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North Carolina Legislative Report - July 3, 2013

July 1 - 3, 2013

The MVA Public Affairs Legislative Report on North Carolina will be distributed weekly to keep you up to date on the latest legislative issues facing the state while the North Carolina Legislature is in session.  

 

On the Floor

  • H 94 Amend Environmental Laws
    7/2/2013 Amendments Adopted, Passed 2nd Reading
  • H 476 Rewrite Underground Damage Prevention Act
    7/2/2013 Reported Favorable Committee Substitute, Committee Substitute Adopted, Re-referred to Committee on Finance
  • H 998 Tax Reduction Act
    7/2/2013 Amendment Adopted, Passed 2nd and 3rd Readings, Order  Engrossed

 

Committee Meetings

Senate Agriculture/Environment/Natural Resources Committee

The Senate Agriculture/Environment/Natural Resources Committee passed out two bills this week.  H 15, Various Emergency Management Changes, seeks to make various changes to the emergency management laws of this state.  H 321, Amend Local Solid Waste Planning, seeks to repeal the requirement that local governments develop and maintain a solid waste management plan. 

Senate Commerce Committee

On Tuesday, July 2, the Senate Commerce Committee met and approved five bills.  H474, Redeposit Gov't Funds Into Ins. Deposit Acct., would authorize local governments, community colleges, and the State Treasurer to invest idle funds in insured demand, money market, and NOW deposit accounts through a deposit placement service.  H476, Rewrite Underground Damage Prevention Act, would make substantial modifications to current State law with respect to notification and location of underground utilities.  H616, Transitional Mortgage Loan Originator, would allow for temporary transitional licensing for a certain type of mortgage loan originator who is either licensed in another state or registered in this State.  H761, Exempt Well K'ors/Electrical K'ors Lic Req, would exempt certain electrical work associated with wells from the requirements of the electrical contractor statute and would require new well contractors to have some education, experience, and knowledge of electrical work associated with wells.  H796, Exempt Certain Columbariums/Cemetery Act, would provide a temporary exemption from the Cemetery Act for a columbarium that is on the grounds of and funded by the residents of a private, self-contained retirement community in a county where no commercially available columbarium exists.

Tax Reform

Tax reform kicked back into high gear this week at the General Assembly.  On Monday, the Senate Finance Committee unveiled a new proposal with respect to comprehensive tax reform.  With a few minor changes, the bill that emerged from Committee was later approved by the full Senate on Tuesday and Wednesday.  The bill will now head back to the House.  While the bill appears to represent a middle ground between earlier Senate proposal and the bill approved in the House three weeks, there does not yet appear to be agreement between the two bodies - setting up the likelihood of a conference report.  Major components of the bill include:

 I. A reduction of the personal income tax rate with the maintenance of an
exemption for Social Security payments and some itemized deductions.

II. The creation of a business privilege tax that applies to all limited liability entities other than C corporations, coupled with the elimination of annual filing fees for these entities.

III. A reduction in the corporate franchise tax rate coupled with an increase in the statutory minimum amount of tax due.

IV. The extension of the low-income housing tax credit, but in a more restricted form.

V. The elimination of some sales and use tax exemptions.

VI. A cap on the amount of a sales and use tax refund available to a nonprofit entity.

VII. The imposition of a State sales and use tax at the rate of 7% on most sales of electricity and piped natural gas.  The exemptions for manufacturers and other entities are maintained.

VIII. The imposition of State and local sales and use tax on amusements and entertainment in lieu of current privilege taxes on these activities.

IX. The imposition of a State and local sales and use tax on service contracts.

X. The elimination of the estate tax.

XI. The elimination of earmarks of certain tax proceeds for specific purposes.

XII. The elimination of the discount on the cigarette and other tobacco products excise taxes.

 

In the News

  • AP: Senate puts tax reform back on the radar
  • Charlotte Observer: NC panel protests keeping secret on fracking
  • News&Observer: Congressional delegation split over offshore drilling
  • News&Observer: NC Senate race still ranks No.6
  • Charlotte Observer: Foxx: I worked my ‘tail off’ for Charlotte
  • AP: Senate gives tentative approval to tax cut
  • Winston-Salem Journal: Refund Cap could mean job cuts for Baptist

 

Legislative Calendar

Sunday, July 7, 2013

 7:00 PM       Session Convenes (Senate)                                      Senate

Tuesday, July 9, 2013

10:00 AM     Health and Human Services (House)                         544 LOB
                      LME/MCO Enrollee Grievances & Appeals. (S553)

12:00 PM     State and Local Government (Senate)                  1124/1224 L
                    Apex Land Use Changes. (H538)

12:00 PM     Transportation – CORRECTED (House)                     643LOB
                     Vintage Auto Inspections. (S344)
                    Omnibus County Legislation. (S372)
                    Registration of Petroleum Device Technicians.-AB (S454)
                    Clarify ATV Definition. (S501)
                    DOT/Oversight Standards for Greenways. (S653)

Wed., July 10, 2013

10:00 AM   Judiciary Subcommittee A (House)                      1228/1327 LB
                    Roofing Contractors/Consumer Protection. (H880)

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