The Voice of
Business, Industry & the Professions Since 1942 North Carolina's
largest business group proudly serves as the state chamber of commerce
Inventories From Franchise Tax Base
North Carolina General Assembly should reform the state franchise tax
by removing inventories/work-in-progress from Schedule D.
Explanation: This reform of the franchise tax on
inventories will assist companies which engage in high, value-added
manufacturing and encourage the types of jobs that we as a state most
want to retain and attract. North Carolina is one of only three states
that taxes inventories as a part of the franchise tax. This puts our
state at a great disadvantage when we are trying to recruit and retain
high-wage employers with expensive or large inventories. It also makes
it more difficult for new businesses to make a profit, when they must
pay a franchise tax based on their inventory.
industry in our state has always been a source of economic stability.
We need to nurture and encourage this high-value part of our economy.
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