North Carolina SB 967: Budget Requirement for Tax Triggers.

Bill Text

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S 1
SENATE BILL 967

Short Title: Budget Requirement for Tax Triggers. (Public)
Sponsors: Senators Grafstein and Garson (Primary Sponsors).
Referred to: Rules and Operations of the Senate
May 4, 2026
*S967-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO DISALLOW TAX RATE MODIFICATIONS IN THE ABSENCE OF A 2
COMPREHENSIVE BUDGET SPENDING PLAN. 3
The General Assembly of North Carolina enacts: 4
SECTION 1. G.S. 105-153.7(a1) reads as rewritten: 5
"(a1) Rate Reduction Trigger. – Notwithstanding the tax rates set out in subsection (a) of 6
this section, if the General Assembly has ratified a Current Operations Appropriations Act, as 7
defined in G.S. 143C-1-1, by July 1 of the fiscal year set out below and if total General Fund 8
revenue in a that fiscal year set out below exceeds the trigger amount indicated for that fiscal 9
year, then the applicable tax rate for the indicated and subsequent tax years shall be equal to the 10
greater of (i) the prior taxable year's rate decreased by one-half percentage point (0.50%) or (ii) 11
two and forty-nine hundredths percent (2.49%). For purposes of this subsection, total General 12
Fund revenue is the amount stated in the final accounting of total General Fund Reverting Net 13
Tax and Non-Tax Revenues for the fiscal year, as reported by the Office of State Controller in 14
August following the end of the fiscal year. 15
Fiscal Year Trigger Amount Taxable Year Beginning 16
FY 2025-2026 $33,042,000,000 In 2027 17
FY 2026-2027 $34,100,000,000 In 2028 18
FY 2027-2028 $34,760,000,000 In 2029 19
FY 2028-2029 $35,750,000,000 In 2030 20
FY 2029-2030 $36,510,000,000 In 2031 21
FY 2030-2031 $38,000,000,000 In 2032 22
FY 2031-2032 $38,500,000,000 In 2033 23
FY 2032-2033 $39,000,000,000 In 2034" 24
SECTION 2. This act is effective when it becomes law. 25