RALEIGH, NC (AP) -- The General Assembly is likely to debate legislation this session that would streamline local business taxes, even as some lawmakers and municipal lobbyists caution towns and cities could have to raise property taxes if it passed.
A tax study committee tentatively agreed Wednesday to recommend to the full legislature a repeal of business privilege license taxes levied by 300 municipalities in July 2015. It would be replaced with a tax capped at $100 per business location.
Bill supporters say current business tax law is disjointed and leads to abuses where cities charge thousands of dollars per business.
A legislative report estimates cities and towns could lose up to $25 million with the change. League of Municipalities Executive Director Paul Meyer urged lawmakers to locate other revenue sources for the difference.
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