NC collections may surge $700M above projections

RALEIGH, N.C. (AP) — North Carolina tax collections are on track for the state to post its highest surplus since the Great Recession.

The legislature’s chief economist told lawmakers on Monday the state may collect over $700 million above what budget-writers projected when they approved the current-year spending plan last summer. That’s equal to roughly a 3% increase.

Economist Barry Boardman attributed much of the surge in over-collections to final individual income tax payments made in April, particularly from transactions like capital gains and dividends. These April payments were 46% above what was collected last year. Corporate income tax payments in April also were 42% higher than last year.

The extra cash gives Republican legislators more options in fashioning a final two-year budget this summer through spending, saving or further tax breaks.