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?

1. It’s the capital stock tax, or in NC, known as the franchise tax
2. A tax on the net worth of a corporation (assets minus liabilities); is unrelated to profits
3. If a multi-state corporation, use a formula to apportion wealth to NC
4. Only 16 states have this tax, and most are in the south
5. Some states put a limit on the total payment; NC does not
6. Last year collected $750 million
7. Supporters say it is an important part of the tax system
8. 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.