The North Carolina State Senate voted last week to reduce a franchise tax levied on outside corporations that want to conduct business in North Carolina, Dawn Baumgartner Vaughan reported on NewsObserver.com.
The tax is unpopular with Republicans who believe that it discourages companies from coming to North Carolina, but many Democrats believe it is an important source of tax revenue. The loss of tax revenue would account for about $1 billion over the span of five years, Vaughan reported.
The bill, SB 578, passed to reduce the tax by one-third, according to Vaughan, and increase the amount of film grants. It will still need to pass through the North Carolina House before landing on Democratic Gov. Roy Cooper's desk.
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