State Revenue Down $400 Million From Last Year
A new report out shows that through third quarter state revenue is down nearly $400M from last year. This is due to the tax reform plan that Gov. McCrory claimed would be revenue neutral. From WFAE's article,
North Carolina's tax revenues are down almost $400 million compared to the same period last year. That's according toa report the Office of the State Controller released Thursday on the first four months of the state's fiscal year.
The roughly $400 million represents a 6 percent drop in tax revenue from July through October compared to the same period last year.
The main difference between now and then is that Republican state lawmakers cut personal and corporate income taxes and expanded the sales tax base.
Lee Roberts is North Carolina budget director.
"The intention was for the increased sales tax revenues to make up for the lost personal income tax and corporate income tax revenue," Roberts says. "We are seeing a significant upsurge in collections from sales tax."
But it's not enough; it only covers about half what the state has lost in income tax revenue.
Roberts says it's too early to tell if North Carolina will miss its budget. He says the lion's share of income tax revenue comes in from February to April, when residents file their returns.