There are two issues legislators plan to deal with in May that will have a direct impact on retailers. Draft legislation has been approved by a study committee which would require alcohol retailers to be in compliance with state tax laws as a condition of being permitted. State revenue officials say retailers owe the state more than $45 million in unpaid sales or withholding taxes.

34% of all grocery stores and restaurants are out of compliance, along with 39% of all taverns, night clubs and bars. The N.C. Restaurant and Lodging Association is gearing up to oppose the proposed legislation.

Meanwhile, a coalition of retailers is asking legislators to change the law concerning local privilege license taxes. Cities are currently given wide latitude for this tax. For instance, in Durham, Target must pay a $25,000 tax. Sen. Bill Rabon (R—Brunswick) calls this a “license to gouge”. What has been proposed so far is a flat tax of $100 per business.