Under the Dome

McCrory slams Senate sales tax bill

Gov. Pat McCrory came out strongly opposed to the Senate’s sales tax redistribution plan on Wednesday.

McCrory told a gathering of university officials at the N.C. Museum of History in Raleigh that the proposal “will cause great harm to the economic engines of this state.”

“It will raise taxes on millions of citizens and job-creators throughout the state. We cannot afford to have this bill passed in North Carolina. It will cause harm.

“It will also decimate the travel and tourism industry in the west, in our cities, and on the coastal beach areas that are dependent upon sales tax revenue, because they’ve made the investment in the infrastructure to bring travel and tourism to their towns.”

Senate Bill 369, filed earlier this week, would change how the state parcels a portion of taxes collected when people buy clothes, building material and other goods. Instead of basing each county’s share largely on where sales occur, the bill would change to a population-based distribution system that would send less revenue to shopping destinations, such as in large counties like Wake and Mecklenburg. Rural counties would receive much more than they do now.