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HOUSE TO UNVEIL TAX PLAN OUTLINE:House Republicans plan to offer their own North Carolina tax overhaul plan Thursday that would reduce personal and corporate income tax rates and expand the sales tax to cover more services. The proposal's scope is much narrower than what Senate counterparts offered as GOP legislators try to fulfill a commitment to carry out tax reform this year.

The plan attempts to simplify income taxes and reduces the number of income tax brackets from three to one, according to the proposed legislation obtained by The Associated Press. House Republican leaders want to reduce slightly the combined state and local sales tax consumers in most counties pay from 6.75 percent to 6.65 percent. They also would subject the sales tax to a handful of new services such as automobile repairs and installations for personal property and warranty and service contracts, the bill says. In contrast, the Senate proposal unveiled last week would make the sales tax base one of the broadest in the country. More here.

NORQUIST TO BLESS SENATE TAX EFFORT: Americans for Tax Reform leader Grover Norquist will stand with Senate leader Phil Berger at a 9:30 a.m. press conference Thursday to talk about the Senate's tax rewrite. The visit is being coordinated by Americans for Prosperity, an advocacy group that pushing hard for a major tax overhaul measure this session. Opposition groups already are framing the visit, saying Norquist will support a bill that could raise taxes on a majority of people in the long-term. A luncheon with tax activists outside the legislature will follow later in the day.

Good Morning! This Dome Morning Memo is (unofficially) brought to you by Krispy Kreme donuts and coffee -- which is much needed after the House worked near midnight to beat the crossover deadline on a bevy of controversial bills in a 10-hour session. If you went to bed early, click below for all the North Carolina political news and analysis.***

UNC-CHAPEL HILL TO GET FIRST WOMAN CHANCELLOR: As first reported by The News & Observer, UNC system officials will name Carol Folt, the interim president of Dartmouth College, as the next chancellor at the University of North Carolina at Chapel Hill. Folt, 61, would be the first woman to lead the campus in Chapel Hill, where the 29,000-member student body is 58 percent female. She will succeed Holden Thorp, who is stepping down by July 1 to become provost at Washington University in St. Louis. Full story.

McHENRY WON'T CHALLENGE HAGAN: N.C. Congressman Patrick McHenry took his name out of the crowded field of potential challengers to Democratic U.S. Sen. Kay Hagan, who faces re-election in 2014. Polls put McHenry in the top half of Republicans. "I'm grateful for the good numbers, but I think I've got a better opportunity to make a difference here in the House," McHenry told the Mountain Xpress in Asheville. "I want to end the distraction about this potential Senate run so I can get back and focus on the work that I need to be doing to help get this economy going."

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UPDATED: TODAY AT THE STATEHOUSE: The House and Senate convene this evening in the old legislative chambers at the Capitol to commemorate the 10th anniversary of the recovering of the N.C. Bill of Rights after a Union soldier took it during the Civil War. Gov. Pat McCrory will attend a reception for the event earlier in the day.

McCRORY DISTANCES HIMSELF FROM TAINTED BURNS MONEY:From AP: North Carolina's governor says he had no contact with a campaign contributor who faces racketeering charges in Florida over illegal gambling. Gov. Pat McCrory said Friday he had never heard of Chase Egan Burns, the Oklahoma man accused this week of owning gambling parlors operated by Allied Veterans of the World. Prosecutors say the purported charity earned about $300 million from illegal gambling, with only about 2 percent actually going to veterans. McCrory's campaign has purged itself Wednesday of $8,000 in contributions made in October by Burns and his wife, sending the money to a Durham charity. "I wouldn't know him if I saw him," said McCrory, a Republican. "I think we got it (the checks) through the mail."

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HAGAN HIRES FORMER REID AIDE AS CAMPAIGN MANAGER: The 2014 U.S. Senate race is taking shape with Democratic incumbent Kay Hagan hiring Preston Elliott as her campaign manager. Elliott most recently served in the same role to help U.S. Sen. Jon Tester win re-election in Montana, one of the closely watched races of the 2012 campaign cycle. In 2010, Elliott worked as coordinated campaign director for U.S. Senate Majority Leader Harry Reid in his re-election effort, another high profile race. The big hire signals that Hagan expects a big fight in 2014. "He has a proven track record of success, and with his help and the help of North Carolinians of all walks of life, I expect to cross the finish line with a victory in November 2014," Hagan said in a statement.

WHO WILL HAGAN FACE?: A new Public Policy Polling survey -- set for release later Tuesday and obtained exclusively by Dome -- shows its a wide open race among Republican primary voters. Republican Lt. Gov. Dan Forest leads the field with 18 percent, according ot the Democratic polling firm. PPP added Forest's name to the potential field for the first time this month and he still managed to outpace Congresswoman Virginia Foxx (13 percent) and Labor Commissioner Cherie Berry (12 percent). The only announced candidate, tea partier Greg Brannon, gets 4 percent and at least a quarter of voters weren't decided on any of the nine names PPP tested. (More from the poll below.)

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UPDATED: WHAT REDISTRICTING MEANS: Only one competitive congressional race in 2014. Larry Sabato's Crystal Ball political rankings show what happens when congressional districts are packed with like-minded folks. Of the state's 13 congressional races, only one is deemed competitive between parties. The seat is Democratic Congressman Mike McIntyre in District 7. McIntyre won a close race in 2012 -- one of the few where Mitt Romney won the president vote -- and another tight contest is expected in 2014. The pundits at University of Virginia give him the early edge, though, ranking the race "leans Democratic."

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GOP FLIRTS WITH CHARLOTTE: Could Charlotte do for Republicans in 2016 what it did for Democrats in 2012? The Republican National Committee’s meeting in Charlotte this week has fueled speculation that the GOP might return for its national convention in four years. “It’s always a possibility,” GOP Chairman Reince Priebus said Wednesday at the Westin hotel. “North Carolina was good to us. And it’s a red state – all the more reason to look at Charlotte.”

AFP TOUTS GOP REIGN IN NORTH CAROLINA: Tim Phillis, the national president of Americans for Prosperity, writes in a Politico op-ed that North Carolina is a state where the GOP plans to make a difference. It starts: "In Raleigh, N.C., on Jan. 11, a new free-market Republican governor celebrated his gubernatorial win at the inaugural balls. The occasion was historic for North Carolina: the first time since Reconstruction that a conservative GOP governor will be joined by free-market GOP state legislative majorities in both state legislative chambers." Read full piece here.

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UPDATED:Republican House Speaker Thom Tillis acknowledged Wednesday that he is considering a possible bid for U.S. Sen. Kay Hagan's seat in 2014 but a decision won't come until June at the earliest.

"You can't not think about what you are going to do because I term-limited myself," said Tillis, who is serving his final two-year term. "It would be disingenuous to say you are not thinking about what you do, but there is a lot of opportunity out there that are just not political, professional opportunities and other things. ...It's something I'll deal with after June."

N&O political prognosticator Rob Christensen makes predictions about what to expect in 2013: voter ID, limited tax reform, gun laws, tracking and a Thom Tillis run for U.S. Senate. See them all here and comment on what you think will happen.

More political headlines below:

--Sue Myrick's term in Congress is coming to an end. Franco Ordonez takes a look: In the public arena, she has been at the center of heated debates on controversial issues including immigration and terrorism. But the image of her working on behalf of vulnerable North Carolina families is exactly what friends and colleagues say defines her the best.