North Carolina tax system

After earlier projections that showed North Carolina may finish this fiscal year with a budget shortfall, state economists are now saying the state will come out ahead. A consensus forecast released Wednesday projects a surplus of $400 million or about 2 percent.

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.

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A report from the state controller Wednesday shows North Carolina's tax revenues are down $477 million compared to the same period a year ago. 

The $477 million represents a 4 percent drop in tax revenue. That's actually an improvement from a few months ago, when the state was down 6 percent.

  North Carolina's main pot of money increased about 19 percent during the last fiscal year despite a decrease in revenues. That's according to the state controller's annual financial report released Monday.

You know how when revenues are down, a business can still turn a profit if it cuts expenses? That's basically what North Carolina did with its General Fund, the pot of money the state uses to pay for most of its programs.

For the fiscal year that ended in June, North Carolina's revenues came in about $450 million short of projections.

Alan Cleaver / Flickr

North Carolina's tax revenues are down almost $400 million compared to the same period last year. That's according to a report the Office of the State Controller released Thursday on the first four months of the state's fiscal year.

Taxes in North Carolina are going to change. The North Carolina House and Senate on Tuesday tentatively passed tax overhaul legislation, and Governor Pat McCrory says he'll sign it.

As lawmakers have considered multiple approaches to changing the state's tax system over the past few months, a variety of people and organizations have swooned over or screamed against the proposals.

So now that Republican leaders have agreed on a final plan, who loves it, who hates it, and who's mixed on it? 

Now the North Carolina House and Senate have passed their own plans to overhaul the state's tax system. The Senate gave final approval to its version Wednesday morning.

The North Carolina Senate tentatively passed a bill today to overhaul the state's tax code.

The Senate worked through four earlier versions of a tax overhaul before settling on this one. The fifth edition is much closer to the bill that passed the House, and Senate Republican Leader Phil Berger says that's the point.

"There's been a good deal of work done on trying to find some common ground on where the Senate was and where the House has been," Berger said on the Senate floor Tuesday.

North Carolina House Republicans presented Monday afternoon their proposed budget for the next two years. In total, the budget spends $20.6 billion.

“In the first year we spend around $12 million less than the Senate and around $188 million less than the governor,” said Rep. Nelson Dollar, the chairman of the House Appropriations Committee.

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  Proposals to overhaul North Carolina's tax code could discourage people from giving to charities, turn nonprofits into tax collectors, and make it more difficult for some organizations to provide services. Those are a few concerns the N.C. Center for Nonprofits raised Monday.