected goods from sales tax in 2026 and includes general statements of intent to protect Medicaid eligibility and uphold federal promises to North Carolinians.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides temporary sales tax exemptions for tariff-affected goods and directs agencies to find funding alternatives for federal cuts, protecting state revenue and services.85% confidence ✓ Criminal JusticeSupports Criminal JusticeBill restricts law enforcement assistance in immigration arrests, protecting civil rights and limiting federal overreach in criminal justice.85% confidence ✓ HealthcareSupports HealthcareBill mandates a study to create a new state health research institute and directs agencies to explore alternatives for health funding lost due to federal cuts.75% confidence ✓ ImmigrationSupports ImmigrationBill prohibits state law enforcement from assisting federal immigration arrests, directly limiting cooperation and protecting immigrant rights.95% confidence

Sub-Topics Sales Tax Law Enforcement Medicaid Enforcement Sanctuary Policies

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