North Carolina may see its final tax-free weekend in 2013.
According to WNCN, the Republicans’ tax reform package would eliminate tax-free weekends in North Carolina. The reform bill still needs approval by Governor Pat McCrory but it has already passed the House with a 77-38 vote and the Senate with a 32-17 vote.
Tax Reduction Act ( H.B. 998 ) contains a provision that would put an end to two tax-free weekends in North Carolina starting in 2014. The back-to-school sales tax holiday and the Energy Star tax holiday will be eliminated in 2014 once McCrory signs H.B. 998.
But that isn’t necessarily a bad thing. According to the office of Senate President Pro Tem Phil Berger, the Tax Reduction Act will reduce the personal income tax to a point where tax free weekends are no longer needed.
Berger’s office said in a statement: (The Tax Reduction Act) more than offsets one-time savings from things like weekend sales tax holidays… Our plan reduces the state personal income tax significantly, which means everyone will have more money in their pockets day-to-day.”
The Department of Revenue reports that North Carolina lost more than $13 million during the back-to-school tax holiday last year. Retailers, on the other hand, enjoy the tax-free weekends because it is the biggest shopping events outside of Black Friday.
What do you think of tax-free weekends? Do you think the Tax Reduction Act does more good than harm?
People in North Carolina will still be able to get some tax-free school items from August 2-4 this year .