Restructuring the code to lower tax rates and encourage investment in our state was a big step forward in the effort to recruit industry, and over the next year we will learn quite a bit more about the effects of the tax reform package, Lyons Gray, Secretary of Revenue for the state of North Carolina said in response to questions about whether the state expects to meet the revenue goals that would allow corporate income tax rates to be lowered even further as provided under the new legislation.
Gray’s comments were part of a larger interview in this week's issue of the Bloomberg BNA Weekly State Tax Report in which hespoke to Walt Nagel, Don Griswold, and Jeremy Abrams, all with Crowell and Moring's state tax team, about the revenue department's role in the legislative process, recently implemented tax reform, and the advantages of doing business in the Tar Heel State . The interview is part of Bloomberg BNA’s Crowell's Conversations series in which members of Crowell & Moring's state tax team meets regularly with state tax commissioners and their counsel to bring Bloomberg BNA's readers candid and timely observations from the country's top state tax decision-makers.
We're actually taking in a little less money because the tax rate was lowered for every taxpayer, Gray said. In order to flatten out the revenue picture they've expanded a number of items that are subject to sales tax, such as newspapers, admissions to certain events and things like that, he said.
We're headed toward a much more consumption-based tax structure, according to Gray.
That is, if you're going to use a service or buy an item, you will be participating in our tax process. Sales tax revenues, interestingly enough, are actually up a little bit, Gray said.
The complete interview withGray can be read here .
Continue the discussion on Bloomberg BNA’s State Tax group on LinkedIn : What are your thoughts on North Carolina’s shift towards a consumption-based tax structure?
For more information about this and other state tax issues, sign up for a free trial of the Bloomberg BNA Premier State Tax Library.
In other developments…
D.C. Council Approves Impressive Tax Reform , by the Tax Foundation
Capital Budgeting in the States , by the National Association of State Budget Officers
Compiled by Priya D. Nair
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