Members' Top Concerns Lay in Balance
During Last Week of Session

While a state budget was passed by the General Assembly and sent to the Governor this week, state lawmakers are still working on numerous pieces of legislation of vital importance to the North Carolina business community.

The North Carolina Chamber continues to fight to improve our state's business climate and advance our Competitiveness Agenda during the last days of session. Our state Chamber will be in the building when they cut the lights out if that's what it takes to address our customers' most pressing economic concerns. Being a force for business is not an easy assignment, but there is none more important to North Carolina's future.

Working for an Efficient & Fair Tax Appeals Process

The North Carolina Chamber has been working vigorously over the last several months to advance a bill that would amend our state's current tax appeals process. Senate Bill 242: Tax Appeals Process would reform the process for the review of disputed tax matters to provide taxpayers an opportunity for an independent hearing outside of the Department of Revenue prior to paying the tax.

Reform in this area is a top priority for our Chamber not only because our customers have told us so, but also because national organizations and finance officers across the country have identified this as a major vulnerability for North Carolina in the intense state-to-state competition for jobs and commerce. Tax policies and structure matter to businesses as they affect location decisions, job creation and retention, and the long-term health of a state's economy. Because efficient, fair and predictable tax policies are imperative to a state's economic development success, our state Chamber will continue its efforts to delivery tax policy improvements this year. A victory here should go a long way in making North Carolina more competitive than its peer states and others working every day to get better than North Carolina at attracting business investment.

Chamber Still Fighting
to Prevent Excessive Landfill Regulations

Senate Bill 1492: The Solid Waste Management Act of 2007 is still the subject of heated debate during the last days of the legislative session. The bill, if passed, will increase the cost of waste disposal in North Carolina through taxes, fees, and excessive regulation. The proposed landfill regulations equate to a serious business issue, as landfills are an essential component of the infrastructure of our state's viable economy. Waste disposal capacity is an important piece of the critical infrastructure we need to keep North Carolina growing, attracting new businesses, and improving the quality of life for all of our citizens.

Our state Chamber supports sensible, economically-feasible regulations that strike the critical balance between economic prosperity and environmental protection. While certain improvements have been made to Senate Bill 1492 as it has moved through the legislative process, it still does not strike this balance. Removing a requirement for double liners, lowering a proposed trash tax, and exempting existing landfills from the proposed new regulations have all made the bill less costly. Despite these improvements, however, our Chamber, economic developers and the waste industry remain opposed to the version of the still pending because new siting regulations are so stringent that it may be impossible to site new facilities.

Energy Bill Advances Despite Opposition:
Reliable, Affordable Energy and Tax
Exemption for NC Manufacturers at Stake

The North Carolina Chamber is still advocating this important energy bill as it provides mechanisms for our state's utilities to meet the growing demand for energy in our state. Further, the bill is good for North Carolina's environment and quality of life. Senate Bill 3: Promote Renewable Energy/Baseload Generation is a comprehensive plan that supports investment in robust energy efficiency programs, while at the same time recognizes utilities' obligation to provide power to consumers - business and residents alike.

Senate Bill 3 (the energy bill) also includes a provision to phase out sales and excise taxes on energy sold to manufacturers. Lawmakers accounted for the dollars to phase out this tax in the state budget, but language to make the tax exemption happen is included in the energy bill.

Manufacturers today face unprecedented challenges, rising energy costs among them. North Carolina is the only state in the southeast except Georgia and Alabama that does not already exempt energy sold to manufacturers from the sales tax. Our state Chamber will continue to urge our lawmakers to capitalize on this opportunity to keep North Carolina manufacturers in business here and help them remain competitive nationally and globally. Manufacturing jobs are good jobs - paying on average 25 percent more than non-manufacturing jobs.

State Chamber Ever-Present Advocate for Businesses:
Being "Force for Business" Requires Unrelenting Vigilance

Even with only a few days left in this legislative session the North Carolina Chamber will be fighting on behalf of businesses of all sizes and industry sectors - in all regions of the state -- up until the final hour. Key pieces of legislation vital for North Carolina's economy and future lay in the balance as the session comes to a close, and our Chamber will continue to deliver that message to lawmakers. While we have achieved significant victories already this session (more about that in a future edition of this newsletter), our state Chamber is determined to add to those successes in this final week of legislative activity. You told us what you need and we are doing everything in our power to deliver results. Being a true force for business requires an unrelenting vigilance in all branches and at all levels of government.