Taxes and Incentives
Corporate Business Income Tax
On January 1, 2017, North Carolina’s corporate tax rate dropped from 4% to 3%.¹
The deduction of related party interest expenses is limited, with certain exceptions.² The state will phase-in a single sales factor in 2016 and 2017 tax years, with a 100% sales factor imposed in the 2018 tax year. ² All these changes were enacted in 2015 Appropriations Act, H.B. 97.
Personal Income Tax
The income tax rate for earned incomed dropped from 5.75% in 2016 to 5.499% in 2017.
Effective for franchise taxes due on or after January 1, 2017, the measure of tax changes to a newly defined “net worth” basis and the cap for a holding company increases from $75,000 to $150,000.³
Sales & Use Tax
The Person County Sales Tax is 6.75% . The State of North Carolina receives 4.75% and Person County receives 2.00%.5
Local Occupancy Tax
Occupancy tax for overnight lodging where applicable is 6% for city and non-city residents. Examples would be hotels/motels, bed and breakfast, lake rentals, etc. The occupancy tax does not apply to campsites and RVs.
Real and Personal Property Tax per $100
City .67 for 2016 (2017 Rates will be determined by July 1, 2017)
County 0.7 (2017 Rates will be determined by July 1, 2017)
Assessment Ration 100%
Effective Rate per $100 for property located within City Limits – .67 & .70
There is currently no separate tax for schools or other special districts.
Incentives – Manufacturing
Certain sales and use tax exemptions apply to manufacturing equipment as follows:
- Electricity, fuel and natural gas utilized when used in manufacturing operation for primary uses that are manufacturing.
- Raw materials that become an ingredient or component part of tangible person property of a manufactured product.
Incentives – Public Infrastructure
Community Development Block Grants/Economic Development Program
Administered by the North Carolina Department of Commerce; it provides grants to local governments for public infrastructure development.
Rural Division, Economic Infrastructure Program
Provides grants to local governments to assist with public infrastructure projects that will lead to the creation of new, full-time jobs.
NC Utility Account Infrastructure Grants
These grants are dependent on funding availability and each project’s relative merits. Infrastructure grants are only provided to publicly owned and maintained utility infrastructure. The grant amount depends on the number of new, full-time jobs created and cannot exceed $10,000 per job created or $500,000 per project.
NC Departments of Commerce and Transportation Joint Economic Development Program
These state divisions work closely together to provide transportation improvements and infrastructure that expedites industrial/commercial growth and provides new jobs or job retention.
NC Department of Transportation Rail Industrial Access Program
Utilizes state funds to assist the construction or refurbishing of railroad spur tracks required by a new or expanding industry to encourage economic development.
Incentives – Other
JDIG – Job Development Investment Grant
A performance-based discretionary state financial incentive program that provides cash grants directly to new and expanding businesses based on a formula to help offset the cost of locating or expanding a business facility in the state. Grants are disbursed annually for up to 12 years based on specific company performance criteria.
One North Carolina Fund
This is a discretionary cash grant program that allows the North Carolina Governor to respond quickly to competitive job creation projects. This program, like all state funding economic development programs, is administered by the North Carolina Department of Commerce.
This popular community development block grant, building reuse program, provides funds to renovate and up-fit vacant industrial and commercial buildings for economic development purposes. Again, the state provides grant funds to local government applicants that work in conjunction with a company intending to operate in a vacant building and the primary criteria is the creation of new permanent, full-time jobs with a maximum award of $750,000.00 per local government.
Rural Division, Building Reuse Program
This program provides grants to units of local government for the following three purposes:
- Renovation of vacant buildings.
- Renovation or expansion of a building occupied by an existing North Carolina company wishing to expand in its current location and
- Renovation, expansion or construction of health care entities.
In Person County and the City of Roxboro, the maximum award is $500,000 per project.
Other Tax Exemptions
Certain tax exemptions are provided for Data Centers.
Sales and Use tax exemptions and tax credits are available for the rehabilitation of income-producing historic properties and owner-occupied historic residences.
Local Financial Incentives
Person County, the City of Roxboro and the Person County Business and Industrial Center, Inc.
501(c)(3) economic development organization work as a team to listen to your needs and expedite your business development plans. Through expedited permitting, local city and county financial incentives in the form of cash grants, assistance with locally available revolving loan funds, providing workforce development and supply chain information, arranging site inspections and providing detailed due diligence on our sites and buildings, we provide all our consulting services at no cost to you. With over $550 million in new capital investment since 2012, Person County’s economic development team will help make your project happen quickly and providing you with aggressive, innovative solutions to your future business plans that are sure to save you time and money. Call us now to learn how EVERYTHING IS BETTER IN PERSON!
For other local support opportunities, see the Economic Support page of this website.
https://www.nccivitas.org/civitas-review/18919/ ( Chart of NC income tax by year 1985-2017)