AN ACT to disallow tax rate modifications in the absence of a comprehensive budget spending plan.

The General Assembly of North Carolina enacts:

SECTION 1.  G.S. 105‑153.7(a1) reads as rewritten:

(a1)    Rate Reduction Trigger. – Notwithstanding the tax rates set out in subsection (a) of this section, if the General Assembly has ratified a Current Operations Appropriations Act, as defined in G.S. 143C‑1‑1, by July 1 of the fiscal year set out below and if total General Fund revenue in a that fiscal year set out below exceeds the trigger amount indicated for that fiscal year, then the applicable tax rate for the indicated and subsequent tax years shall be equal to the greater of (i) the prior taxable year's rate decreased by one‑half percentage point (0.50%) or (ii) two and forty‑nine hundredths percent (2.49%). For purposes of this subsection, total General Fund revenue is the amount stated in the final accounting of total General Fund Reverting Net Tax and Non‑Tax Revenues for the fiscal year, as reported by the Office of State Controller in August following the end of the fiscal year.

Fiscal Year                     Trigger Amount             Taxable Year Beginning

FY 2025‑2026                $33,042,000,000                         In 2027

FY 2026‑2027                $34,100,000,000                         In 2028

FY 2027‑2028                $34,760,000,000                         In 2029

FY 2028‑2029                $35,750,000,000                         In 2030

FY 2029‑2030                $36,510,000,000                         In 2031

FY 2030‑2031                $38,000,000,000                         In 2032

FY 2031‑2032                $38,500,000,000                         In 2033

FY 2032‑2033                $39,000,000,000                         In 2034

SECTION 2.  This act is effective when it becomes law.