RALEIGH, N.C. – The General Assembly’s Fiscal Research Division and the Office of State Budget and Management released their consensus revenue forecast on Thursday, predicting North Carolina’s 2016-17 tax collections would be $552.5 million above budget projections for the fiscal year.
According to the revenue report, the anticipated surplus is “the result of stronger-than-expected wage growth increasing both Personal Income tax and Sales tax collections.” At this current rate of growth, the revenue forecast predicts the 2018-19 fiscal year surplus is estimated to approach $1 billion.
Senior Appropriations Committee Chairman Nelson Dollar released a statement:
“This positive revenue forecast is more good news for North Carolina and maintains our status as one of the fastest growing economies in the United States. The report is further evidence that tax relief, regulatory reform and responsible budgeting by the state General Assembly have turned our economy around by encouraging innovation, attracting entrepreneurship and creating a competitive business climate for our rapidly growing population.”
“North Carolina must maintain its commitment to creating opportunity and commercial growth through a commonsense, conservative approach to state government. This considerable revenue surplus reflects the significant impact our reforms have had on wage gains, job creation and tax collections for our state. These aren’t just figures in a report – these facts demonstrate our policies are working and making North Carolina an exciting place for newcomers and residents alike to start a family, grow a business and seek prosperity.”