RALEIGH, N.C. (AP) – North Carolina’s tax on a dead person’s financial assets would be repealed in legislation approved by House members who say the estate tax hurts family-owned farms.
The chamber gave tentative approval Tuesday to legislation ending the estate tax, which this year applies to estates that roughly exceed a little over $5 million. It’s higher for couples.
The 83-36 vote followed debate on whether the bill would help farmers trying to keep operations in the family when they die or just extremely wealthy people. General Assembly researchers say about 1 in 500 estates are subject to the tax.
Opponent Rep. Paul Luebke of Durham said the state shouldn’t give up the $50 million in revenues the state receives from the tax following recent social service cuts.
A final House vote is expected Wednesday.
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