Taxes are always a hot topic for discussion, and in recent years North Carolina has made significant changes to its state taxes. But our state is one of only a few states having one particular kind of tax. What is it?
- It’s the capital stock tax, or in NC, known as the franchise tax
- A tax on the net worth of a corporation (assets minus liabilities); is unrelated to profits
- If a multi-state corporation, use a formula to apportion wealth to NC
- Only 16 states have this tax, and most are in the south
- Some states put a limit on the total payment; NC does not
- Last year collected $750 million
- Supporters say it is an important part of the tax system
- Opponents say it is a disincentive for companies to expand in NC
The Economic Perspective is an NC State Extension program from the Department of Agricultural and Resource Economics.