North Carolina SB 1016: Fair Share for Public Schools Act.

Bill Text

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S 1
SENATE BILL 1016

Short Title: Fair Share for Public Schools Act. (Public)
Sponsors: Senators Chitlik and Garrett (Primary Sponsors).
Referred to: Rules and Operations of the Senate
May 4, 2026
*S1016-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO IMPOSE A SEVEN PERCENT INCOME TAX ON INCOME THAT EXCEEDS 2
ONE MILLION DOLLARS AND TO DISTRIBUTE THOSE PROCEEDS TO THE 3
PUBLIC SCHOOL FUND. 4
The General Assembly of North Carolina enacts: 5
SECTION 1. G.S. 105-153.7 reads as rewritten: 6
"§ 105-153.7. Individual income tax imposed. 7
(a) Tax. – A tax is imposed for each taxable year on the North Carolina taxable income 8
of every individual. The tax shall be levied, collected, and paid annually. Except as otherwise 9
provided in subsection (a1) subsections (a1) and (a2) of this section, the tax is a percentage of 10
the taxpayer's North Carolina taxable income computed as follows: 11
... 12
(a2) Rate on High Income. – A tax is imposed for each taxable year on the North Carolina 13
taxable income of every individual that exceeds one million dollars ($1,000,000) at a rate of 14
seven percent (7%). The tax imposed under this subsection shall be levied, collected, and paid 15
annually. The rate reduction trigger under subsection (a1) of this section shall not apply to the 16
tax rate imposed under this subsection. Annually, the Secretary shall distribute the taxes collected 17
under this subsection, less the Department of Revenue's allowance for administrative expenses 18
associated therewith, to the State Public School Fund for allotment by the State Board of 19
Education, on behalf of the counties, to local school administrative units on a per pupil basis in 20
accordance with Article IX, Section 7(b) of the North Carolina Constitution. The Secretary may 21
retain the Department of Revenue's cost of collection, not to exceed one hundred thousand dollars 22
($100,000) a year, as reimbursement to the Department. 23
...." 24
SECTION 2. This act is effective for taxable years beginning on or after January 1, 25
2026. 26