Modify Insufficient Funds Tax Payment Fee.

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S 1
SENATE BILL 96

Short Title: Modify Insufficient Funds Tax Payment Fee. (Public)
Sponsors: Senators Mayfield, Moffitt, and Daniel (Primary Sponsors).
Referred to: Rules and Operations of the Senate
February 17, 2025
*S96-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO MODIFY TO THIRTY-FIVE DOLLARS THE PENALTY FOR A TA X 2
PAYMENT THAT IS RETURNED FOR INSUFFICIENT FUNDS OR NONEXISTENCE 3
OF AN ACCOUNT. 4
The General Assembly of North Carolina enacts: 5
SECTION 1. G.S. 105-357(b)(2) reads as rewritten: 6
"(2) Penalty. – In addition to interest for nonpayment of taxes provided by 7
G.S. 105-360 and in addition to any criminal penalties provided by law, the 8
penalty for presenting in payment of taxes a check or electronic funds transfer 9
that is returned or not completed because of insufficient funds or nonexistence 10
of an account of the drawer or transferor is twenty-five dollars ($25.00) or ten 11
percent (10%) of the amount of the check or electronic invoice, whichever is 12
greater, subject to a maximum o f one thousand dollars ($1,000). thirty-five 13
dollars ($35.00). This penalty does not apply if the tax collector finds that, 14
when the check or electronic funds transfer was presented for payment, the 15
drawer of the check or transferor of funds had sufficient funds in an account 16
at a financial institution in this State to make the payment and, by 17
inadvertence, the drawer of the check or transferor of the funds failed to draw 18
the check or initiate a transfer on the account that had sufficient funds. This 19
penalty shall be added to and collected in the same manner as the taxes for 20
which the check or electronic payment was given." 21
SECTION 2. This act becomes effective July 1, 2025, and applies to checks or 22
electronic funds transfers presented for payment of taxes on or after that date. 23