Modify Insufficient Funds Tax Payment Fee
Plain English Summary
This bill changes the penalty for tax payments made with checks or electronic transfers that fail due to insufficient funds or nonexistent accounts from a variable amount (the greater of $25 or 10% of the payment, up to $1,000) to a flat $35 fee. The change takes effect July 1, 2025.
Arguments in Favor
Supporters argue that a flat $35 penalty is simpler and more predictable for taxpayers compared to the current variable formula. They contend this streamlines tax collection administration for the state and provides clearer expectations about penalties when payment issues occur.
Arguments Against
Opponents may argue that the flat $35 fee could be too lenient for large failed payments, potentially losing revenue the state would have collected under the old 10% formula for major transactions. They might also contend that removing the variable penalty structure eliminates incentives for taxpayers to ensure sufficient funds for larger tax payments.
AI-generated analysis based on bill text. Always verify with official sources at ncleg.gov. This is not legal or political advice.
Sponsors
Primary Sponsor
Senator · District 46
Primary Sponsor
Senator · District 49
Primary Sponsor
Senator · District 48
