NORTH CAROLINA GENERAL ASSEMBLY

1975 SESSION

CHAPTER 792

SENATE BILL 582

AN ACT TO PROVIDE FOR INFORMATION ON STATE TAX EXPENDITURES AS RESOURCE DATA IN CONNECTION WITH THE STATE BUDGET.

The General Assembly of North Carolina enacts:

Section 1.  Part I of Article 4 of Chapter 143 of the General Statutes of North Carolina is hereby amended by adding a new section G.S. 143B-221.1 to read as follows:

"§ 143B-221.1.  Department of Revenue ‑ tax expenditure report. — The Secretary of Revenue shall prepare a biennial State tax expenditure report to be submitted to the Director of the Budget and the Advisory Budget Commission on or before October 1 of each even-numbered year and to be submitted to the General Assembly at the convening of the regular legislative session on each odd-numbered calendar year. The report shall contain a list of 'tax expenditures' contained in Subchapters I, V, and VIII of Chapter 105 of the General Statutes of North Carolina. For the purposes of the section a 'tax expenditure' shall mean a provision in the tax laws which by exemption, exclusion, deduction, allowance, credit, deferral, refund, preferential tax rate, or other device, reduces the amount of net tax revenues that would otherwise be collected, and which is for the purpose of attaining some State policy objective or objectives, either implied or stated.

The biennial report of the Secretary herein required shall include estimates of the amount by which revenue is reduced by each 'tax expenditure', to the extent that such estimates can be ascertained from examination of the records of the Department of Revenue, without incurring any additional costs of operating the Department of Revenue (except the cost of publishing said report), other than amounts specifically appropriated for that purpose and in the absence of such appropriation, the Secretary of Revenue shall not be required to devote any resources of the Department of Revenue for that purpose if doing so will impair the performance of his other duties and responsibilities.

The departments, bureaus, divisions, officers, commissions, institutions, and other agencies of the State shall, upon request, furnish the Secretary of Revenue, in such form and at such time as he may direct, any information required to facilitate the completion of the tax expenditure report.

The purpose of the tax expenditure report is to facilitate a continuous evaluation and review through the budgetary process of the impact of both direct State appropriations and tax expenditures on the attainment of State policy objectives."

Sec. 2.  This act shall become effective July 1, 1975.

In the General Assembly read three times and ratified, this the 24th day of June, 1975.