Plain English Summary
This bill proposes a constitutional amendment that would lower North Carolina's maximum income tax rate from 7% to 3.5%. The amendment would be submitted to voters in the November 2026 election, and if approved, would take effect for tax years beginning January 1, 2027.
Arguments in Favor
Supporters argue that lowering the income tax cap allows North Carolinians to keep more of their earnings and stimulates economic growth by increasing consumer spending and business investment. They contend that lower taxes make the state more competitive in attracting and retaining workers and businesses compared to higher-tax states.
Arguments Against
Opponents worry that significantly reducing the income tax rate would substantially decrease state revenue needed to fund public schools, universities, healthcare, infrastructure, and other essential services. They argue that without corresponding spending cuts or new revenue sources, the state would face difficult choices between reducing services or running budget deficits.
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 7
Primary Sponsor
Senator · District 10
Primary Sponsor
Senator · District 11
Cosponsors (25)
Senator · District 31
Senator · District 46
Senator · District 35
Senator · District 1
Senator · District 29
Senator · District 33
Senator · District 3
Senator · District 45
Senator · District 25
Senator · District 34
Senator · District 37
Senator · District 2
Senator · District 12
Senator · District 48
Senator · District 8
Senator · District 50
Senator · District 43
Senator · District 4
Senator · District 36
Senator · District 44
Senator · District 24
Senator · District 9
Senator · District 26
Senator · District 47
Senator · District 30
Vote Breakdown (6 roll calls)
This bill was signed into law.
Final Vote
On: Third Reading
Party Breakdown