The North Carolina House has voted down a controversial local sales tax and economic incentive bill promoted by both the governor and the speaker. Legislators for and against separate aspects of the bill could not come to an agreement.
House Bill 1224, which would cap local government's ability to set local sales tax at 2.5 percent and create a "job catalyst" fund, was voted down by a 54-47 vote Tuesday .
The bill's defeat is a blow to Gov. Pat McCrory and House Speaker Thom Tillis, who touted the benefits of the Department of Commerce having $20 million in hand to help close big projects. They argued that it would help attract business to North Carolina by allowing the commerce secretary to buy or improve land and infrastructure for business development. Legislators from both parties criticized the measure, saying it gives the commerce secretary too much power on how to use the funding.
The Winston-Salem Journal reports that the bill died because the Senate was unwilling to compromise on a separate bill to finance teaching assistants.
It was one of the last major actions taken by the House before adjourning until after the November general election.
Rep. Paul Tine (D-Dare County) suggests that the legislature needs to break up this bill and let each issue stand on its own merits.
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