The Senate amended the House Budget Bill which includes new sales tax on services. Taxes will now be charged to the following services: Advertising, veterinary and pet care services, and car repairs and maintenance. Also, another amendment was made that will no longer allow Hospitals and other large nonprofits to be sales tax exempt.
Personal Income tax has decreased from 5.75% to 5.5% starting in 2016. However, the standard deduction allowable will be increased over the next 4 years.
The House Budget Bill includes a new formula called the single sales factor formula that will be used to calculate corporate taxes. The formula will be used to calculate tax liability based solely on the sales rather than including the company’s payroll and property value.
Sales tax will be distributed to other counties based on each counties population. Small counties will benefit the most from this change. Mecklenburg County alone will see a decrease of 7.4% in sales tax revenues. Some smaller counties will see a 100% increase.
The Job Development Investment Grant Incentives program has been out of money for quite some time. The new bill has included between $15-30 million dollars to be spend on bringing new jobs.