- North Carolina: First Step Taken To Repeal State Estate Taxes
- May 18, 2013 | Authors: David M. Kall; Susan Millradt McGlone
- Law Firm: McDonald Hopkins LLC - Cleveland Office
On May 8, 2013 the House of Representatives voted 82-37 to pass a bill (H.B. 101) that would eliminate estate taxes entirely in North Carolina. The bill now moves to the Senate for consideration. Eliminating the estate tax is estimated to cost the state $52 million in lost revenue for the next fiscal year, with that number expected to increase over time.
Proponents of the bill claim that it would “unleash economic activity” in the state, align North Carolina’s laws with those of other states in the Southeast, and eliminate a tax imposed on property that a person acquired over his or her lifetime. Tennessee is the only other Southeastern state that still has an estate tax. Opponents argue that this measure would benefit an extremely small number of wealthy individuals at the expense of other public services.
If the estate tax remains in North Carolina for 2013, the amount of an estate’s value that can be excluded for estate tax purposes is $5.25 million.