Governor Pat McCrory has signed a bill that will eliminate the privilege taxes municipalities can levy on businesses. On Thursday, the state House passed the Senate version of a far-reaching tax bill, which would completely eliminate privilege taxes beginning in July of 2015.
Normally, a bill that has been altered in both chambers would go to a conference committee, where lawmakers could hash out their differences and agree on a final version. But not this time, says Rep. Paul Luebke:
"It is wrong to have a bill come back not go to a conference committee where we can debate the question of whether the cities should be able to have $100 per business or nothing per business as the Senate did. It's wrong not to go to conference committee," says Luebke.
However, Rep. Julia Howard, the bill's primary sponsor, says she is hopeful that there can be negotiations on some kind of a tiered privilege tax system before the change would go into effect in 2015. In a statement, Governor McCrory says he has asked Howard and Senator Bill Rabon to work with local governments to find a solution. The measure will also levy taxes on e-cigarettes.