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NC local business taxes capped in proposal

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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.

(Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

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Another shift

in business taxes.
Well, in THIS case if they do go to property taxes for revenues replacement they will be hurting other businesses - namely real estate and construction. The difference with this is as follows....
A stand alone business does pay taxes - especially the privilege taxes along with property taxes (if they own the property) and so on. The indirect spending caused by that business is limited to what employees spend
On the other hand, if we shift that burden to property ie real estate taxes then something else happens. Construction slows, carpet manufacturing slows, wood company's slow down, appliance manufacturing slows down as do all the building trades.
While I applaud the desire to reduce business and corporate taxes - the continued revenue shift to individuals and property owners will have a detrimental affect on other, more broad based companies.

Vog