Dueling rallies for different tax bills

Published August 13, 2015

by Associated Press, published in Winston-Salem Journal, August 12, 2015.

Gov. Pat McCrory and Senate Republicans held dueling rallies Wednesday seeking support late in this year’s session from local government leaders and the public for two tax bills involving local governments.

McCrory anchored a public event outside the old Capitol building calling on senators to pass a House bill that would revive a state tax credit for renovating historic buildings that expired at the end of 2014. House Republicans, three Cabinet secretaries and dozens of local government leaders also attended.

About an hour later and a block away, Senate leader Phil Berger, R-Rockingham, and the chamber’s top budget-writer led the charge to urge House Republicans and ultimately McCrory to back an economic incentives bill the Senate passed this week. One provision inside reallocates how local sales taxes are distributed to counties, with more assistance largely going to rural counties.

“It’s a bill that I think all can live with, because it’s a give and take for both urban and rural,” Sen. Harry Brown, R-Onslow, said at the rally in front of the Legislative Building attended by 150 people. “We need to move this bill as quick as we can.”

The House gave bipartisan support to a scaled-back version of the historic preservation credit in March, but it’s been sitting ever since in what’s considered a dead-end Senate committee.

Senate Republicans have said the credit doesn’t fit into efforts to eliminate tax breaks for favored groups or industries. But McCrory called the legislation “common sense” to help prevent blight and rot on Main Streets, where out-of-state companies often look before deciding where to relocate and create jobs. State Cultural Resources Secretary Susan Kluttz said she’s traveled to more than 50 cities and counties to support reviving the credit.

“We’ve been waiting for months after months after months, and there are projects that are waiting for this capital investment to revitalize blocks in every one of our towns and cities,” McCrory said. “I’m growing impatient ... it’s time for action.”

McCrory threatened last month to veto legislation that contained an earlier version of the local sales tax redistribution, in which most of the local sales tax proceeds would be distributed based on population. Current law distributes 75 percent of it based on where sales occurred, which generally favor urban centers and vacation destinations.

Senators passed a bill Tuesday that contained both expanded incentives sought by McCrory along with distributing the local sales taxes equally based on population and points of sale. McCrory hasn’t spoken publicly about the updated bill.

House Republicans are weighing whether to accept the measure or seek change in negotiations. The Senate GOP rally also included speeches of support from a handful of House members from both parties urging their chamber’s colleagues to agree with the Senate. A strong House vote also could persuade McCrory to sign the bill into law, said Rep. Ken Goodman, D-Richmond.

August 13, 2015 at 9:07 am
bruce stanley says:

A great compromise has been put forward by the Senate. These guys know how to get things done. Let's play ball, House and Governor!