Federal tax changes won't affect state coffers dramatically

April 11, 2018 - 7:01 pm
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RALEIGH, N.C. (AP) — North Carolina's nonpartisan legislative staffers say cash levels in state coffers won't be significantly altered by last year's federal tax overhaul compared to other states due to tax changes the General Assembly made years ago.

The explanation came during a revenue laws committee Wednesday. Members debated legislation that would align state tax laws to many new federal rules Congress approved on deductions, expenses and other changes. A staff memo says passing it would result in roughly $120 million in additional state revenues through mid-2020, primarily from business and investment tax changes.

Staffers say state changes since 2011 — made by Republicans — have diminished how the federal changes affect North Carolina revenues. For example, North Carolina taxes are calculated on income totals before certain federal deductions Congress curbed are included.

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