MACHINERY TAX BILL

Paul Fogleman,
Rep. Chris Malone(R)

Rep. Chris Malone(R)

Rep. Chris Malone(R) of Wake County is poised to push the bill that will exempt manufacturers from sales or excise taxes on new manufacturing equipment. We are committed to working with him on behalf of textiles and hosiery manufacturers. The current tax is 1 percent on equipment and generates $12 million revenue to the state—a tiny bit of a $23 billion budget.

This year the crafting of a legislative version of the 2017-18 budget begins in the Senate under the leadership of Senators Kathy Harrington of Gaston County, Harry Brown of Onslow County, and Brent Jackson of Duplin County. Sen. Jerry Tillman of Randolph is a senior chair of the Senate Finance Committee and has supported past efforts to eliminate the tax. Sen. Robert Rucho who fought removal of the machinery tax did not seek re-election.

Gov. Roy Cooper also is required to submit a budget to the General Assembly. But as was the case with Gov. McCrory, the document is not expected to influence legislative leaders.

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