Categories: Estate and Gift Tax Service, Raleigh CPA Firm, Tax Services
Governor McCrory signed one of the most sweeping NC state tax overhauls in years into law Tuesday.
The changes will go into effect in 2014. The law cuts personal and corporate income taxes to the lowest levels of neighboring states. It also limits future state spending by more than $2 billion in the next five years.
Some key provisions include:
- Creates a flat tax of 5.8% in 2014 (5.75% in 2015) for individuals
- Corporate tax rate decreased to 6% in 2014 (5% in 2015)
- Increases the standard deduction
- Limits the mortgage and property tax deductions
- Ends several personal exemptions
- Eliminates the sales tax holiday
- Expands sales tax on such tems as movie tickets, some service contracts and electricity.
The “devil is in the details.” Langdon & Company LLP will stay abreast of the effects of the new legislation. Please contact our tax professionals for specific questions at [email protected].