Fiscal Research Division _ Economy and Taxation
Finance Committee
FY 2012-13 Highlights
Fiscal Brief October 2012
The North Carolina General Assembly House and Senate Finance Committees address changes to state tax law. This
fiscal brief highlights the tax law changes enacted during the 2012 Session.
Actual and Projected General Fund Tax and Non-Tax Revenue Sources since FY 2009-10,
($ In Millions)
Actual
Actual
Actual
Projected
FY 2009-10
FY 2010-11
FY 2011-12
FY 2012-13
Personal Income
9,048
9,735
10,272
10,520
Sales and Use
5,565
5,873
5,258
5,459
Corporate Income
1,198
1,014
1,133
1,075
Other1
2,700
2,472
2,577
2,651
Total
$18,511
$19,094
$19,239
$19,705
1 "Other" includes other taxes and non-tax revenue sources
S.L. 2012-142, Modify 201 1 Appropriations Act (H.B.
950), as amended by S.L. 2012-145,
Modifications/2012 Appropriations Act (S.B. 187),
reduced FY 2012-13 expenditures by $5.75 million.
This $5.75 million reduction in General Fund
Availability allowed the General Assembly to enact
S.B. a $2.6 million reduction in personal income tax
collections and a $3.15 million reduction in sales and
use tax collections for FY 2012-13. The $5.75 million
reduction in General Fund availability during the
2012-13 fiscal year can be attributed to three tax
credits/economic development incentives: 1) the Work
Opportunity Tax Credit Extension (included in S.L.
2012-36, H.B. 1025), 2) the Tax Deduction for
Education Supplies (included in S.L. 2012-74, H.B.
1015), and 3) the Sales Tax Refund Application for
Passenger Air Carriers (included in S.L. 2012-74, H.B.
1015).
This Fiscal Brief provides an overview of the three tax
law changes alongside summaries of other legislation
enacted by the 2012 House and Senate Finance
Committees. The major decisions of the House and
Senate Finance Committees were enacted through five
pieces of legislation:
• S.L. 2012-36 (H.B. 1025) Extend Tax
Provisions,
Revenue Outlook and Finance Overview
The revised consensus revenue estimate continues to
maintain a cautious approach to the State’s fiscal
outlook, while slightly increasing forecasted
collections. The North Carolina economy appears to
be returning to the pre-recession employment and
population growth levels seen in 2007.
Final collections exceeded the original FY 2011-12
forecasts by two percent. The increase stemmed from
modest growth in employment and personal income.
Tax and Non-Tax General
Fund Revenue Sources
FY 2011-12
