North Carolina

New North Carolina Budget Features Income Tax Relief, Universal School Choice, More Taxpayer Safeguards

Published

1 year ago

September 21, 2023

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New North Carolina Budget Features Income Tax Relief, Universal School Choice, More Taxpayer Safeguards

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Official text of the new two-year state budget agreement reached between North Carolina House and Senate leaders was officially released Wednesday, September 20. The budget deal includes tax relief that will, if enacted, allow households and small businesses to keep more of their income, along with provisions aimed at safeguarding North Carolinians against new taxes and regulations proposed at the local level. A floor vote on the deal will occur later in the week.

The North Carolina budget agreement would speed up the already codified drawdown of North Carolina’s personal income tax, which fell from 4.99% to 4.75% at the start of 2023, bringing the rate down to 3.99% at the end of 2025, one year ahead of schedule. The budget would also implement annual revenue triggers over the next decade that, if met, could bring North Carolina’s income tax as low as 2.49%.

Getting the rate down to 2.49%, were that to occur, would give North Carolina the nation’s lowest flat income tax, a distinction now held by Arizona, where legislators have their eyes on further cuts to their 2.5% rate that took effect the same day North Carolina’s 4.75% rate kicked in. North Carolina’s corporate income tax, now the lowest in the nation at 2.25%, is already scheduled for full phaseout by the end of this decade as part of the last budget signed into law by Governor Roy Cooper (D) in November 2021.

The new budget agreement also extends the sales tax exemption for jet fuel. In doing so, North Carolina legislators are demonstrating a continued commitment to avoiding taxation of business inputs. Jet fuel is exempt from sales tax in North Carolina, Georgia, and other states for the same reasons that business software purchases and other inputs are not included in the sales tax base. Taxation of business inputs leads to a phenomenon referred to as “tax pyramiding,” resulting in higher and more opaque tax burdens on the end consumer.

Aside from tax rate changes, the budget agreement would also protect North Carolinians from the threat of locally-imposed taxes and prohibitions on plastic bags, cups, containers, and other materials. Democrats are criticizing that reform, with Representative Lindsey Prather (D) describing it to the Asheville Citizen-Times as “overreaching and micromanaging our local governments from Raleigh.” Proponents of that provision, however, contend it stops overreaching and micromanaging on the part of local politicians and that it would protect all North Carolinians from locally-imposed taxes, prohibitions, and other costly regulations.

In addition to tax reform that could give North Carolina the lowest flat income tax in the U.S., the budget agreement would also make North Carolina the ninth state to offer families a universal school choice program, joining Arizona, Arkansas, Florida, Indiana, Iowa, Ohio, Utah, and West Virginia. The budget agreement accomplishes this by lifting the income cap for the state’s Opportunity Scholarship Program, making all North Carolina families eligible for education vouchers that allow parents to choose the school best suited to their child’s needs. More than 19,000 children across North Carolina now utilize the program. The value of the education voucher will decline as household income rises, bottoming out at 40% of the full $6,492 voucher.

Leadership in the North Carolina House and Senate decided to remove additional casino authorization from the budget. Doing so addresses concerns held by some legislators. “I appreciate leadership placing these two issues into a separate bill, allowing our members the freedom to vote according to their conscience without having to vote against the budget,” Representative Neal Jackson (R) told the Carolina Journal’s Donna King.

North Carolina’s Automatic Continuing Resolution Seen As Model That Should Be Applied At Federal Level

The fiscal year in North Carolina ended June 30. Thanks to a state law enacted in 2016, if a new budget is not in place by the end of the fiscal year then the state continues operating at the previous year’s spending levels. Some believe North Carolina’s automatic continuing resolution, which has put an end to shutdown politics in North Carolina and increases leverage for the side favoring less spending, is a reform that members of Congress should consider for the federal budget process. Bipartisan legislation to implement a federal automatic continuing resolution has been introduced by Senators James Lankford (R-Okla.) and Maggie Hassan (D-N.H.).

