N.C. Drops Plan to Cap Sales-Tax Refunds for Nonprofits
July 16, 2013 | Read Time: 1 minute
North Carolina lawmakers have brokered a major tax-reform deal that effectively removes a proposed limit on how much of their annual sales-tax payments nonprofit groups can recoup, the Winston-Salem Journal reports.
The agreement announced Monday, which cuts the state’s personal and corporate income-tax rates, sets a yearly cap of $45-million on sales-tax refunds, essentially guaranteeing no organizations will be affected, says Republican Rep. Julia Howard.
The North Carolina Senate had sought a much stricter limit for the currently uncapped refunds, which can run into the tens of millions of dollars a year for big nonprofit hospitals. The House version of the tax plan included no cap, and nonprofit hospitals vigorously lobbied against the sales-tax provision.
