North Carolina collected $400.2 million more in revenue than forecast at the end of the 2017-18 Fiscal Year as “a steadily growing economy produced yet another fiscal surplus,” according to a new report from the state’s nonpartisan Fiscal Research Division.
The state collected $176.1 million more in individual income tax than it forecast and $63.2 million more in franchise taxes than expected by June 30, 2018, the end of FY 2017-18.
Insurance gross premiums taxes increased 15%, or $74 million, over the previous year. Revenue from non-tax sources was nearly 10% over the state’s target.
“Tax relief for families and businesses, combined with smart state budgets that make education a top priority, are a winning combination for North Carolina’s economic growth,” said state Speaker of the House Tim Moore.
The state’s revenue forecast for FY 2018-19 was also revised upwards by $276.5 million, according to the report.
“Most of the increase in the revenue forecast was from the Individual Income tax, and more specifically from the increase in non-wage income such as business and investment income,” the report from the state’s nonpartisan Fiscal Research Division said.
The North Carolina General Assembly’s Republican leaders enacted historic tax relief this decade to save state taxpayers billions of dollars, encourage economic growth and spur job creation.
Since 2011 the General Assembly has levied a lower sales tax rate, personal income tax rate and corporate tax rate on North Carolina families and businesses, while tripling the zero-tax bracket for low-income families.