RALEIGH, N.C. — Both houses of the North Carolina General Assembly passed House Bill 998 Tuesday. The bill is also known as the Tax Simplification and Reduction Act, and it’s the result of a compromise by the House, Senate, and Governor Pat McCrory.
In a press release, Senator Phil Berger said, “Today’s historic vote follows months of hard work and fulfills our most important promise to voters: enacting significant tax reform that makes us competitive for 21st century jobs and returns more money to North Carolina families.”
The bill would eliminate North Carolina’s three-tiered income tax code. Instead, every tax payer would pay a 5.8% income tax.
The bill would also lower corporate income taxes while adding new sales taxes on electricity and natural gas as well as movies and live performances, like concerts.