There are 23 new laws that took effect on Jan. 1, 2014 for North Carolina residents, including new tax laws and new fee structures.
New fees include that owners of plug-in electric vehicles must pay a $100 registration fee to make up for gasoline taxes those vehicle owners will not be contributing.
There are also increased fees for hunting and fishing licenses issued by the Wildlife Resources Commission for residents and nonresidents. An annual sportsman/coastal fishing license increased from $55 to $65 at the beginning of 2014, for example. The approved bill also created a $10 bear management stamp that must be purchased before taking a bear. Revenue from the fee will go toward black bear research and management.
Other new laws effective in 2014 include that jurors who serve a full term on a grand jury don’t have to serve again as a grand juror for six years; emergency workers can break into a vehicle if they believe an animal inside is in danger; healthcare facilities that perform mammography exams must report breast density information to patients because dense breast tissue can make it more difficult to detect abnormalities and increase the risk of cancer; increased taxes for college, professional sporting events and tickets for movies, concerts and other attractions to a 6.75-percent tax; the elimination of the annual tax-free weekend for back-to-school shopping; cutting rebates for energy-efficient appliances; increased sales tax for mobile homes from two percent to 4.75 percent; and capped the state gasoline tax at 3.75 percent through June 30, 2015.
The income tax changes will impact the amount of money employees see in their paychecks this year. The former graduated tax system in North Carolina was eliminated with everyone now subject to a fixed 5.8 percent income tax.
North Carolina formerly had a three-tiered tax system where the highest earners paid 7.75 percent income tax, middle income paid seven percent and low-income paid six percent. The tax changes do not apply to the 2013 individual income tax returns to be filed this year.
New laws also eliminated personal exemptions, but raised standard deductions from $3,000 to $6,000, depending on filing status, to between $7,500 and $15,000.
Legislation also limited itemized deductions from mortgage interest and property taxes combined to $20,000. Charitable contributions allowed by federal law still can be deducted.
The child tax credit was raised from $100 per child to $125 per taxpayers with lower adjusted gross incomes. The $100 credit still is eliminated for taxpayers with higher incomes.
Legislation affecting taxes and fees was approved by the N.C. General Assembly, enacted into law by the governor and took effect Jan. 1.
To see a full list of new laws effective in 2013 and 2014 go to: www.ncleg.net/documentsites/legislativepublications/Effective20Dates/201320Effective20Dates/2013EffectiveDates.pdf.
To find the laws effective Jan. 1, 2014, scroll to the bottom of the document.