A decade ago North Carolina had a progressive income tax with a top rate of 7.75%, which had been as high as 8.75%, while the corporate rate was 6.9%. Now, after a decade featuring multiple rounds of tax reform, the state has a flat income tax scheduled to go below 4% and a corporate tax on track to be eliminated entirely. North Carolina has been one of the fastest growing states for more than a decade, which is why the state gained a congressional seat following the last reapportionment. Proponents of this budget agreement believe it will make North Carolina an even more attractive destination than it already is to live, work, raise a family, do business, and invest.

“A decade after North Carolina kicked off the flat tax revolution that has since swept the country, North Carolina lawmakers continue to lead by example, demonstrating for all what pro-growth tax reform looks like,” said Grover Norquist, president of Americans for Tax Reform. “10 years ago North Carolina was home to the least competitive personal and corporate income tax rates in its region. Now the state has one of the lowest flat income taxes and is on track to be the third state with no corporate income tax. It’s amazing how much has changed since Bev Perdue was raising income taxes, sales taxes, excise taxes, and other taxes only 14 years ago.”

The North Carolina House and Senate are expected to vote on this budget agreement before the end of the week. Were Governor Cooper to veto this budget, Republicans in both chambers of the General Assembly have the supermajorities needed to override his veto without any help from Democrats.

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North Carolina

Effingham local plans fundraiser for Helene victims in North Carolina

Published

5 hours ago

November 2, 2024

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Effingham local plans fundraiser for Helene victims in North Carolina

SAVANNAH, Ga. (WTOC) – It’s been just over a month since states across the southeast were hit by hurricane Helene, including Georgia. One of the hardest hits states, however, was North Carolina.

A woman from Effingham has been doing her best to help those in need by gathering supplies and taking them to storm torn areas.

WTOC spoke with the Georgia local to learn more about the work she’s been doing.

Our team originally spoke with Angela Miller before she made her first trip up to North Carolina after the hurricane. Since then, her and her family have made two trips to cities like Swanannoa. Their third trip is already planned for next weekend.

Miller immediately began collecting donations for storm victims, and she took a huge load to North Carolina the first weekend after Helene passed through.

Miller says during both trips she‘s made so far, the communities’ perseverance was inspiring.

“You know, you just don’t understand how these people just can smile and give you a hug and then turn around and walk into their house and there’s no electricity. They have no food. You know, they can’t get out of their house because they can’t go further if they don’t have somebody to help them,” said Miller. “The pictures just don’t do it justice. I mean it just like you know, oh well that’s kind of what happened. No, it’s split houses in half.”

The group of volunteers that Miller was with passed out over 500 meals to those still in the area.

To help gather more supplies for storm victims, they’re throwing a fundraiser at a local restaurant in Savannah.

A friend of Miller’s who works at Midtown Bar and Grill on Habersham reached out wanting to help the people in North Carolina.

The restaurant will be open and accepting donations today beginning at 2:30 p.m.

Miller has lists of what items people can bring on Facebook, including gift cards to Lowes or Home Depot for material supplies to help rebuild in areas that were completely destroyed.

Miller says the outpouring of support from her own Georgia community has been a blessing.

“You know we had our own devastation in Georgia, and I have been very, very blessed and very just overwhelmed with the amount of help that people, I mean, I have had donation, donation…The community is good,” said Miller.

All the donations collected during the fundraiser will be loaded up and taken with Miller on her next trip to Swanannoa.

Amy Moore, who owns Simply Southern in Springfield, will also be making the trip with Miller to pass out meals to those in need.

If you’re not able to make it out to Midtown Bar and Grill but would still like to make a donation, Miller says you can reach out to her anytime.

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North Carolina

East Carteret HS donating football ticket sales to Western North Carolina

Published

16 hours ago

November 1, 2024

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East Carteret HS donating football ticket sales to Western North Carolina

CARTERET COUNTY, N.C. (WITN) – As flag twirlers rehearse for Friday’s senior night football match against Southside High School, East Carteret High School is also preparing for a great cause.

100% of Friday night’s ticket sales will be donated to support Buncombe County Schools, which were severely impacted by Hurricane Helene.

East Carteret High School Cheer Captain and Student Body President Savannah Tyndall expressed her gratitude for the support they received during previous hurricanes and the tragic plane crash in 2022.

Now it’s their turn to give back, she says.

