After a few weeks of hectic activity with the House passing its budget and the flurry of bills for consideration and passage at the crossover deadline, the General Assembly returned to work this week at a much slower pace.
Although fewer committees met and votes occurred this week, the General Assembly did take up legislation addressing NCACC finance goals, including an Association priority goal. The House approved a bill providing counties local option sales tax flexibility, while the Senate approved a tax package that includes efforts to maximize remote sales tax collection for counties, including sales tax collection from third party online sellers.
NCACC expects the General Assembly to continue to work at a slightly slower pace over the next few weeks as the Senate prepares its budget proposal, with its release likely in late May or early June.
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House addresses top Association priority with passage of local sales tax legislation
Yesterday, the House passed House Bill 667 Local Option Sales Tax Flexibility, which accomplishes one of the Association’s top legislative goals – Support efforts to preserve and expand the existing local revenue base of counties and authorize local option revenue sources already given to any other jurisdiction to all counties.
Under the Article 46 current law, counties are authorized to levy a maximum of ¼ cent local sales tax, which voters must approve in a referendum. HB667 authorizes counties to levy the Article 46 local sales tax at either ¼ cent or ½ cent within current sales tax caps. Counties may use the tax for public school capital needs, teacher supplements, community college needs, or any public purpose. The ballot language must state the use as either “any public purpose” or “only public education purposes.” The bill maintains the voter referendum requirement.
NCACC thanks bill sponsors Reps. Julia Howard, Jason Saine, John Szoka, and Howard Hunter, a former Hertford County commissioner and past president of the Association. Thanks also to our members who contacted legislators on the House Finance Committee to share their support for the bill. H667 is now before the Senate for consideration, and we will keep county officials informed of its progress.
If you would like further information on this legislation, contact Government Relations Director Johanna Reese.
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Amendment adds requirements to local government finance officers
A Senate committee amended a House bill containing provisions affecting the Office of the State Auditor to also make changes to laws governing local finance officers. House Bill 233 State Auditor/Local Finance Officer Amends would authorize the Local Government Commission (LGC) to require a local government to contract with an outside entity to perform the duties of a finance officer if the government has received a unit letter or has an internal control finding. The bill also authorizes the LGC to establish minimum qualifications for finance officers and require training of a finance officer if the employing local government has an internal control material weakness or significant deficiency, or if the officer fails to meet minimum qualifications. The amendment would also strengthen the law requiring local governments to appoint a finance officer.
NCACC staff spoke in the committee that amended the bill, thanking the amendment sponsor for recognizing the problem some local governments face recruiting and retaining finance officers. NCACC requested that the issue be more comprehensively addressed through a larger stakeholder discussion. The amended bill with the new finance officer provisions passed two committees this week, and the full Senate will likely hold a vote on it next week.
Please review Section 6 of the bill and provide your feedback to NCACC. If you have questions on this legislation, contact Government Relations Director Johanna Reese.
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Legislation aimed at recruiting volunteer firefighters discussed in committee
The Senate State and Local Government Committee discussed a substitute version of Senate Bill 416 Recruit and Retain Volunteer Firefighters on Wednesday afternoon. The original version of the bill included provisions for forgivable community college loans for volunteer firefighters, fee waivers for hunting and fishing licenses, and a 25% property tax exclusion for qualifying firefighters on their primary residence, among other benefits. The committee substitute removes the provision for forgivable loans, but retains the fee waiver for hunting and fishing licenses and the property tax exclusion. The committee heard the bill for discussion only but could vote on it at a later committee meeting. NCACC understands the critical need for volunteer firefighters but has concerns about the proposed property tax exclusion. Please share any concerns or potential impact that you’ve assessed with your legislator and the Association.
For more information on this issue, please contact Government Relations Coordinator Amber Harris.
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Omnibus tax bill includes remote sales tax collection
The Senate tentatively approved legislation making large changes to state tax laws. Senate Bill 622 Tax Reduction Act of 2019 makes various changes to personal income tax and franchise tax laws. The bill also requires third party online sellers meeting certain transaction thresholds to collect sales and use tax. Legislative budget staff estimates a positive local revenue impact of $45 million in 2019-20 from the change. This specific provision achieves an NCACC Tax and Finance goal, and the Association appreciates the Senate for addressing this important issue in the bill. Procedurally the Senate must vote on S622 again before sending it to the House. This could occur as early as Monday afternoon when the Senate returns.
For more information on this legislation, contact Government Relations Coordinator Hugh Johnson.
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