The NCGA Revenue Laws Study Committee met on Wednesday, May 12, 2020 at 10:00am.
The Committee began the discussion of this bill draft at its March Meeting.
The bill contains three parts:
- Relief to auctioneers and estate sale companies
- Expands scope of sales and use tax exemption for equipment purchased by a large fulfillment facility
- Clarifies sales tax on digital property
- Educational service by certain institutions whether live or recorded is not a taxable event
- Homeschool exemptions for sales of digital and audio works
- Pre-recorded or on demand webinars would be taxable, live/real time would remain non taxable
The fiscal note for this bill indicated that these changes would likely result in an insignificant revenue loss.
The bill draft was revised and received a favorable report.
The bill draft was presented by the NCGA Fiscal Research Division and the Legislative Analysis Division.
The draft incorporates the following:
- Consideration of tax changes enacted in the federal CARES Act on March 27, 2020 (new)
- Change the medical expense deduction from 10% to 7.5% fro the 2019 and 2020 tax years
- Loan forgiveness of a covered loan/Paycheck Protection Program
- Increase % of adjustable income limitation on the deduction of business interest from 40% to 50% for 2019 and 2020
- Decouples from income exclusion for forgiveness of debt on primary residence, mortgage insurance deductible as mortgage interest, and deduction for tuition and expenses
- IRC bill draft discussed at February and March meetings
- Two Technical and clarifying bill drafts discussed in the February and March meetings
- Extension of two sunset provisions discussed at the March meeting