Estate Planning

NC House Finance Committee Proposes Tax Increases

By Gregory Herman-Giddens

Despite criticism from members of both parties, the North Carolina House of Representatives' Finance Committee approved a proposed tax package yesterday.  The proposal includes the following:

• Increase top income tax brackets to 8.25% and 8.5% (currently 7.75%)
• Raise the State sales tax from 6.75% to 7%
• Apply sales tax to repairs, warranties, installation, movies, athletic events, amusement events/activities, courier and delivery services, and internet sales.
• Require Limited Liability Companies to pay a franchise tax.
• Increase the liquor tax by 1.5%.

These and other increases would bring in an estimated additional $784 million in revenue for the next fiscal year.

Depressing to contemplate, indeed, but at least a 9 cent per six pack increase in the beer tax was defeated!  At 53 cents per gallon, North Carolina still has one of the highest beer taxes in the nation.  And that doesn't count the sales tax!

Full post as published by North Carolina Estate Planning Blog on June 10, 2009 (boomark / email).