North Carolina 2021-2022 Session Status: In Committee 17 R cosponsors

SB 717 — Taxpayer Bill of Rights.

Last action — Passed 1st Reading

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  1. ✓
    Introduced
  2. 2
    In Committee
  3. 3
    Passed Senate
  4. 4
    Passed House
  5. 5
    To Executive
  6. 6
    Enacted

This bill died with 2021-2022 Session. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.

Bill Text

What changed in the latest version

16 added · 17 removed

Plain-language change summary

The recent changes to Bill SB 717 clarify how spending limits are determined and specify that these limits can only be changed with the approval of local voters. This means that any increase in spending must be backed by a majority vote from the community, ensuring that the decision reflects the will of the people affected. This amendment is important as it reinforces public control over government spending in local jurisdictions.

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FILED SENATE GENERAL ASSEMBLY OF NORTH CAROLINA Apr 15, 2021 S.B.
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 2021 S 1 SENATE BILL 717 Short Title:
717 SESSION 2021 PRINCIPAL CLERK S D SENATE BILL DRS45397-MCxfy-160 Short Title:
A BILL TO BE ENTITLED AN ACT TO AMEND THE NORTH CAROLINA CONSTITUTION TO PROVIDE FOR TAXPAYER PROTECTIONS THAT LIMIT THE GROWTH OF STATE SPENDING TO INFLATION PLUS POPULATION GROWTH, REQUIRE YEARLY DEPOSITS IN A SAVINGS RESERVE OR UNFUNDED LIABILITY RESERVE, RETURN EXCESS REVENUE TO TAXPAYERS, AND SUBMIT TAX INCREASES TO A VOTE OF THE PEOPLE.
Rules and Operations of the Senate April 19, 2021 A BILL TO BE ENTITLED AN ACT TO AMEND THE NORTH CAROLINA CONSTITUTION TO PROVIDE FOR TAXPAYER PROTECTIONS THAT LIMIT THE GROWTH OF STATE SPENDING TO INFLATION PLUS POPULATION GROWTH, REQUIRE YEARLY DEPOSITS IN A SAVINGS RESERVE OR UNFUNDED LIABILITY RESERVE, RETURN EXCESS REVENUE TO TAXPAYERS, AND SUBMIT TAX INCREASES TO A VOTE OF THE PEOPLE.
"Allowed State fiscal year spending"meanstheamountpermittedunderthis formulaifspending followedtheformulaevery year since the State fiscal year that began July 1, 2018.
"Allowed State fiscal year spending"meanstheamountpermittedunderthis formulaifspendingfollowedtheformulaevery year since the State fiscal year that began July 1, 2018.
TheGeneral Assemblymayvoteto increasethespending limit established under this section for a fiscal year.
TheGeneral Assemblymayvoteto increasethespendinglimit established under this section for a fiscal year.
*DRS45397-MCxfy-160* General Assembly Of North Carolina Session 2021 (2) The General Assembly may provide for the expenditure of funds from the Savings Reserve, decline to reserve funds to the Savings Reserve, or both.
*S717-v-1* General Assembly Of North Carolina Session 2021 (2) The General Assembly may provide for the expenditure of funds from the Savings Reserve, decline to reserve funds to the Savings Reserve, or both.
The constitutional powers of the Governor do not authorize (i) the expenditure of money in the Savings Reserve without an appropriation by the General Assembly or (ii) the diversion for other purposes of money appropriated from the Savings Reserve by the General Assembly.
The constitutional powers of the Governor do not authorize (i) the expenditure of money in the Savings Reserve without an appropriation bythe General Assemblyor (ii) the diversion for other purposes of money appropriated from the Savings Reserve by the General Assembly.
The power of taxation shall be exercised in a just and equitable manner, forpublic purposes only, and shall never besurrendered,suspended, or contracted away.
The power of taxation shall be exercised in a just and equitable manner, forpublic purposes only, and shall never besurrendered,suspended,or contracted away.
No law shall be enacted to impose or increase any tax, or to allow the counties, cities, or towns to do so, unless approved by a majority of the qualified voters of the jurisdiction to which the tax or increase pertains." SECTION 1.(c) Section 22(5) of Article II of the North Carolina Constitution reads as rewritten:
No law shall be enacted to impose or increase any tax, or to allow the counties, cities, or towns to do so, unless approved by a majorityof the qualified voters of the jurisdiction to which the tax or increase pertains." SECTION 1.(c) Section 22(5) of Article II of the North Carolina Constitution reads as rewritten:
(f) DecliningtoreservefundstotheEmergencySavingsReserveFund,providing for the expenditure of funds from the Emergency Savings Reserve Fund, or both, as provided in Section 2 of Article V-A of this Constitution and containing no other matter, shall be read three times in each house before it becomes law and shall be signed by the presiding officers of both houses." SECTION 2.
(f) DecliningtoreservefundstotheEmergencySavingsReserveFund,providing for the expenditure of funds from the Emergency Savings Reserve Fund, or both, as provided in Section 2 of Article V-A of this Constitution and containing no other matter, shall be read three times in each house before it becomes law and shall be signed bythe presiding officers of both houses." SECTION 2.
Ballots, votingsystems, or both may be used in accordance with Chapter 163 of the General Statutes.
Ballots, votingsystems, or both maybe used in accordance with Chapter 163 of the General Statutes.
Page 2 DRS45397-MCxfy-160 General Assembly Of North Carolina Session 2021 "[ ] FOR [ ] AGAINST Constitutional amendment adding the Taxpayer Protection Act to the North Carolina Constitution that would limit the growth of State spending to inflation plus population growth, require yearly deposits in a Savings Reserve or Unfunded Liability Reserve, return excess revenue to taxpayers, and submit tax increases to a vote of the people." SECTION3.
Page 2 Senate Bill 717-First Edition General Assembly Of North Carolina Session 2021 "[ ] FOR [ ] AGAINST Constitutional amendment adding the Taxpayer Protection Act to the North Carolina Constitution that would limit the growth of State spending to inflation plus population growth, require yearly deposits in a Savings Reserve or Unfunded Liability Reserve, return excess revenue to taxpayers, and submit tax increases to a vote of the people." SECTION3.
DRS45397-MCxfy-160 Page 3
Senate Bill 717-First Edition Page 3
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How this bill changes current law

