Vote Smart's Synopsis:

Vote to amend and pass a bill that reduces corporate income tax from 2.5% to 0% by 2028 and reduces other taxes.

Highlights:

• Authorizes the use of American Rescue Plan funding to provide economic support to businesses affected by COVID-19 (Sec. 1.1a).

• Establishes the Job Opportunity and Business Saving Grant Program to provide one-time grant awards to qualifying businesses (Sec. 1.1b).

• Specifies that the total American Rescue Plan funding granted may not exceed one billion dollars (Sec. 1.1d).

• Reduces the state income tax from 5.25% to 4.99% of a taxpayer’s North Carolina taxable income (Sec. 2A.1).

• Increases the child deduction amount for taxpayers allowed a federal child tax credit (Sec. 2A.3).

• Specifies that corporate income tax levels will be gradually reduced to 0% after 2027 (Sec. 2B.1).

• Limits franchise or privilege tax to less than $150,000, but not less than $200 (Sec. 2C.1).

• Establishes a tax of 2.25 cents per individual cigarette on the sale or possession for sale of cigarettes, to be paid by the licensed distributor responsible for the sale (Sec. 2F.1).

• Requires that cigarette distributors obtain a license for each location at which cigarettes are stored or distributed (Sec. 2F.1).

• Establishes an excise tax on the sale, use, consumption, handling, or distribution of tobacco products (Sec. 2F.1).

• Prohibits wholesale dealers from exchanging, selling, borrowing, or loaning tobacco products to one another (Sec. 105-113.6).

• Requires that wholesale and retail tobacco dealers obtain a license for each location at which they receive, store, or make tobacco products (Sec. 105-113.80).

• Specifies that the Secretary of Revenue must credit 6% of the net proceeds of the tax to the University Cancer Research Fund and the remainder to the General Fund (Sec. 105-113.83).

• Establishes a privilege tax of 4.75% on ​​short-term motor vehicle rentals by a peer-to-peer vehicle sharing facilitator (Sec. 2G.1).

• Requires that $500,000 be transferred from the General Fund to the Highway Fund within 75 days of the end of each fiscal year from 2021-2022 on (Sec. 2G.1).

Full Bill Text