“We can’t pay back these families or these kids education that they lost…but we can give them the funding to try to rebuild and help in whatever ways they need,” says Tyndall.

East Carteret High School Principal Jay Westbrook says everyone was excited when they decided to donate the funds to Buncombe County.

He says he knew what to do when he called Buncombe County’s school superintendent.

“So I reached out to Dr. Jackson and it was a Saturday morning and I could tell there was a tremendous need of help because I know him very well,” says Westbrook.

Dr. Rob Jackson is no stranger to East Carteret High because he used to be the Carteret County School superintendent before moving back home to Buncombe County and becoming the superintendent there.

Westbrook says he wanted to help out as much as he could for a friend who helped him during previous tragic events.

Dr. Jackson says he is more than grateful to see the outpour of support for an area hit hard.

“Donations through our education foundation allows us to meet the needs of our students and their families and our staff members that have lost a home, a car, or where floods occurred and where many literally lost everything,” says Dr. Jackson.

Westbrook says East Carteret High School is mainly collecting monetary funds so they can be distributed to where it’s needed the most.

Tickets for the game are $8.00 each. Donations will also be accepted at the entry gate.

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North Carolina

Several North Carolina state parks reopening after Helene

Published

1 day ago

November 1, 2024

Press Room

Several North Carolina state parks reopening after Helene

CHARLOTTE, N.C. (AXIOS) – Multiple state parks across western North Carolina were reopening, at least partially, on Nov. 1.

State parks west of I-77 have been closed for weeks due to Hurricane Helene.

Why it matters: State parks are a major draw to western North Carolina. They provide miles of hiking trails for visitors to explore, especially during the fall as people travel to witness leaves change color.

State of play: Crowders Mountain, Gorges, Grandfather Mountain and Lake Norman state parks, plus Rendezvous Mountain will reopen on Nov. 1, the Division of Parks and Recreation announced Wednesday.

What to expect: Keep in mind, some state parks may only be partially open and others remain closed due to hazardous trees and branches, unsteady bridges and washed-out trails. Here’s what to expect at parks reopening Friday:

Crowders Mountain State Park

Trails and day-use from 8 a.m.-6 p.m. will reopen. Camping, however, remains closed through November.

Look for the Charlotte skyline on a clear day.

Distance: 45 minutes from Charlotte; 3 hours 18 minutes from Raleigh

Crowders Mountain(Ashley Mahoney/Axios)

Charlotte skyline view from Crowders Mountain.(Ashley Mahoney/Axios)

Gorges State Park

Grassy Ridge access at 976 Grassy Ridge Road, Sapphire, North Carolina will reopen, including the visitor center, trails to Rainbow and Upper Bearwallow Falls, plus RV, trailer, tent camping and cabins.

The backcountry area, including Frozen Creek access, Auger Hole and Canebrake trails, plus backcountry campsites, will remain closed.

Distance: 3 hours from Charlotte; 5 hours from Raleigh

Grandfather Mountain State Park

Most trails and campsites here will reopen. Profile trail, Profile Connector trail and Profile campsite, however, will remain closed

Distance: 2 hours 15 minutes from Charlotte; 3 hours 40 minutes from Raleigh

Lake Norman State Park

Day-use, tent, trailer, RV and campsites will reopen.

Cabins are closed to new reservations, but existing reservations will be honored.
Some mountain bike trail sections may be closed.
Distance: 50 minutes from Charlotte; 2.5 hours from Raleigh

Rendezvous Mountain

All areas of Rendezvous Mountain (1956 Rendezvous Mountain Road, Purlear, North Carolina) will reopen.

Distance: 1 hour 50 minutes from Charlotte; 2 hours 48 minutes from Raleigh

Parks that remain closed:

Zoom in: Chimney Rock, Mount Mitchell and South Mountains are expected to be closed longer than others. Campsite reservations at state parks that are closed or expect to be closed at the time of the reservation have been refunded, per the Division of Parks and Recreation.

What’s next: Some parks may partially reopen in November, according to State Parks Director Brian Strong.

What they’re saying: “We know our visitors have been missing our closed parks, and we hope these reopenings will help our neighbors, local towns, and communities,” Strong said in a statement.

This story from Axios Charlotte was published as part of a partnership.

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