September 30, 2015
The NC Legislature officially adjourned in the early morning hours of Wednesday, September 30. Several tax laws were enacted and go into effect immediately or in the coming months.
Most of the changes came in Session Law 2015-241, 2015 Appropriations Act (also known as the budget bill), which was signed by the Governor on September 18. We summarized key tax matters from that legislation in an earlier article.
Also, House Bill 117, NC Competes Act, passed both chambers and was presented to the Governor for signature on September 25. Tax-related provisions include:
Exempting dealer and manufacturer warranties from sales tax. Previous legislation provided that all service contracts and warranties for services performed on tangible personal property, including automobiles, was subject to the general sales tax. These warranties will be exempt starting March 1, 2016.
Requiring ALL employers to submit W-2 (or equivalent) information electronically to Department of Revenue by January 31 each year, starting with the 2015 year. This means that the first round of electronic filing will be due January 31, 2016. The Department of Revenue has started notifying employers of this requirement and has indicated they are currently working on updating their systems to facilitate this.
Additional changes were proposed in a variety of bills, but were not passed before the Legislature adjourned. Look for some of these issues to be taken up again next April when the General Assembly reconvenes:
Extending the research and development and renewable energy tax credits.
Expansion of sales tax to additional services.
Phasing out non-profit sales tax refunds.
Increasing the mill machinery tax rate (1%) and cap ($80).
Changes to how multi-state companies source and apportion their activity to NC.
Contact JPS if you want to learn more about NC tax legislation that passed during this most recent legislative session.
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Johnson Price Sprinkle PA is a leading certified public accounting firm in Western North Carolina, providing innovative solutions created specifically for small to mid-sized businesses. With a sixty year history, JPS has built its practice on providing superior accounting and exceptional service in taxation, business advisory and assurance to move clients forward by giving them the power of a national firm with the attention of a community-based one.