Taxes and Incentives

Taxes

Corporate Business Income Tax

On January 1, 2019, North Carolina’s corporate tax rate dropped from 3% to 2.5%.

The deduction of related party interest expenses is limited, with certain exceptions. The state will phase-in a single sales factor in 2016 and 2017 tax years, with a 100% sales factor imposed in the 2018 tax year.  All these changes were enacted in 2015 Appropriations Act, H.B. 97.

Personal Income Tax

The income tax rate for earned incomed dropped from 5.499% in 2018 to 5.25% in 2019.

Franchise Tax

Effective for franchise taxes due on or after January 1, 2017, the measure of tax changes to a newly defined “net worth” basis and the cap for a holding company increases from $75,000 to $150,000.

Sales & Use Tax

The Person County Sales Tax is 6.75% . The State of North Carolina receives 4.75% and Person County receives 2.00%.

Local Occupancy Tax

Occupancy tax for overnight lodging where applicable is 6% for city and non-city residents. Examples would be hotels/motels, bed and breakfast, lake rentals, etc. The occupancy tax does not apply to campsites and recreational vehicles (RVs.)

Real and Personal Property Tax per $100

City .65
County .72
Personal Property Assessment Ratio: 100%

Real Property Assessment Ratio*: 100% of market value at the time of revaluation. Valuation years: 2013, 2021
*For Real Property Effective Rate outside of valuation years, contact our office for the current assessment ratio.

Fire Tax per $100

County-Only .0275

**There is currently no separate tax for schools or other special districts, and there is also no tax on inventory. **

Incentives – Manufacturing

Certain sales and use tax exemptions apply to manufacturing equipment as follows:

• Electricity, fuel and natural gas utilized when used in manufacturing operation for primary uses that are manufacturing.
• Raw materials that become an ingredient or component part of tangible person property of a manufactured product.

Incentives – Public Infrastructure

Community Development Block Grants/Economic Development Program
Administered by the North Carolina Department of Commerce; it provides grants to local governments for public infrastructure development.

Rural Division, Economic Infrastructure Program

Provides grants to local governments to assist with public infrastructure projects that will lead to the creation of new, full-time jobs.

NC Utility Account Infrastructure Grants

These grants are dependent on funding availability and each project’s relative merits. Infrastructure grants are only provided to publicly owned and maintained utility infrastructure. The grant amount depends on the number of new, full-time jobs created and cannot exceed $10,000 per job created or $500,000 per project.

NC Departments of Commerce and Transportation Joint Economic Development Program

These state divisions work closely together to provide transportation improvements and infrastructure that expedites industrial/commercial growth and provides new jobs or job retention.

NC Department of Transportation Rail Industrial Access Program

Utilizes state funds to assist the construction or refurbishing of railroad spur tracks required by a new or expanding industry to encourage economic development.

Incentives – Other

JDIG – Job Development Investment Grant
A performance-based discretionary state financial incentive program that provides cash grants directly to new and expanding businesses based on a formula to help offset the cost of locating or expanding a business facility in the state. Grants are disbursed annually for up to 12 years based on specific company performance criteria.

One North Carolina Fund

This is a discretionary cash grant program that allows the North Carolina Governor to respond quickly to competitive job creation projects. This program, like all state funding economic development programs, is administered by the North Carolina Department of Commerce.

Building Reuse

This popular community development block grant, building reuse program, provides funds to renovate and up-fit vacant industrial and commercial buildings for economic development purposes. Again, the state provides grant funds to local government applicants that work in conjunction with a company intending to operate in a vacant building and the primary criteria is the creation of new permanent, full-time jobs with a maximum award of $750,000.00 per local government.

Rural Division, Building Reuse Program

This program provides grants to units of local government for the following three purposes:

1. Renovation of vacant buildings.
2. Renovation or expansion of a building occupied by an existing North Carolina company wishing to expand in its current location and
3. Renovation, expansion or construction of health care entities.

In Person County and the City of Roxboro, the maximum award is $500,000 per project.

Other Tax Exemptions

Certain tax exemptions are provided for Data Centers.

Sales and Use tax exemptions and tax credits are available for the rehabilitation of income-producing historic properties and owner-occupied historic residences.

**Workforce development financial incentives are explained in the workforce section of this website.**

Local Financial Incentives

Person County, the City of Roxboro and the Person County Business and Industrial Center, Inc.
501(c)(3) economic development organization work as a team to listen to your needs and expedite your business development plans. Through expedited permitting, local city and county financial incentives in the form of cash grants, assistance with locally available revolving loan funds, providing workforce development and supply chain information, arranging site inspections and providing detailed due diligence on our sites and buildings, we provide all our consulting services at no cost to you. With over $550 million in new capital investment since 2012, Person County’s economic development team will help make your project happen quickly and providing you with aggressive, innovative solutions to your future business plans that are sure to save you time and money. Call us now to learn how EVERYTHING IS BETTER IN PERSON!

For other local support opportunities, see the Resources page of this website.

Foreign Trade Zone

Person County is part of Foreign Trade Zone 93.  Participation in FTZ 93 is administered by the Triangle J Regional Council of Governments. To learn more about the benefits of participation, please visit the TJCOG webpage. 

Resources

http://www.pwc.com/us/en/state-local-tax/newsletters/salt-insights/north-carolina-enacts-corporate-income-tax-and-other-tax-changes.html
https://www.mcdonaldhopkins.com/
https://www.nccivitas.org/civitas-review/18919/ ( Chart of NC income tax by year 1985-2017)
https://www.salestaxhandbook.com/north-carolina/rates/person-county