New law increases NC zero-tax bracket, targets online sales
RALEIGH, N.C. (AP) — North Carolina income tax filers will get more generous breaks on their returns soon but could pay more upfront sales taxes for online purchases in a measure Democratic Gov. Roy Cooper has signed into law.
Cooper’s signing announcement came several hours after he vetoed another bill that would have reduced corporate franchise taxes.
The Republican-penned measure signed on Friday increases the standard deduction — meaning the amount of income on which filers pay no taxes — by $750 to $1,500 starting in 2020. For a single filer, the deduction will now be $10,750.
The new law also directs companies like Amazon to collect sales taxes on consumers buying products they offer through third-party retailers. It’s designed to collect more taxes from out-of-state retailers given a recent U.S. Supreme Court decision.