NC H998

Reduces individual income tax rate from 5.8% to 5.75% effective January 1, 2015, and establishes standard deductions ($15,000 married filing jointly, $12,000 head of household, $7,500 single).

Reduces corporate income tax rate from 6.9% to 6% effective January 1, 2014, with potential further reduction to 5% effective January 1, 2015, if revenue triggers are met ($20.2 billion in fiscal 2014-2015 or $20.975 billion in fiscal 2015-2016).

Eliminates franchise tax on electric power companies and piped natural gas excise tax, replacing them with general sales tax at 4.75% rate on electricity and natural gas sales effective July 1, 2014.

Applies sales tax to admission charges for entertainment activities (live performances, movies, museums) effective January 1, 2014, and adds sales tax to service contracts effective January 1, 2014.

Repeals North Carolina estate tax effective January 1, 2013, and eliminates various tax credits and exemptions while establishing new farm equipment exemptions and capping motor fuel excise tax at 37.5 cents per gallon through June 30, 2015.