As the new year begins, several new laws are set to take effect in North Carolina on January 1, 2025. These laws will impact a variety of areas from taxes to car insurance, juvenile laws, and even ticket prices. If you’re living in North Carolina or planning to move there, here’s a quick overview of the key changes that could affect you.
1. Income Tax Rate Decrease
A major change that’s good news for your wallet is the decrease in income tax rates. The state has passed a new law under House Bill 259, which will lower the individual income tax rate from 4.5% to 4.25%. This means that for the year 2025, you’ll pay less in state income tax. The tax rate will continue to decrease in the coming years, with the next reduction planned for 2026, when the tax rate will drop to 3.99%. This change is part of North Carolina’s ongoing effort to reduce taxes and put more money in the pockets of residents.
2. Auto Insurance Laws Changing
If you drive in North Carolina, you will need to pay attention to new rules about auto insurance. Senate Bill 452 increases the minimum amount of liability insurance required for drivers. From January 2025, the new minimum coverage for one person in an accident will be $50,000, and for multiple people, it will be $100,000. Additionally, property damage coverage will also rise to $50,000. These changes are designed to help provide more financial protection for drivers and victims of accidents. Moreover, the law also updates how underinsured motorist coverage is calculated, ensuring that all the damages a person faces after an accident are covered.
3. Who is a Juvenile?
A new law, HB 834, has expanded the definition of who qualifies as a delinquent juvenile. In the past, juveniles who committed crimes were typically those aged 16 to 18. However, under this new law, juveniles between the ages of 8 to 10 years old can now be considered delinquent if they commit serious crimes. Also, juveniles aged 10 to 16 who commit any crime or infraction are now clearly defined as delinquent under state law. This change is expected to affect how the court handles juvenile cases, especially in terms of transfers to adult courts.
4. Changes to Ticket Prices for Live Entertainment
Do you enjoy going to concerts, sports events, or theaters? Well, there’s a new law that will make buying tickets easier and more transparent. Senate Bill 607 requires all ticket sellers, whether they’re a venue, promoter, or resale website, to display the total price of a ticket from the beginning. This includes all fees like taxes and service charges. Sellers cannot suddenly increase the price once you start the buying process, except for certain charges like delivery fees. This law aims to prevent hidden fees that pop up unexpectedly during checkout. So now, when you buy tickets for live entertainment events, you’ll know exactly how much you’ll be paying upfront.
5. State Employees Health Insurance
North Carolina is changing the health insurance administrator for its state employees. For many years, Blue Cross NC has been managing health plans for teachers, state workers, and retirees. But starting in January 2025, Aetna will take over as the new administrator. This means changes to the network of providers available to state employees and retirees. Although Blue Cross NC initially fought against this change, it has now been confirmed that Aetna will handle the state’s health insurance coverage moving forward.
6. Campaign Contribution Limits Increase
For those interested in politics, there’s an important update regarding campaign donations. As of January 1, 2025, the contribution limit for candidates and political committees has increased. Individuals and committees can now contribute up to $6,800 to a political candidate or committee per election, up from $6,400. This change allows for more money to flow into state political campaigns and could influence election outcomes in the future.
(Source: newsbreak.com)
