McCrory takes swipe at Senate bills

Gov. Pat McCrory let it be known Wednesday that he was not a fan of a state Senate plan to change how sales taxes are distributed among rural and urban areas of the state.

Posted 3:46 p.m. Mar 25, 2015 — Updated 3:55 p.m. Mar 25, 2015

Mark Binker

RALEIGH, N.C. — Gov. Pat McCrory blasted a state Senate plan that would change how sales taxes are divided among rural and urban counties during a speech before a group of University of North Carolina system officials Wednesday.

Currently, 75 cents of every $1 raised by the 2 percent local portion of the sales tax stays in the county where a sale is made, with the remaining quarter distributed on a per-capita basis statewide. Legislation filed Monday night would shift that over the next three years so all local sales tax revenue is distributed per capita.

While sponsors of the bill says it would even out an unfair split between rural and urban counties, McCrory said the plan would punish tourist areas that collect a disproportionate share of the state's sales taxes.

"I believe it will cause great harm to the economic engines of this state," McCrory said. "We cannot afford to have this bill passed."

This less than cordial greeting for the Senate sales tax measure is the latest in a string of disagreements between McCrory and the legislature, particularly the state Senate.

McCrory also urged the passage of of a historic preservation tax credit plan and called on the General Assembly to approve a House-passed economic development bill dubbed NC Competes. Senate leaders have taken up their own measure that McCrory doesn't like but have passed a bill to put $5 million in a job-recruiting fund until differences over the bigger bills are worked out.

"I can't wait another month or two months," McCrory said of the split between the House and Senate bills.

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McCrory takes swipe at Senate bills

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