North Carolina Sen. Craven tax and revenue modification bill passes House and Senate

Passed bill sponsored by State Sen. David W. Craven Jr. aims to modify North Carolina’s tax and revenue laws. Craven’s bill seeks to update personal income tax rules, expand taxes on short-term car rentals, and revise property tax regulations, according to the North Carolina State Senate.

In the House, 44 Democrats and 65 Republicans voted in favor of the bill, while four Democrats opposed it.

Meanwhile, in the Senate, 15 Democrats and 27 Republicans voted in favor of the bill.

Craven filed the bill in the North Carolina Senate on March 25 during the 2025 regular session.

The legislation, known as SB 595, was passed on June 25 during the 2025 regular session.

According to the North Carolina General Assembly site, the bill’s official text 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.

The bill was sponsored by Sen. Tom McInnis (Republican-21st District) and Sen. David W. Craven, Jr. (Republican-29th District).

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.

Craven graduated from the University of North Carolina Charlotte in 2012 with a BA.

Craven, a Republican, was elected to the North Carolina State Senate in 2023 to represent the state’s 29th Senate district, replacing previous state senator Steven Jarvis.