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New amusement tax for North Carolina in 2014

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Tomorrow, January 1, 2014, marks the start of a new sales tax that will impact many non-profit organizations and residents here in Charlotte and throughout North Carolina. Movie buffs, sports fans, music lovers, and others supporting the theater, dance and visual arts, will see taxes on their tickets or museum admissions rise from 6.75% to 7.5% depending on where in the state the tax is levied.

Rather than plan to by all your tickets for 2014 on December 31, 2013, be relieved to know that if your ticket was on sale in 2013, you will not be charged the new tax. Even if you buy your ticket on or after January 1, 2014, the new amusement tax does not apply.

The new law also reduced individual and corporate income taxes. North Carolina’s former 3-tiered personal income tax rates will be changed to a flat rate of 5.8 % in 2014 and 5.75 % in 2015. Corporate taxes will benefit with a fall from 6.9 % this year to 6 percent in 2014 and 5 percent in 2015.

Another related development found North Carolina employees updating their state withholding forms in the final days of December, 2013, as they are no longer allowed to clam themselves, their dependants, or spouses in 2014.

Visit the North Carolina Department of Revenue website to read the new tax laws.



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