Raleigh, N.C. – A reduction of the maximum income tax rate working families can be charged in North Carolina passed the state House of Representatives on Thursday and could be considered by voters in the November elections.
Senate Bill 75 Const. Amd. – Max. Income Tax Rate of 7% would lower the maximum income tax rate for families allowed by the state constitution from 10% to 7%.
The legislation also caps the state’s maximum corporate tax rate at 7%. The bill was returned to the state senate for final legislative approval.
“This puts on the ballot for all voters the chance to decide on a constitutional rate cap that would safeguard substantial tax relief and protect taxpayers from harmful rate increases,” said Rep. Jason Saine (R-Lincoln), a chairman of the House Finance Committee, during debate on the measure Wednesday.
Since 2011, North Carolina has a lower sales tax rate, income tax rate, and corporate tax rate under Republican leadership in the state General Assembly. The state has a record $2 billion savings reserve fund.