WARNING! THIS BILL WAS NOT ENACTED!
The clock ran out on HB 1224 and we've had our fingers
crossed for two weeks hoping that having the House and Senate both
in session tomorrow might yield some legislative love and perhaps
another look at HB 1224 -- which is somewhat controversial but
contains for important provisions we'd like to see
passed.
This bill was introduced in the House to make changes to the
economic development fund called JMAC (Jobs Maintenance and Capital
Development). Typically when the JMAC is amended it is to
assist a certain manufacturer with converting its
manufacturing process to change its product. For example,
Domtar used to make paper in northeastern NC - I think I remember
it was for the bags that dog food is sold in. It received JMAC
funding to convert that process to make the paper/pulp product that
is the absorption in disposable diapers. Anyhow, the latest change
was to allow a manufacturing process to become more energy
efficient and reduce emissions, slightly lower some
employment-related thresholds, and add $10 million to the fund
still capping each project award at $6 million annually. We hear it
was Evergreen Packaging.
The Senate made this bill a new animal by incorporating local sales
tax changes and others in what became a controversial bill. The
House rejected the bill and a conference agreement was reached. The
Senate adopted the Conference Report but the House referred it to
its Rules Committee before it left town, adding more bad feelings
to an acrimonious political atmosphere.
The conference report for HB 1224, which did not become law, does
the following:
- limits the local government sales and use tax rate to 2.5%;
- allows Durham, Orange, Forsyth, Guilford, Wake and Mecklenburg Counties to retain a local sales and use cap of 2.75% if a majority of voters in those counties approve the levy of a 0.25% sales and use tax for public transportation, for public education, for general purposes, or for a combination;
- directs Revenue Study Laws Committee to study historic rehabilitation incentives;
- adds "historic rehabilitation incentives" grants;
- makes various changes to tax and economic development laws;
- clarifies the confidentiality of unemployment compensation records; and
- makes technical corrections to the revenue laws.
The politics will continue as both chambers of the General Assembly are working/meeting/fighting/ignoring/adjourning on Thursday. This bill is eligible for consideration tomorrow but we hear the House won't take it up.
Reminder! This bill has not been enacted!
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