| |
Source: N.C. PORK COUNCIL, 7/18/13
A long-awaited bill to reform NC's tax code has finally passed the legislature and awaits the governor's signature.
Highlights of the tax package include:
Personal Income Tax
· Reduces and simplifies the 3-tiered state personal income tax from the current maximum rate of 7.75% and minimum rate of 6% to 5.8% in 2014 and 5.75% in 2015.
· Increases the standard deduction for all taxpayers, applied to the:
· First $15,000 of income for those married filing jointly
· First $12,000 of income for heads of household
· First $7,500 of income for single filers;
· Retains the state child tax credit and increases it for families making less than $40,000;
· Offers a $20,000 combined maximum deduction for mortgage interest and property taxes;
· Makes charitable contributions fully deductible;
· Protects all Social Security income from state taxes.
Corporate Income Tax
· Reduces the corporate income tax from 6.9% to 6% in 2014 and then to 5% in 2015 - a 29% rate reduction.
· If the state meets revenue targets (i.e. if tax revenue grows due to a growing economy), the corporate income tax will drop to 4% in 2016 and 3% in 2017.
Agriculture Exemptions
A farmer who has an annual gross income of $10,000 or more in the preceding calendar year are eligible for the following tax exemptions (please note that only those exemptions relating to animal agriculture are included in the list below):
· Fuel and electricity that is measured by a separate meter or another separate device and used for a purpose other than preparing food, heating dwellings, and other household purposes.
· A container used in the planting, cultivating, harvesting, or curing of farm crops or in the production of dairy products, eggs, or animals or used in packaging and transporting the farmer's product for sale.
· A grain, feed, or soybean storage facility and parts and accessories attached to the facility.
· Remedies, vaccines, medications, litter materials, and feeds for animals.
· Semen
· Baby chicks and poults sold for commercial poultry or egg production.
· A commercially manufactured facility to be used for commercial purposes for housing, raising, or feeding animals.
· Building materials, supplies, fixtures, and equipment that become a part of and are used in the construction, repair, or improvement of an enclosure or a structure specifically designed, constructed, and used for housing, raising, or feeding animals.
|
