News

Bill that would cost city $300,000 advances

By Bill Moss, Published: May 29, 2014

A bill that would cost the city of Hendersonville up to $300,000 in tax revenue advanced in the state Senate on Wednesday.

The Senate voted 37-9 for a bill that would eliminate privilege taxes on businesses, effective July 1, 2015.

State Sen. Tom Apodaca said that the Senate's action, however, actually preserves the business tax as it's currently structured for one more year. Last year the Legislature included repeal of the privilege tax in a larger tax reform package. The Senate's action, he said, essentially puts off the decision until the 2015 legislative session, when legislative leaders and the League of Municipalities are expected to negotiate a compromise.

More than 300 cities and towns across North Carolina levy an annual privilege tax, generating $60 million a year statewide, a legislative analysis said.

If the city of Hendersonville took a $300,000 revenue hit, it would have to find cuts to offset the loss or raise the property tax or fees. A penny's worth of property tax in Hendersonville generates about $150,000.