Following an event celebrating the historic tax reform that was enacted in July of 2013, Governor Pat McCrory released the following statement on Tax Day:
"Whether you are a police officer in Fayetteville, a teacher in Charlotte, a hospital nurse in Carteret County, or truck driver in Reidsville, many North Carolinians are seeing more money in their paychecks thanks to the historic tax reform we crafted and signed into law," said Governor McCrory. "Not only does this help working families across our state, it also puts North Carolina in a much more competitive position to attract new businesses."
Under the new tax reform law that was signed into law by Governor McCrory on July 23, 2013, the personal income tax rate was reduced and simplified from the previous maximum rate of 7.75 percent and minimum rate of 6 percent to 5.8 percent in 2014 and 5.75 percent in 2015. The corporate tax rate was also reduced from 6.9 percent to 6 percent in 2014 and then to 5 percent in 2015 a 29 percent rate reduction. If the state meets revenue targets, the corporate income tax will drop to 4 percent in 2016 and 3 percent in 2017.
"Businesses are relocating to North Carolina because of the changes we made in our tax code and that speaks for itself," continued Governor McCrory, who highlighted Lee Controls -- a New Jersey company that recently relocated to Brunswick County and cited tax reform as one of the major reasons for their move. "Ultimately, this is about North Carolinians keeping more of their hard earned money so they can buy, save and invest."
Other highlights of the historic tax reform law include a cap on the state gas tax and the elimination of North Carolina's death tax, which is highly beneficial to our important farming community.