Soon after HB 1050 passed the House and the Senate, Gov. Pat McCrory signed the tax-reform bill into law.
The measure includes a provision that will help small businesses by repealing the authority of municipalities to charge a privilege license tax, effective July 1, 2015, said Gregg Thompson, state director of NFIB/North Carolina.
Today, over 300 cities in the state require businesses to pay a privilege tax, which is a tax paid for the "privilege" of doing business in city or town.
The tax rate varies from one city to another, but Thompson said repealing the privilege tax would be a welcome relief to small-business owners, saving them an estimated $62 million a year.