S.967

Budget Requirement for Tax Triggers

Introduced·4/30/26

North Carolina S967 mandates tax rate reductions if certain revenue thresholds are met and a budget is ratified.

North Carolina S967 establishes a tax rate reduction trigger linked to specific revenue thresholds and the ratification of a budget. If the General Assembly ratifies a Current Operations Appropriations Act by July 1 and total General Fund revenue exceeds the specified trigger amount for the fiscal year, the applicable tax rate will be reduced. The reduction is the greater of a half-percentage-point decrease from the prior year's rate or a minimum rate of 2.49%. This applies to fiscal years starting from 2025-2026 through 2032-2033, with increasing revenue thresholds each year.

Included in complete analysis

  • Overview
  • Core Provisions
  • Implementation
  • Impact
  • Legal Framework
  • Critical Issues

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Where it stands

Current
Rules and Operations of the Senate Committee
Next
Committee decision

Sponsors

DDD
3
0
Democratic CaucusRepublican Caucus

History

May 4

Senate

Passed 1st Reading

May 4

Senate

Ref To Com On Rules and Operations of the Senate

Apr 30

Senate

Filed