North Carolina Lawmakers Introduce Bills on Gambling, Taxes, and More

North Carolina’s legislative session began on Wednesday with lawmakers filing a range of bills addressing gambling, taxation, and other state policies. While no votes are expected for several weeks, the introduction of these proposals offers insight into the topics likely to shape legislative discussions.

Gambling Loss Deduction Proposal

Rep. Erin Paré, a Holly Springs Republican recently named chair of the House Appropriations Committee, introduced House Bill 14 (HB 14) to permit state income tax deductions for gambling losses. The bill aligns state tax laws with federal regulations, which allow bettors who itemize their deductions to deduct losses up to the amount of their winnings.

Under current sports betting permit such deductions and that the bill seeks to “prevent confusion and surprise tax bills.”

The federal Internal Revenue Code’s Section 165(d) allows gambling losses to be deducted as long as taxpayers maintain accurate records. The proposed change would only affect individuals who choose to itemize their deductions rather than take the standard deduction.

House Bill 11 (HB 11), sponsored by Republican lawmakers Harry Warren and John Bell, proposes eliminating state income tax on reported tips. The measure, reflecting a national push by former President Donald Trump, would also allow tax deductions for overtime and up to $2,500 in bonus pay.

The bill would apply to 2025 tax filings and seeks to provide financial relief to workers who rely on tips and additional earnings. ers argue that tips should not be taxed as regular income, while opponents may raise concerns about potential revenue losses.

Effort to Remove Literacy Test Requirement

A group of Republican senators introduced Senate Bill 14 (SB 14) to eliminate the Jim Crow-era literacy test requirement from the state’s constitution. Though the requirement has been unenforceable since the Voting Rights Act of 1965, it remains in the constitution as a relic of discriminatory policies.

The bill proposes a 2026 referendum allowing voters to decide on its removal. Previous efforts to repeal the provision have failed, including a 1970 referendum where voters rejected the change.

Rep. Keith Kidwell reintroduced a bill (HB 5) to eliminate the permit requirement for concealed carry. The measure would allow anyone over 18 to carry a concealed firearm without a permit but would still keep the permit system in place for those who wish to obtain one for reciprocity in other states or for firearm purchases.

A similar bill advanced through committees in 2023 but ultimately stalled before reaching a final vote.

Republican Sen. Bobby Hanig proposed Senate Bill 20 (SB 20), which seeks to ban large-scale balloon releases, citing environmental and safety concerns. Balloons can pose risks to wildlife, cause power outages by entangling power lines, and degrade scenic areas.

If ed, violating the ban would result in a $250 fine. Exceptions would be made for hot air balloons and those used for scientific or meteorological purposes.

Standard Time Proposal

House Bill 12 (HB 12), sponsored by Warren and Bell, aims to establish year-round standard time in North Carolina. If ed, the measure would take effect in March 2026, eliminating the semi-annual time change between standard time and daylight saving time.

The debate over time changes has persisted nationally, with some preferring permanent daylight saving time for longer evenings and others favoring standard time for earlier daylight in the morning. A 2023 High Point University poll found mixed preferences among North Carolina residents, with just under half favoring year-round daylight saving time, while 21% ed permanent standard time.

House Bill 2 (HB 2) proposes requiring high schools to accept cash payments for athletic event entry fees. Rep. Reece Pyrtle introduced the measure in response to some schools switching to digital-only payment methods during the COVID-19 pandemic. The bill also includes provisions for free ission to seniors presenting a state-issued Tar Heel Card.

A similar bill ed both legislative chambers in a previous session but failed due to disagreements over amendments.

House Democrats, led by Rep. Pricey Harrison, introduced House Bill 20 (HB 20), also known as the Fair Maps Act, which calls for an independent redistricting commission. Currently, state lawmakers oversee redistricting, a process that has led to repeated legal challenges over alleged gerrymandering.

The proposed commission would be composed of citizens without political ties, including lobbyists or legislative staffers. Given the Republican majority in both chambers, the bill faces an uphill battle.

Democratic Push for Government Transparency

House Democrats are also working on a broader transparency bill aimed at restoring public access to legislative records and enhancing oversight of campaign finance laws. The initiative follows reports from The News & Observer highlighting concerns over transparency in state governance.

While unlikely to in the Republican-led General Assembly, the measure signals an ongoing effort to promote ability in government operations.

Despite from Paré and other legislators, HB 14 faces opposition from lawmakers who disapprove of expanding gambling-related policies. House Speaker Destin Hall acknowledged that revenue from sports betting has been strong but stated he would need to review the fiscal impact of allowing gambling loss deductions.

Senate leader Phil Berger expressed reluctance to amend the state tax code, saying,“Never been the policy in North Carolina to allow, at the state level, deduction of or the balancing of losses versus gains. I just don’t see where we need to change that policy.”

Despite the uncertainty, Paré remains committed to pushing the legislation forward, emphasizing its importance for fairness and clarity in tax policy.

Source:

”Tax-free tips? Deduction for gambling losses? NC lawmakers return with new ideas”, cdcgaming.com, January 29, 2025.