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AI-generated reading aid from the bill's amendatory text — verify against the official bill.

This bill proposes amendments to the North Carolina Constitution to implement taxpayer protections regarding state spending, revenue deposits, and tax increases.

  • Article V-A

    ARTICLE V-A TAXPAYER PROTECTIONS Section 1. Limit on growth of State spending. (1) Spending limit. Except as provided in subsection (2) of this section, the maximum annual percentage increase in allowed State fiscal year spending shall not exceed the average inflation growth for the prior three calendar years plus the average growth in State population for the prior three calendar years before the fiscal year start.

    Creates a new article establishing a spending limit based on inflation and population growth.

  • Article V-A

    (2) Exception. The General Assembly may vote to increase the spending limit established under this section for a fiscal year. An increase in the spending limit for a fiscal year shall be made by an act passed by two-thirds of all the members of each house.

    Allows the General Assembly to increase the spending limit with a two-thirds vote.

  • Article V-A

    Sec. 2. Uses of revenue collected in excess of spending limit. (1) Each budget enacted by the General Assembly shall include a transfer to the Savings Reserve of fifteen percent of each fiscal year's estimated growth in State tax revenues that are deposited in the General Fund, except that if that transfer would cause the balance of the Reserve to exceed fifteen percent of the amount appropriated from the General Fund, excluding General Fund receipts, for capital and operating expenses for the prior fiscal year, then the amount transferred pursuant to this subsection shall be reduced accordingly.

    Mandates transfers to a Savings Reserve from excess state tax revenues.

  • Article V-A

    (5) Any amount of revenue collected in excess of the spending limit established in Section 1 of this Article and the reserves established in this Section shall be returned equally to every individual who filed a return for the tax year prior to the start of the fiscal year. For this purpose, spouses filing a joint return count as one individual.

    Requires that any revenue collected above the spending limit be returned to taxpayers.

  • Article V

    (1) Power of taxation. The power of taxation shall be exercised in a just and equitable manner, for public purposes only, and shall never be surrendered, suspended, or contracted away. No law shall be enacted to impose or increase any tax, or to allow the counties, cities, or towns to do so, unless approved by a majority of the qualified voters of the jurisdiction to which the tax or increase pertains. → (1) Power of taxation. The power of taxation shall be exercised in a just and equitable manner, for public purposes only, and shall never be surrendered, suspended, or contracted away. No law shall be enacted to impose or increase any tax, or to allow the counties, cities, or towns to do so, unless approved by a majority of the qualified voters of the jurisdiction to which the tax or increase pertains.

    Clarifies the requirement for voter approval of tax increases.

  • Article II

    (5) Other exceptions. Every bill: (e) Increasing the fiscal year spending limit established under Section 1 of Article V-A of this Constitution and containing no other matter;

    Adds an exception for bills that increase the fiscal year spending limit from the spending limit constraints.

Action History

  1. Passed 1st Reading

  2. Ref To Com On Rules and Operations of the Senate

  3. Filed

Sponsors

Sponsorship breakdown

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2 sponsors · 20 co-sponsors · 157 not signed on

Sponsors (2)

Co-sponsors (20)

Not signed on (157)

157 members have not signed on to this bill.

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"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Subjects

taxation elections
Cross-referencing the record. Reading this bill against every other bill in the corpus by meaning, not keywords. Only the first open is slow. It’s instant for you after this. Matching · Ranking · Engrossing

Frequently asked questions

Who sponsors SB 717?
SB 717 is sponsored by Newton, Warren Daniel (Republican), Bill Rabon (Republican), Lisa S. Barnes (Republican), Danny Earl Britt, Jr. (Republican), Kevin Corbin (Republican), David W. Craven, Jr. (Republican), Edwards, Carl Ford (Republican), Amy S. Galey (Republican), Harrington, Ralph Hise (Republican), Brent Jackson (Republican), Steve Jarvis (Republican), Krawiec, Michael A. Lazzara (Republican), Michael V. Lee (Republican), Tom McInnis (Republican), Perry, Norman W. Sanderson (Republican), Todd Johnson (Republican), and W. Ted Alexander (Republican).
What is the current status of SB 717?
This bill died with 2021-2022 Session. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track SB 717?
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