NC Tax Revenues Still Down But Not As Much

Mar 10, 2015

North Carolina's gap in tax revenue compared to the year before keeps getting smaller. The Office of the State Controller reported Tuesday that tax revenues are still down though.

North Carolina has been consistently short on tax revenues this fiscal year. That's largely because of income tax cuts for people and corporations championed by the state's Republican leaders.

From July through January, the state collected 4 percent less in taxes than the same period a year ago. That gap was down to 1 percent through February, according to the latest report. 

The report also shows the state's unreserved fund balance is in the negative right now. Deputy State Controller Anne Godwin says that's not unusual this time of year. 

"In the months of February and March, our cash flow runs low due to the tax refunds going out," she says. "But in April, when the tax refunds that are due to the state start coming in, it balances it back out."

The state legislature's fiscal research team also estimates North Carolina is in better shape than it was a month ago. It says revenues are now about $160 million below target.