07/05/2006
Upcoming meetings
Area Action Council meetings are currently being scheduled in Asheville, Shelby, Charlotte, Greensboro, Raleigh, Rocky Mount, Fayetteville and Wilmington July 24–Aug. 25. Details will be posted soon! Check back and register for the meeting nearest you.
Topic: Legislative wrap-up by area legislators and Q&A.
Some small businesses to get health-care relief in budget
House and Senate negotiators worked long days and nights last week to pass the proposed $18.9 billion state budget but were unable to meet the June 30 Fiscal Year deadline. Final agreements were made on the eve of the deadline and the first reading of the budget was read on Friday, June 30. Lawmakers return to Raleigh today after a short holiday break to vote on the budget conference report.
Some small businesses in North Carolina are expected to see modest relief in the budget to be voted on today and tomorrow. The House budget originally provided a $200 health insurance tax credit for small businesses with 25 employees or fewer when those employers pay at least 50 percent of insurance costs. The proposal agreed upon will provide a $250 tax credit of $250, effective Jan. 1, 2007, including a study on the issue and a sunset on Jan. 1, 2009.
Because of the grassroots efforts of you, our NFIB members, this controversial provision survived the negotiations. The tax credit will help thousands of entrepreneurs, their families and employees to stay in the health-insurance market, a significant win for small business once enacted.
Tax relief is also in the proposed budget. The personal income tax rate will likely be reduced from 8.25 percent to 8 percent, which will benefit several thousand small businesses across the state. A reduction in the sales tax of one-quarter percent is also included in the proposal, which also caps the gas tax for one year. NFIB/North Carolina members were adamantly opposed to any increase in the gas tax, according to a late 2005 ballot, and were very vocal on this issue. State Director Gregg Thompson testified during the committee hearings in January, expressing the organization's position on the issue.
Both chambers have yet to settle the proposed increase of the minimum wage from $5.15 to $6.15. The Senate included the increase in their budget, while the House passed the increase as a standalone bill. Senate Leadership has reported they will take up the issue before adjournment.
Please visit the General Assembly Web page, which provides a list of budget conference committee members and the leadership of both chambers. If any of the above issues are important to you, please contact as many of the committee members as you can. Please thank the members for their assistance in the budget proposal and express to them your concern over the minimum wage increase.
National Small-Business Summit a success
Hundreds of small-business owners from across the country converged on our nation's Capitol to make their concerns about key issues known to their congressmen. The purpose of NFIB's Small-Business Summit's is to take the issues to the decision makers and to have a voice in Washington, D.C. Read full coverage of the Summit.
It's time to get political
The business community strives to help business-minded elected officials get elected to the legislative and executive branches of North Carolina government. North Carolina needs more elected officials who understand small-business challenges and how important small business is to our economy. John Davis of NCFREE notes that "not one candidate in the 2006 primary elections won on business issues."
NFIB will be involved in supporting business candidates for state and federal elections in November. Candidate endorsements and contributions will be made in late September and early October. NFIB/North Carolina is actively raising money that will support business candidates for public office. You can find election resources, including election information, endorsements, campaign news, voting records and more at www.NFIB.com/politics.
Congratulations!
One Hour Koretizing Cleaners in Rocky Mount, owned and operated by NFIB member Mary Wells, has been named the Rocky Mount Downtown Merchant of the Year presented by that city's chamber of commerce. Mary is an NFIB Leadership Council member who has been very active with NFIB for many years. One Hour Koretizing previously received the Chamber's Small Business of the Year award.
Great job, Mary! You make us proud!
Legislator profiles
Rep. Dewey Hill is president of Hill Food Stores Inc. and Home Run Food Marts. Hill attended the UNC School of Business and served in the U.S. Navy. He represents Brunswick and Columbus counties and is currently serving in his seventh term.
Rep. Hill serves as chairman of the Agriculture Committee and vice chairman of the Finance Committee. In addition, he serves on the House Select Committee on Home Foreclosures, and on the Public Utilities, Rules, Calendar and Operations, and Transportation committees.
He has a 2005 NCFREE cumulative legislator business rating of 84 percent. Mr. Hill is a strong advocate for small-business issues in the legislature.
Sen. Jerry Tillman represents Montgomery and Randolph counties and is currently in his second term. He is a retired school administrator with the Randolph County School system. He received an AB from Elon University and a master's degree in administration from UNC-Greensboro.
Sen. Tillman serves Select Committee on the Lottery Bill and on the Agriculture/Environment and Natural Resources, Appropriations/Base Budget, Education/Higher Education, Finance, Judiciary I, and Transportation committees.
He has a 2005 NCFREE cumulative legislator business rating of 81 percent.
Status of legislation
| Bill # | Short title | Status/Committee |
| HB 1802 | Reduce Motor Fuels Tax | Finance |
| HJR 1808 | Authorizing Resolution/Increase State Minimum Wage | Rules |
| HB 1838 | Raise State Minimum Wage | Rules |
| HB 1853 | Cap Variable Rate of Gasoline Excise Tax | Finance |
| HB 1854 | Eminent Domain | Rules |
| HB 1855 | Opposition to Eminent Domain Decision | Rules |
| HB 1915 | Streamlined Sales Tax Agreement | Ratified (SL. Ch. 2006-33) |
| HB 1949 | Eliminate "Temporary" Taxes | Finance |
| HB 1965 | Eminent Domain Restrictions | Senate Judiciary I |
| HB 2114 | Medical Malpractice Settlement Reports | Judiciary II |
| HB 2115 | Bifurcation of Medical Malpractice Trials | Judiciary II |
| HB 2159 | ONE NC Small Business Program/Funds | Appropriations |
| HB 2170 | Bill Lee Changes | Appropriations |
| HB 2172 | Reduce and Cap Gas Tax | Finance |
| HB 2174 | Raise Minimum Wage | Commerce |
| HB 2213 | Eminent Domain | Senate Rules |
| HB 2239 | Sunset Tax Increases Early | Finance |
| HB 2495 | Deduction for S Corporation Income | Finance |
| HB 2718 | Small Business Tax Exemption | Finance |
| HB 2844 | Work Opportunity Tax Credit | Finance |
| SB 1201 | Cap Variable Rate/Gasoline Excise Tax | Finance |
| SB 1222 | Restrict Eminent Domain | Rules |
| SB 1229 | Eminent Domain | Rules |
| SB 1447 | Cap Gas Tax Variable Tax | Finance |
| SB 1498 | Eliminate Upper Income Tax Bracket | Finance |
| SB 1499 | Repeal Estate and Gift Taxes Bracket | Finance |
| SB 1550 | Taxpayer and Citizen Protection Act | Finance |
| SB 1553 | Bill Lee Changes | Finance |
| SB 1610 | Sales Tax Expiration Modification | Finance |
| SB 1668 | ONE NC Small Business Program/Funds | Appropriations/Base |
| SB 1690 | Small Business Contractor Funds/Sunset | Appropriations/Base |
| SB 1771 | Raise Minimum Wage/Reduce Corporate Tax Rate | Finance |
| SB 1965 | Healthy NC | Appropriations/Base |
| SB 1889 | Work Opportunity Tax Credit | Finance |
| SB 1906 | Raise Minimum Wage/Earned Income Tax Credit | Finance |
| SB 1980 | Income Tax Rebate | Finance |
| SB 1999 | Adjust Individual Income Tax Brackets | Finance |
| SB 2006 | Economic Development Program Modifications | Finance |
Sincerely,
Gregg Thompson
NFIB/North Carolina State Director
