In a story posted on the League's website, the group expresses concern at comments made by Sen. Bob Rucho (R-Mecklenburg) that cities could be protected from losing revenue by reforming the sales tax code to apply it to a broader base of services.

 

"Sen. Rucho told the committee that some municipalities have “abused” the privilege license tax authority, but that many municipalities would be kept whole or nearly whole from the revenues lost through privilege license tax reform if the state were to expand its sales tax to a broader base of services," said the League's posting. "The League does not view it as a safe solution for cities to have privilege license revenues eliminated with only the commitment to make up some of that revenue through future tax reform."

 

The issue is scheduled to be discussed Wednesday at a meeting of the Revenue Laws Committee of the General Assembly.