H.B. 975 Summary

• Updates North Carolina's Internal Revenue Code reference from January 1, 2017 to February 9, 2018, and makes adjustments for federal tax provisions including Opportunity Zones, qualified business income deductions, and global intangible low-taxed income.

• Expands sales and use tax to repair, maintenance, and installation services for tangible personal property and digital property; clarifies taxation of mixed transactions and real property contracts; and provides a grace period for certain sales tax compliance issues through December 31, 2018.

• Modifies franchise tax calculations for corporations and partnerships by removing treasury stock deductions and adjusting asset valuation methods, effective for tax years beginning January 1, 2019.

• Establishes requirements for wine and spirits permittees to register with the Department of Revenue and updates motor fuel excise tax rates for certain alcohol retailers from 16¢ to 18¢ per gallon, increasing to 20¢ on July 1, 2018 and further escalating through 2022.

• Removes the Department of Revenue from the list of agencies required to transition information technology operations to the Department of Information Technology unless federal security standards for taxpayer information sharing are met.