RALEIGH, NC (WECT) – Governor Pat McCrory signed HB998 into law on Tuesday, fulfilling one of the promises made during his campaign. The Tax Simplification and Reduction Act was negotiated by leaders of the state House and Senate less than two weeks ago.
"I came to the governor's office a few short months ago with a sense of urgency and resolve to put North Carolinians back to work," said Governor McCrory during the signing ceremony, which was attended by leaders of the House and Senate, along with members of his administration. "I firmly believe that this reform package will prove to be critically important to growing North Carolina's economy and getting people back to work. This tax reform package puts more money in families' budgets and will restore confidence for North Carolina businesses. Because of this package, job creators will think about relocating to our great state."
Here are the highlights of the tax reform bill, according to a release sent by the Governor's Office:
Personal Income Tax:
-Reduces and simplifies the 3-tiered state personal income tax from the current maximum rate of 7.75% and minimum rate of 6% to 5.8% in 2014 and 5.75% in 2015.
-Increases the standard deduction for all taxpayers, applied to the:
-First $15,000 of income for those married filing jointly
-First $12,000 of income for heads of household
-First $7,500 of income for single filers;
-Retains the state child tax credit and increases it for families making less than $40,000;
-Offers a $20,000 combined maximum deduction for mortgage interest and property taxes;
-Makes charitable contributions fully deductible;
-Protects all Social Security income from state taxes.
Corporate Income Tax:
-Reduces the corporate income tax from 6.9% to 6% in 2014 and then to 5% in 2015 a 29% rate reduction.
-If the state meets revenue targets (i.e. if there is additional tax revenue growth due to a growing economy), the corporate income tax will drop to 4% in 2016 and 3% in 2017.
-Caps the state gas tax;
-Eliminates North Carolina's death tax;
-Preserves the sales tax refund for nonprofits.
"For decades, North Carolinians have languished under an archaic tax system that punished success and ignored the needs of a modern society," said House Speaker Thom Tillis. "Through those years, many have tried and failed to bring true reform to the system in a way that benefits every taxpayer. Today, we are accomplishing what others could not by signing into law a historic measure that will bring tax relief to our citizens and make our state more competitive for economic development and job creation. This is a great day for North Carolina."
Senate President Pro Tempore Phil Berger also attended the signing ceremony. "By enacting comprehensive tax reform, we have fulfilled our most important promise to the voters while making North Carolina a positive model for the rest of the nation," Berger said. "The Senate is proud to have worked alongside Gov. McCrory and the House of Representatives on a plan that makes our state competitive for 21st century jobs and returns more money to working families."
Friday, December 6 2013 1:52 PM EST2013-12-06 18:52:58 GMT
RALEIGH, N.C. (AP) - A lawsuit filed more than a decade ago against Attorney General Roy Cooper and his campaign for a television commercial aired during his first winning run for the job may finally goMore >>
A lawsuit dating back to 2000 against NC Attorney General Roy Cooper has received a trial date for spring of 2014.More >>
Thursday, December 5 2013 4:00 PM EST2013-12-05 21:00:12 GMT
WASHINGTON, DC (WECT) – The Senate Majority PAC group has launched a second ad campaign supporting Senator Kay Hagan in her bid for re-election. The 30-second ad on YouTube does not yet appear on theMore >>
The Senate Majority PAC has launched a new ad campaign, supporting Sen. Kay Hagan and criticizing the candidate many consider the front-runner to oppose her bid for re-election in 2014. Click on the link inside this story to see the ad.More >>
Wednesday, December 4 2013 4:53 PM EST2013-12-04 21:53:34 GMT
RALEIGH, N.C. (AP) - A judge has found North Carolina NAACP President William Barber and 11 others guilty of second-degree trespassing and violating building rules while protesting in April at the stateMore >>
A judge today found a dozen "Moral Monday" protestors, including the state NAACP President, guilty of trespassing for their demonstration at the General Assembly building in April. More >>
Wednesday, December 4 2013 4:03 PM EST2013-12-04 21:03:44 GMT
ELON, NC (WECT) – More people trust their local leaders to do what is right compared to state or federal politicians. That's one of the results of a new Elon University Poll released on Wednesday. AboutMore >>
More responders to a new Elon University Poll say they trust their local city council or county commissioners to do what is right than elected state or federal leaders. They also want to know the location of hazardous chemicals and expenses of government officials. Click on the link inside this story to see the raw data and summary.More >>
Tuesday, December 3 2013 7:53 PM EST2013-12-04 00:53:36 GMT
RALEIGH, N.C. (AP) - Gov. Pat McCrory says he wants to roll out a North Carolina public school teacher pay proposal early in 2014 but isn't talking specifics as his top education adviser, teachers andMore >>
Gov. Pat McCrory of North Carolina wants to get seek feedback on plans to address the issue of teacher pay in the state's public schools.More >>
322 Shipyard Boulevard
Wilmington, NC 28412
Main Phone Number: (910) 791-8070
Newsroom: (910) 791-6681