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Lawmakers Cut Tax-Free Weekend, Lower Income Tax Rates

11:15 PM, Jul 31, 2013   |    comments
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Greensboro, NC - The tax-free weekend will soon be a perk of the past. 

This weekend will be the last tax-free holiday in North Carolina. Lawmakers axed the three-day event in their tax-plan overhaul.

The plan also set a flat income-tax rate, lowered the corporate tax rate, increased the per-child tax credit for low-income families and repealed the estate tax.

Lawmakers had to tinker with the taxes to make this plan work but some say ending the sales-tax holiday just doesn't make sense.

"Some of them spend thousands of dollars a year," said Leah Roueche, owner, Apple Educational Supplies.

Teachers pack Roueche's store for the tax-free holiday. 

"We can be backed up line-wise, with two registers all the way to the back of the store."

Roueche, "think[s] it's going to be a shame that it ends." Not because it could affect her bottom line. She thinks it will hurt her customers. 

"I just feel like they're taking more and more away from the teachers and just not giving them what they need for their classrooms," explained Roueche.

First grade teacher Lizette Money went to Roueche's shop to plan her purchases for this weekend.

"When you know there is a weekend coming up that gives a little bit of a break, tax break, that really helps your budget," explained Money. 

Sheri Miller, a fifth grade teacher, says the savings aren't worth the crowd.

"I kind of stay away. I tend to not go into stores on tax-free weekend."

Teachers might be losing money on this end of the deal but could see savings in their paycheck. 

The average income for new teachers is nearly $31,000 a year.

Currently, if they're filing taxes as a single person, they pay a 7% income tax-rate.

Under the new tax plan, they will pay a flat tax-rate of 5.8%.

That flat rate is for all taxpayers. It will drop again to 5.75% in 2015. 

The North Carolina Department of Revenue estimates the state will lose $13.2 million over the tax-free weekend.

WFMY News 2

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