Tax revenue still on pace with last year

Tax collections for the six months from April through September continue to track closely with the same period a year ago ($13.145 billion in 2020 vs $13.225 billion in 2019, -0.6%), according to the new General Fund Monthly Report from the Office of the State Controller.

Tax revenue in the final quarter of FY2019-20 fell 19% to $6.184 billion from $7.610 billion the year before. Revenue in July made up nearly the entire difference, reaching $3.099 billion compared to $1.891 billion in 2019 with the deadline for income tax filing and payment.

Appropriations have remained more consistent thanks to the large unreserved fund balance, but are also down 1.6%, from $11.702 billion to $11.511 billion.

North Carolina continues to lag on opening schools and businesses. More businesses are converting temporary furloughs into permanent layoffs, or closing their doors permanently. Despite the significant challenges that remain, people have been returning to a less-locked-down version of daily life.