April 15th has rolled around once again, the day that most people put off thinking about as long as possible, awaiting its arrival with an increasing sense of dread. But thanks to the continued phase in of the 2013 legislative tax overhaul, this hated day now gives many North Carolina taxpayers a few reasons to celebrate. This year, due to revenue triggers put in place with the passage of House Bill 998 in 2013, our state’s corporate and personal income tax rates dropped to 5.75 percent and 5 percent, respectively.
However, with research and development tax credits and other incentives set to expire at the end of 2015, it is critical that we maintain competitive corporate tax rates to ensure we hit future revenue targets and continue to improve our state’s tax climate. The NC Chamber currently supports multiple initiatives (H117, S338, S526) in the General Assembly that take steps to boost competitiveness in our tax code. Chief among these are the simplification and reduction of the franchise tax and the transition to single sales factor apportionment for businesses, which will allocate corporate income tax based solely on the portion of the corporation’s total sales that occur in the state.
Our competition is not standing still and that means North Carolina must remain vigilant on tax reform in order to continue growing jobs. We look forward to working with Governor McCrory and leaders in the General Assembly to build on the positive momentum of 2013 and ensure that North Carolina taxpayers can begin marking April 15th on their calendars with a sense of relief rather than anxiety.
Gary J. Salamido
Vice President, Government Affairs
North Carolina Chamber