NC S363

Repeals multiple archaic state and local privilege taxes on specific businesses (pawnbrokers, peddlers, fortune tellers, music machines, etc.) effective January 1, 2015, and prohibits counties and cities from imposing new privilege license taxes without specific statutory authorization.

Replaces the corporate franchise tax with a Business Privilege Tax applicable to all business entities with limited liability (corporations, LLCs, limited partnerships, etc.) at a rate of $1.35 per $1,000 of adjusted net worth, with a minimum tax of $500 and varying maximum caps ($5,000 for non-corporations, $75,000 for holding companies), effective for taxable years beginning January 1, 2015.

Reduces annual report filing fees for limited liability companies, limited partnerships, and limited liability limited partnerships from $200 to $25 for paper filings and $18 for electronic filings, effective January 1, 2015.

Updates definitions and conforming language throughout tax code to replace references to repealed privilege taxes and to apply the new business privilege tax framework to all limited liability business entities uniformly.

Provides savings clause protecting taxpayer rights and liabilities arising under repealed statutes prior to the effective date.