GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S 1
SENATE BILL 967
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Short Title: Budget Requirement for Tax Triggers. |
(Public) |
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Sponsors: |
Senators Grafstein and Garson (Primary Sponsors). |
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Referred to: |
Rules and Operations of the Senate |
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May 4, 2026
A BILL TO BE ENTITLED
AN ACT to disallow tax rate modifications in the absence of a comprehensive budget spending plan.
The General Assembly of North Carolina enacts:
SECTION 1. G.S. 105‑153.7(a1) reads as rewritten:
"(a1) Rate Reduction
Trigger. – Notwithstanding the tax rates set out in subsection (a) of this
section, if the General Assembly has ratified a Current Operations
Appropriations Act, as defined in G.S. 143C‑1‑1, by July 1 of
the fiscal year set out below and if total General Fund revenue in a that
fiscal year set out below exceeds the trigger amount indicated for
that fiscal year, then the applicable tax rate for the indicated and subsequent
tax years shall be equal to the greater of (i) the prior taxable year's rate
decreased by one‑half percentage point (0.50%) or (ii) two and forty‑nine
hundredths percent (2.49%). For purposes of this subsection, total General Fund
revenue is the amount stated in the final accounting of total General Fund
Reverting Net Tax and Non‑Tax Revenues for the fiscal year, as reported
by the Office of State Controller in August following the end of the fiscal
year.
Fiscal Year Trigger Amount Taxable Year Beginning
FY 2025‑2026 $33,042,000,000 In 2027
FY 2026‑2027 $34,100,000,000 In 2028
FY 2027‑2028 $34,760,000,000 In 2029
FY 2028‑2029 $35,750,000,000 In 2030
FY 2029‑2030 $36,510,000,000 In 2031
FY 2030‑2031 $38,000,000,000 In 2032
FY 2031‑2032 $38,500,000,000 In 2033
FY 2032‑2033 $39,000,000,000 In 2034"
SECTION 2. This act is effective when it becomes law.