NC House panel approves ending "death" tax

Feb. 20, 2013 @ 10:59 AM

Republicans in the North Carolina House want to repeal a tax on multi-million dollar estates that they say encourages the wealthy to move out of state and hurts family-owned farms.

The House Finance Committee approved a bill Wednesday to end the state's estate tax.

State law exempts the first $5.25 million of the estate of someone who dies, just like the federal estate tax. A decision last month by Congress means estates could be forced to pay additional state taxes unless laws are changed.

Democrats opposing the bill say the current tax affects less than 1 percent of estates. They say the change would cost the state $52 million next year.

Senate leader Phil Berger said this week his idea of fair tax reform would include repealing the estate tax.