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June 20, 2013

N.C. Nonprofits Fight Plan to End Deductions and Cap Sales-Tax Refund

Charities in North Carolina are battling a legislative tax proposal that would eliminate itemized deductions on state returns, including those for donations, and limit sales-tax refunds for nonprofit groups, the Charlotte Observer writes.

At a news conference Wednesday, the N.C. Center for Nonprofits focused its fire primarily on the sales-tax provision, saying it would result in substantial job and program cutbacks at state charities. Big nonprofits such as hospitals and universities now recoup millions of dollars a year in spending on sales levies.

The state Senate plan would cap the refund at $5-million next year, $1-million in 2015, and $100,000 in 2016. North Carolina's nonprofit hospitals have come under scrutiny in recent months for amassing multibillion-dollar reserves and paying top executives millions.