LETTER: Thanks to Rabin, Stone
To the Editor:
NCRMA would like to thank Se. Ron Rabin and Rep. Mike Stone for their bi-partisan support to reign in a tax that was never envisioned to get to these levels.
I would like to point out that because the Privilege License Tax (PLT) is not regulated, it has become an easy tax to "adjust" at the local level based on a town's need to supplement its budget. In many cases municipalities have exceeded their taxing authority by levying PLTs based on gross receipts with no regard to profit or services provided.
Some businesses are paying thousands for the "privilege of operating a business," whiles others in the same shopping center pay zero or $25. For example, one family-owned business in Raleigh saw their tax bill go from $50 to over $9,000 yet this business does not receive additional police, fire, utility or trash service now than it did before.
Retailers pay property taxes, business license fees, trash collection fees and collect the sales tax for free. However, it is not practical for one industry to inequitably bear the burden of raising additional revenue for local budgets.
President and General Counsel
NC Retail Merchants Association