Multistate Tax alert archive

State tax legislative, judicial, and administrative developments

​The Multistate Tax alert archive includes external tax alerts issued by Deloitte Tax LLP's Multistate Tax practice during the last three years. These external alerts highlight selected developments involving state tax legislative, judicial, and administrative matters. The alerts provide a brief summary of specific multistate developments relevant to taxpayers, tax professionals, and other interested persons.

Subscribe to receive State Tax Matters via email.

Most recent Multistate tax alert

North Carolina enacts significant tax law changes

On September 18, 2015, Governor Pat McCrory signed House Bill 97, which includes the following modifications to North Carolina law:

  • Amends mechanism for potential future corporate income tax rate reduction from 4 percent to 3 percent
  • Phases in single sales factor apportionment over three years beginning in 2016, replacing the existing double-weighted sales factor apportionment for both income and franchise tax
  • Requires certain corporate taxpayers to file a market-based sales factor sourcing informational report with the North Carolina corporate income tax return for the 2015 taxable year
  • Adds an intercompany interest expense addback provision with corresponding exceptions
  • Replaces the capital stock, surplus, and undivided profits element of the franchise tax capital base with an apportioned net worth tax measure
  • Expands the sales and use tax base to include repair, maintenance, and installation services

H.B. 97 included a provision for the automatic repeal of the tax law changes discussed in this Tax Alert (other than the sales tax changes) unless two other bills, House Bill 117 and House Bill 943, were ratified prior to January 1, 2016. H.B. 117 was ratified on September 24, 2015; H.B. 943 was ratified on September 30, 2015.

This tax alert summarizes the more significant North Carolina tax law changes contained in H.B. 97, which have various effective dates as specified in the discussion that follows. This Tax Alert also notes that the corporate income tax rate will be reduced from 5 percent to 4 percent for taxable years beginning on or after January 1, 2016. This rate reduction was not part of H.B. 97, but instead was attributable to North Carolina having met a specified tax revenue target.

October 2015

This month in Multistate Tax:

2014 Multistate Tax alerts

Find out what you missed in 2014. Explore our archive.

Back to top

2013 Multistate Tax alerts

Key updates in 2013. Explore our archive.

Back to top

More topics

Stay connected


Contact us

Contact us via our online form

Find an office

Find a local office


Robert Uhl

Partner | Deloitte & Touche LLP


Life at Deloitte

People make Deloitte one of the best places to work. What’s great about the people? That’s an easy answer. They are exceptional. Each person is unique and valued for that, among the best and brightest in the business, and takes pride in his or her achievements and the success of others.