Four New Laws Taking Effect in North Carolina on January 1, 2025
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Four New Laws Taking Effect in North Carolina on January 1, 2025
The start of the new year brings significant legislative changes for residents of North Carolina.
Four notable laws, covering election processes, insurance requirements, taxes, and alcohol regulations, will take effect on January 1, 2025.
Take a look at the new laws below.
Third Helene Relief Bill
Part of the controversial Third Helene Relief Bill (SB 382) will require boards of elections to finish counting provisional ballots by 5 p.m. on the third business day after an election. While the bill is intended to expedite election results, opponents argue that many county boards lack the resources to meet this tight deadline. This legislation faced intense debate and legal challenges, with both Governor Roy Cooper and Governor-elect Josh Stein raising concerns over its broader implications for state leadership power shifts.
Changes to Liability Insurance Requirements
Under SB 452, the minimum auto liability insurance requirements are increasing. Drivers will now need coverage of $50,000 per person (up from $30,000) and $100,000 per accident (up from $60,000). This change also applies to uninsured motorists. Despite Governor Cooper’s veto of the bill—mainly over unrelated provisions tied to school athletics—he acknowledged the importance of this adjustment for providing better protection to North Carolina drivers.
Reduction in Personal Income Tax
North Carolinians will see a slight drop in their personal income tax rate, which will decrease from 4.5% in 2024 to 4.25% in 2025. This change, part of House Bill 259, is part of a broader goal to reduce the rate to 3.99% in future years. The bill, vetoed by Governor Cooper in 2023, gained momentum in the legislature where tax reductions have been a consistent focus.
New Alcohol Tax Regulations
Senate Bill 527 introduces an exemption from the 30% excise tax on liquor sold for $50,000 or more. The legislation, which also caps the possible tax at $1,000 for qualifying liquor, is expected to incentivize higher-end liquor sales within the state. With bipartisan support in both the House and Senate, the law reflects efforts to modernize alcohol regulations and boost industry growth.
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