The North Carolina Retail Merchants Association, a nonprofit trade association, applauds the North Carolina General Assembly’s action to fix the business license tax inequity that has plagued job creators since the late 1990s.
We are grateful to Rep. William Brisson (D, Dublin) for his support of HB1050 “Omnibus Tax Law Changes” that will repeal the Privilege License Tax in North Carolina, effective July 2015. Originally intended to help local governments know who was doing business in their towns and cities, in recent years this business tax has instead become a revenue source.
The General Assembly has reigned in an archaic tax that was never envisioned to get to these levels and, in many cases, exceeded the municipality’s taxing authority by levying these taxes based on gross receipts with no regard to profit or services provided to the business.
Retailers pay property taxes, business license fees, trash collection fees and collect the sales tax for free. However, it is not practical for one industry to bear the burden of raising additional revenue for local budgets.
NCRMA’s 2,500 members, who employ one in four in our state, are glad to see this chapter on business license taxes come to an end and greatly appreciate the General Assembly’s efforts on this important business issue.