Charities in North Carolina are battling a legislative tax proposal that would eliminate itemized deductions on state returns, including those for donations, and limit sales-tax refunds for nonprofit groups, the Charlotte Observer writes.
At a news conference Wednesday, the N.C. Center for Nonprofits focused its fire primarily on the sales-tax provision, saying it would result in substantial job and program cutbacks at state charities. Big nonprofits such as hospitals and universities now recoup millions of dollars a year in spending on sales levies.
The state Senate plan would cap the refund at $5-million next year, $1-million in 2015, and $100,000 in 2016. North Carolina's nonprofit hospitals have come under scrutiny in recent months for amassing multibillion-dollar reserves and paying top executives millions.