North Carolina lawmakers have introduced a bill that would significantly decrease tax breaks nonprofits receive for sales and use taxes, according to a Charlotte Business Journal report.
The bill, called the N.C. Fair Tax Act, includes an annual cap on the refund nonprofits can receive for sales and use taxes, effective July 1, 2014. It would cap refunds to $5 million that year before dropping to $100,000 in 2016.
If it's passed, the bill would result in large nonprofits like Charlotte-based Carolinas HealthCare System and Winston-Salem-based Novant Health paying millions more in taxes each year, according to the report. The Charlotte Business Journal reported Novant Health received a tax refund of roughly $21 million in 2012, but no figure was immediately available for Carolinas HealthCare.
Both systems have released statements opposing the legislation, according to the report.
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The bill, called the N.C. Fair Tax Act, includes an annual cap on the refund nonprofits can receive for sales and use taxes, effective July 1, 2014. It would cap refunds to $5 million that year before dropping to $100,000 in 2016.
If it's passed, the bill would result in large nonprofits like Charlotte-based Carolinas HealthCare System and Winston-Salem-based Novant Health paying millions more in taxes each year, according to the report. The Charlotte Business Journal reported Novant Health received a tax refund of roughly $21 million in 2012, but no figure was immediately available for Carolinas HealthCare.
Both systems have released statements opposing the legislation, according to the report.
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