NC House Tax Package

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House Tentatively Approves Tax Package

Family Policy Facts - July 26, 2002
On Thursday, July 26, the State House gave its tentative approval to a plan that will raise over $320 million in new taxes. This plan, SB 1292—Budget Revenue Act of 2002, makes a number of changes to North Carolina’s tax laws including: accelerating the local governments ability to increase the local option sales tax by 1/2 cent on January 1, 2003; eliminating $333 million in reimbursements previously paid to local governments; repealing on January 1, 2003, the temporary 1/2 cent state sales tax added last year; delaying for one year the implementation of legislation passed last year to eliminate the marriage tax penalty and to raise the child tax credit to $100 per child; and closing a number of so-called corporate tax loopholes. This version of SB 1292 is a modified combination of two bills previously considered by the House, and earlier version of SB 1292 and HB 1633—Accelerate Local Option Sales Tax, which was defeated by the House on July 17. The final House vote on SB 1292 is expected on Monday night, July 29.