It seems as thought the Republican leadership is wrestling with dissension within the ranks. The Senate pulled 41 House bills from its calender and sent them back to the clerk thus putting the bills in limbo. The House, in turn, decided not to hold full sessions during the week of the 4th. This wrangling is a result of the leadership not being able to reach a consensus on the tax reform plan. Consequently, the Governor has signed a continuing resolution to keep the state government running for another 30 days at 95 percent of its current funding level.
House and Senate GOP leaders are working with the governor’s office to
find a compromise plan to overhaul the state’s tax system and cut income
tax rates. The two plans have distinct differences and the Governor has his own thoughts as to what the final bill should contain. The Governor wants a revenue neutral plan, the Senate wants to cut taxes more than the House, so the stand off.
With the House decision not to meet full sessions next week, several other pieces of legislation are "hanging in the wind". What happens to them remains to be seen. The Senate wants to end the session quickly but the House has decided it would allow those working on a comprise to do so without a lot of distractions during the week of the 4th. Hopefully, we see positive developments next week. Stay tuned.
Friday, June 28, 2013
Wednesday, June 19, 2013
Tax Bill on Senate Calendar
H998 - Tax Simplification and Reduction Act is on the Senate Calender for today. This will be the third reading. There have been several amendments tacked on to the bill and I would imagine there will be attempts to attach other during the Senate hearings. It then will go to conference to iron out any differences with the House.
On the House side H.274 - Taxpayers Bill of Rights will be up for discussion in the Finance Committee. This bill will limit increases in the general fund budget, reform the budget process, establish and emergency reserve trust fund and amend the North Carolina constitution to establish a general fund expenditure limit. Let's watch and see what kind of amendments will be offered during the discussion.
Another bill that deserves watching is S.81- Charlotte Regional Airport Authority. As you know this bill will transfer the ownership of the airport from the City of Charlotte to a state appointed authority. I understand that Charlotte is still trying to short circuit this bill. It bears watching.
On the House side H.274 - Taxpayers Bill of Rights will be up for discussion in the Finance Committee. This bill will limit increases in the general fund budget, reform the budget process, establish and emergency reserve trust fund and amend the North Carolina constitution to establish a general fund expenditure limit. Let's watch and see what kind of amendments will be offered during the discussion.
Another bill that deserves watching is S.81- Charlotte Regional Airport Authority. As you know this bill will transfer the ownership of the airport from the City of Charlotte to a state appointed authority. I understand that Charlotte is still trying to short circuit this bill. It bears watching.
Thursday, June 13, 2013
Budget Bill Passes Second Reading
The Senate passed H.998 (click here to read the bill) on second reading this afternoon. This is the House version of the tax reform bill. It does not tax any additional services and proposes a flat tax.on income over $15,000. It lowers the corporate income tax beginning in 2014 to 4%. In 2016 the corporate income tax will go to 2%. I was able to listen to some of the Senate floor debate and it was very heated at times. The third reading will be next Tuesday. I expect the bill will pass the Senate and go to a conference committee. This bill is much different than the bill proposed by Senator Bob Rucho, who submitted his resignation today as chairman of the Senate Finance Committee. Senator Rucho is very frustrated that the Senate leadership watered down his proposals. It is a very interesting time in Raleigh. Stay tuned for more.
Tuesday, June 4, 2013
Time is Getting Short
The members of the General Assembly want to have a budget in place by the end of June - sooner if possible. For that to happen a lot of bills must move through both houses and a lot of conference committees must meet. H.998 was introduced in to the house today and it has several porposals of which you should aware. It sets the personal income tax rate at a flat 5.9%. It increases the standard deductions for everyone. It also does away with several other deductions and decouples from federal accelerated depreciation and expensing.
It lowers the corporate income tax to 6.9% beginning in 2014 and further decreased the corporate income tax to 5.4% by 2018.
A privilege tax of 4.75% is applied to all tickets sold for an entertainment event (concert, movie, museum, exhibit, athletic contest, etc.) as well as to service contracts.
If you want to get a feel for the proposal here is the link. H.998. I told the Kings Mountain Advisory Council today that things would move very fast in the state legislature. Buckle your seat belts and hang on. We are in a race to the finish. Let's see how it ends.
It lowers the corporate income tax to 6.9% beginning in 2014 and further decreased the corporate income tax to 5.4% by 2018.
A privilege tax of 4.75% is applied to all tickets sold for an entertainment event (concert, movie, museum, exhibit, athletic contest, etc.) as well as to service contracts.
If you want to get a feel for the proposal here is the link. H.998. I told the Kings Mountain Advisory Council today that things would move very fast in the state legislature. Buckle your seat belts and hang on. We are in a race to the finish. Let's see how it ends.
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