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S967 • 2025

Budget Requirement for Tax Triggers.

Budget Requirement for Tax Triggers.

Budget Taxes
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Grafstein, Garson, Batch
Last action
2026-05-04
Official status
Ref To Com On Rules and Operations of the Senate
Effective date
Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

Budget Requirement for Tax Triggers.

Budget Requirement for Tax Triggers.

What This Bill Does

  • Budget Requirement for Tax Triggers.

Limits and Unknowns

  • This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

  1. 2026-05-04 Senate

    Ref To Com On Rules and Operations of the Senate

  2. 2026-05-04 Senate

    Passed 1st Reading

  3. 2026-04-30 Senate

    Filed

Official Summary Text

Budget Requirement for Tax Triggers.

Current Bill Text

Read the full stored 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 T AX RATE MODIFICATION S 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 Appropriat ions 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