Sen. McInnis files bill in North Carolina Senate to modify tax and revenue laws

A new bill filed by Sen. McInnis seeks to update tax and revenue laws in North Carolina, aiming to improve administrative procedures and tax compliance, according to the North Carolina State Senate.

The bill, filed as SB 595 on March 25 during the 2025 regular session, was formally listed with the short title: ‘Rev Laws Tech Chngs/BBA Chngs/P2P Tax Parity.’

The following is our breakdown, based on the actual bill text, and may include interpretation to clarify its provisions.

In essence, this bill proposes various modifications to the tax and revenue laws in North Carolina. It includes technical and administrative changes to personal income tax, stipulating new rules for partnerships concerning federal tax adjustments and establishing procedures for these entities to report and pay any state taxes due. It introduces tax parity for short-term car rentals by expanding the alternate highway use tax to include peer-to-peer vehicle sharing providers. Additionally, it makes alterations to sales and excise taxes, updating definitions and provisions for tax collection and payment. The bill also includes adjustments to property tax regulations, such as provisions for burial property, and changes to administrative enforcement, including penalties for non-compliance with tax codes. Several sections have specific effective dates, with various changes effective on January 1, 2025, July 1, 2025, or October 1, 2025.

Of the two sponsors of this bill, Mcinnis proposed the most bills (23) during the 2025 regular session.

Bills in North Carolina follow a multi-step process before becoming law. A lawmaker starts by filing a bill, which is assigned to a committee for review. The bill must be read three times in each chamber. If one chamber changes the bill after the other passes it, both must agree on the final version. Once both chambers approve the same bill, it goes to the governor, who has 10 days (or 30 if the legislature is not in session) to sign, veto, or let it become law without a signature.

You can read more about the bills and other measures here.

Mclnnis, a Republican, was elected to the North Carolina State Senate in 2023 to represent the state’s 21st Senate district, replacing previous state senator Ben Clark.