North Carolina Tax Bill Could Hit Nonprofits Hard

A bill in the N.C. Senate could raise a lot of revenue from large nonprofit organizations, especially hospitals, but groups representing private universities and other nonprofits are objecting as well. Nonprofits get refunds for state sales taxes they pay up to $31.7 million under current law. Senate Bill 700 would cut the refund cap to $70,370.

Nonprofits applied for $285 million in refunds on their 2012-13 taxes, said Sen. Andy Wells, R-Catawba County, sponsor of the bill. Hospitals accounted for about 80 percent of that, he said.