NC H995

Increases sales and use tax rate from 4.75% to 5.75% (one percent increase) effective July 1, 2012, with adjustments to telecommunications and video programming service distributions to cities and counties.

Reduces corporate income tax rate to 5.9% for taxable years beginning on or after January 1, 2012, and adjusts the fraction of corporate tax collections remitted to the Public School Building Capital Fund from a variable rate to 5/59.

Increases personal income tax exemptions by $450 for most filing statuses and $350 for higher income taxpayers, effective for taxable years beginning on or after January 1, 2012.

Directs revenue from the one percent sales tax increase to first offset corporate and personal income tax reductions, then provide a two percent salary increase for state employees, UNC employees, community college employees, and state-funded local school employees.

Any remaining revenue after employee raises is appropriated to the Department of Public Instruction for reducing local school administrative unit and charter school budget adjustments based on average daily membership.