N Carolina revenues surged with new year, but does it last?
RALEIGH, N.C. (AP) — Tax money stuffed North Carolina’s coffers as the calendar turned to 2018, but that alone doesn’t mean the state will have a significant surplus when the fiscal year ends in June.
State Budget Director Charlie Perusse (per-ROOS’) says individuals paid $165 million more in estimated tax payments during December and January than previously projected.
Perusse’s office believes the increase occurred largely because people overpaid estimated state taxes around the new year to deduct more on 2017 federal income tax returns, before the federal tax overhaul law begins with 2018 returns. Perusse says stock market performance also contributed to the uptick.
Perusse expects the payment surge to mean lower payments and higher refunds in April. That could eat away revenue growth.
Through December, state tax collections were basically even with projections.