North Carolina House Approves Budget With Franchise Tax Relief

North Carolina’s House has approved a two-year budget plan that would ease franchise taxes on businesses.

• The measure (H.B. 966), approved May 3 by a vote of 61-51 along party lines, includes provisions that would require online marketplace facilitators to collect and remit sales taxes and would use market-based sourcing for apportioning multistate corporate income.
• The bill would also raise the standard personal income tax deduction.
• The legislation would set state spending for fiscal years 2019-2020 and 2020-2021 beginning July 1. It now heads to the state Senate.