Department of Revenue

State tax refunds back on schedule

markjohnson — Mon, 18 May 2009 15:44:18 -0400

The Department of Revenue reports that state tax refunds are back on schedule.

Spokesman Thomas Beam said the agency had sent out 2.7 million refunds totaling $1.9 billion as of May 13.

At the same time last year, the state had dispatched 2.5 million refunds totaling $1.7 billion.

The agency still has plenty of refunds to process, but it has eliminated the approximately four week delay that had taxpayers snarling last month. Revenue department officials had slowed down the refund process because the state's cashflow had grown particularly tight as the recession took a toll on the money flowing in to the state.

Tax returns submitted in April are still being processed, Beam said. Department officials previously said the typical turnaround time is six to 12 weeks for paper tax returns and two to four weeks for electronic returns.

UPDATE: The remaining returns filed on paper in April should take about six weeks to process, while electronic filings from last month should take two to four weeks, Beam said. He estimated there are 135,000 more returns from April to process.

Stimulus costs less

markjohnson — Wed, 25 Feb 2009 17:50:09 -0500

The tax cuts included in the federal stimulus package would cost North Carolina less than state officials initially thought last week.

Barry Boardman, an analyst for the non-partisan Fiscal Research Division at the legislature, outlined for lawmakers Wednesday how the state would lose $585 million over two years if they conform state tax laws to the federal changes, as they typically do. Much of that money is through tax breaks for businesses.

Last week Department of Revenue officials, who were given an extraordinarily quick turnaround time of a few hours, estimated the loss at about $760 million. Boardman said his office, given more time, adjusted for several factors, including that the state and federal government operate on different fiscal year calendars.

Legislators now will have to decide whether to alter state tax laws to mirror the federal changes. They chose not to copy federal tax breaks during the economic downturn in 2002, which complicates tax filing, particularly for businesses.

What is the JDIG program?

ryanteaguebeckwith — Mon, 17 Sep 2007 15:41:18 -0400

Answer:

The Job Development Investment Grant program gives annual cash grants to businesses that relocate or expand in North Carolina.

The program was signed into law by Gov. Mike Easley on Oct. 31, 2002, and became effective Jan. 1, 2003. It has been amended in 2003 and 2006.

Between 2004 and 2007, the committee promised more than $200 million in grants to companies such as Google, GlaxoSmithKline and Dell Computer, in exchange for pledges of more than 20,000 jobs.

The grants are paid over as many as a dozen years. Companies must meet specific hiring and other criteria each year before the grant is given. By law, a business can create as few as 10 new jobs to qualify, but typically it's at least 100.

The grants are approved by Economic Investment Committee, a five-member panel.

The governor appoints three people on committee: The secretaries of the state departments of Commerce and Revenue and the director of the Office of State Budget and Management. The other two are appointed by the Speaker of the House and the president pro tem of the Senate.

The committee decides on grants in closed-door sessions, though the final approval is done in an open meeting and the public can weigh in before each payment is made.

What is the Bill Lee Act?

ryanteaguebeckwith — Thu, 13 Sep 2007 17:06:12 -0400

Answer:

The Bill Lee Act of 1996 created tax credits for job creation, investment and worker training.

The act was signed into law by Gov. Jim Hunt on Aug. 2, 1996, and amended in 1997, 1998, 1999, 2000, 2001, 2002, 2003, 2004, 2005 and 2006.

The original bill lowered the state sales tax on food, the corporate income tax and other taxes. It also created a system of tax credits to encourage companies to locate in economically distressed counties.

The credits were originally aimed at manufacturing, warehousing and data processing jobs.

Central administrative offices and air courier services were added in 1997; customer-service call centers, wholesalers and electronic mail order operations in 1999; aircraft facilities in 2000; software publishing in 2001; computer manufacturing facilities in 2004; and motorsports facilities and research and development sites in 2006.

Central administrative offices were replaced by company headquarters in 2006.

Originally set to expire in 2002, the act was extended four years in the 2000 session, with the expectation that it would be overhauled and renewed before then.

In 2006, the tax credits were restructured to give more narrowly focused credits to address concerns that incentives were not going to the rural areas targeted by the bill. The new program's sunset was set for 2011.

Tax credits given before 2007 are generally referred to as William S. Lee Tax Credits. Those made under the restructured program are referred to as Article 3J Tax Credits.

The N.C. Department of Revenue issues yearly reports on the tax credits.

The act is named for former Duke Energy chairman William States Lee III, who chaired the N.C. Economic Development Committee for Governor Hunt. Lee died in 1996.

Its full title is the William S. Lee Quality Jobs and Business Expansion Act.

Easley names new Revenue secretary

ryanteaguebeckwith — Tue, 28 Aug 2007 17:43:10 -0400

Gov. Mike Easley named Reginald "Reggie" Hinton Revenue Secretary.

In a press release, the governor's office said that Hinton, acting secretary since June, would take the job permanently. He replaces Norris Tolson, who stepped down to become president of the N.C. Biotechnology Center.

"Reggie Hinton's nearly three decades with the Department of Revenue gives him a unique perspective and expertise when it comes to the vital task of overseeing the effective collection of state revenues," Easley said in a statement.

A Wake County native, Hinton has worked for the Department of Revenue since 1978. Since 2001, he has been chief deputy secretary.

The revenue department is responsible for administering tax laws and collecting taxes in North Carolina.

Bingham's Beetle

bkrueger — Tue, 24 Jul 2007 17:37:30 -0400

State Sen. Stan Bingham may be about to get some national television exposure.

But it's not about his work at the legislature. It's because he's something of an alternative fuel renegade, reports Lynn Bonner.

A reporter from CBS News has asked to interview the Davidson County Republican on Wednesday moprning about his VW Beetle, which has been converted to run on vegetable oil.

Bingham said he's ready to talk about what he considers the onerous mileage reporting the state Department of Revenue requires of drivers who, like him, want to drive cars that smell like french fries.

The state tax office wants mileage reports, Bingham says, so they can collect motor fuel taxes.

What is the gas tax?

ryanteaguebeckwith — Mon, 09 Jul 2007 17:18:00 -0400

Answer:

A state tax on gasoline that supports road-building.

The tax was created in 1921. According to a historical chart by the N.C. Department of Revenue, it has increased from one cent per gallon then to as high as 29.9 cents.

Based on the Dec. 31, 2006, rates, a nonpartisan research group calculated that North Carolina had the seventh-highest gas tax in the United States.

Amid rising gas prices in 2006, Salisbury lawyer Bill Graham led a campaign to roll back the gas tax. Graham's campaign collected 70,000 signatures over the Internet and held a rally outside the General Assembly in May.

In response, the state legislature capped the tax at 29.9 cents per gallon. The rate, which is adjusted twice a year based on the cost of gasoline, can go below that amount, but not above it.