Rep. Pierce files bill in North Carolina House to allow tax deduction for labor dues

A new bill filed by State Rep. Garland E. Pierce in the North Carolina House seeks to provide financial relief by allowing taxpayers to deduct labor organization membership dues from their taxable income, according to the North Carolina State House.

The bill, filed as HB 179 on Feb. 24 during the 2025 regular session, was formally listed with the short title: ‘Labor Org. Membership Dues Tax Deductible.’

The following is our breakdown, based on the actual bill text, and may include interpretation to clarify its provisions.

In essence, this bill amends G.S. 105-153.5(b) to allow North Carolina taxpayers to claim a tax deduction for labor organization membership dues starting in the taxable year beginning on or after Jan. 1, 2026. The bill specifies that “labor organization membership dues” include dues, fees, assessments, or other monies required as a condition of membership or participation in a labor organization, as defined in G.S. 168A-3. This legislative change aims to provide financial relief to individuals by reducing their taxable income by the amount they pay in required labor organization dues.

Of the four sponsors of this bill, Rodney D. Pierce proposed the most bills (six) during the 2025 regular session.

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.

Pierce graduated from Fayetteville State University with a BS.

Pierce, a Democrat, was elected to the North Carolina State House in 2005 to represent the state’s 48th House district, replacing previous state representative Donald Bonner.