North Carolina passes new laws effective January 1
Published 12:28 pm Friday, January 3, 2025
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On January 1, several new laws went into effect in North Carolina. Here’s a breakdown of some key laws impacting residents across the state.
Despite facing fierce opposition, Senate Bill 382, the third Helene relief bill, was set to become law. While it aims to provide disaster recovery funding, much of its content raises alarm bells about shifts in state power. A critical point of contention—requiring election boards to finish counting provisional ballots by 5 p.m. on the third business day after elections—has sparked concern. Critics argue that local boards lack the resources to meet this demand, while proponents claim that faster results are a matter of voter rights.
Another notable law, Senate Bill 452, raises the minimum liability insurance requirements for drivers in North Carolina from $30,000 to $50,000 per person and $60,000 to $100,000 per accident. This is a crucial improvement for protecting motorists, especially vulnerable road users. While Gov. Cooper vetoed the bill due to associated provisions affecting school athletics, he acknowledged the need for stronger auto insurance coverage. Advocates for safe driving applauded this reform, viewing it as a necessary measure for enhancing road safety.
Under House Bill 259, North Carolinians can anticipate a reduction in personal income tax rates, decreasing from 4.5% in 2024 to 4.25% in 2025, with a long-term goal of dropping to 3.99%. Although this reduction may seem beneficial, it’s important to note that Gov. Cooper vetoed this bill in October 2023. Nevertheless, proponents argue that lower taxes will provide crucial relief for working families, while critics worry about potential cuts to vital public services funded by these tax revenues.
Finally, Senate Bill 527 introduces a significant change in the alcohol tax structure. Liquor sales exceeding $50,000 will be exempt from the existing 30% excise tax, which some argue favors large retailers over small businesses. Gov. Cooper signed this bill into law after it garnered bipartisan support, emphasizing that capping the maximum tax at $1,000 for qualifying liquor is intended to encourage economic activity within the industry. However, the implications for public health and safety should not be overlooked, especially given concerns about substance abuse.
Residents can visit the North Carolina General Assembly website for a complete list of new legislation.