Governor Pat McCrory issued the following statement today regarding the news that North Carolina’s General Fund, in the final tally, has surpassed earlier projections by nearly $445 million — exceeding even the most recent estimates by another $45 million:
Final revenue figures for the fiscal year ending on June 30 reveal that North Carolina has a $445 million revenue surplus.
“The surplus is evidence that reforming the tax code and increasing competitiveness are strengthening North Carolina’s economy and putting more money into the budget of working families,” Governor McCrory said. “We must continue to be wise stewards of the taxpayers’ resources as well as maintain our efforts to make state government more efficient and responsive to the people.”
The surplus this fiscal year is predominately the product of strong growth in business income, which resulted in a surge of final payments this April. Tax payments in April were up 15 to 20 percent from last year, which was largely driven by increased business income and capital gains.
Final budget figures indicate that revenues have met the trigger required for further corporate tax relief under the 2013 tax reform plan. A one percent reduction in the corporate tax rate will become effective beginning January 1, 2016, making North Carolina’s corporate income tax rate the lowest top rate in the country at four percent.