Tax

NC lawmakers set to discuss fate of estate tax

AP News
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Posted: Mar 07, 2012 11:32 AM
NC lawmakers set to discuss fate of estate tax

General Assembly members are discussing whether North Carolina's estate tax should be changed or repealed as its scope is about to expand.

A legislative oversight committee planned to hear Wednesday from supporters and opponents of the state's version of the estate tax.

The threshold for paying the tax will be lowered starting in 2013 from estates valued at or above $5 million to $1 million. Legislative staff estimates the state could generate $92 million from the tax during the next fiscal year.

North Carolina is one of 22 states with an estate or inheritance tax.

Repeal supporters argue the tax isn't a large income source and discourages job creation, but the North Carolina Justice Center says repealing the estate tax would move tax obligations away from the wealthiest households.