H 1073

GENERAL ASSEMBLY OF NORTH CAROLINA
  SESSION 2025
 H  1
  HOUSE BILL 1073
 Short Title:   Fair Share for Public Schools Act.  (Public)
 Sponsors:      Representatives Buansi, Prather, Baker, and R. Pierce (Primary Sponsors).
  For a complete list of sponsors, refer to the North Carolina General Assembly web site.
 Referred to:   Rules, Calendar, and Operations of the House
  April 29, 2026
1A BILL TO BE ENTITLED
2 AN ACT TO IMPOSE A SEVEN PERCENT INCOME TAX ON INCOME THAT EXCEEDS
3     ONE MILLION DOLLARS AND TO DISTRIBUTE THOSE PROCEEDS TO THE
4     PUBLIC SCHOOL FUND.
5 The General Assembly of North Carolina enacts:
6SECTION 1. G.S. 105-153.7 reads as rewritten:
7 "§ 105-153.7. Individual income tax imposed.
8     (a)     Tax. – A tax is imposed for each taxable year on the North Carolina taxable income
9 of every individual. The tax shall be levied, collected, and paid annually. Except as otherwise
10 provided in subsection (a1) subsections (a1) and (a2) of this section, the tax is a percentage of
11 the taxpayer's North Carolina taxable income computed as follows:
12     …
13     (a2) Rate on High Income. – A tax is imposed for each taxable year on the North Carolina
14 taxable income of every individual that exceeds one million dollars ($1,000,000) at a rate of
15 seven percent (7%). The tax imposed under this subsection shall be levied, collected, and paid
16 annually. The rate reduction trigger under subsection (a1) of this section shall not apply to the
17 tax rate imposed under this subsection. Annually, the Secretary shall distribute the taxes collected
18 under this subsection, less the Department of Revenue's allowance for administrative expenses
19 associated therewith, to the State Public School Fund for allotment by the State Board of
20 Education, on behalf of the counties, to local school administrative units on a per pupil basis in
21 accordance with Article IX, Section 7(b) of the North Carolina Constitution. The Secretary may
22 retain the Department of Revenue's cost of collection, not to exceed one hundred thousand dollars
23 ($100,000) a year, as reimbursement to the Department.
24     …."
25SECTION 2. This act is effective for taxable years beginning on or after January 1,
26 2026.
  *H1073-v-1*