Budget Requirement for Tax Triggers.

This bill requires the North Carolina General Assembly to adopt a full spending plan before it can lower tax rates. If the state collects more revenue than specific thresholds set for each fiscal year, the income tax rate will automatically decrease by 0.5% or drop to a minimum of 2.49%, whichever is higher. These automatic reductions would take effect in the tax years following the fiscal year in which the revenue targets are exceeded, starting in 2027. The law applies to future tax years through 2034 and uses final revenue figures reported by the Office of State Controller to determine if the trigger is met.