Bill > S96

This bill modifies the penalty for tax payments made with checks or electronic funds transfers that are returned due to insufficient funds or nonexistent accounts. Currently, the penalty is $25 or 10% of the check amount (whichever is greater), up to a maximum of $1,000. The bill changes this to a flat $35 penalty. The penalty will not apply if the tax collector determines that the drawer had sufficient funds in a state financial institution account but simply failed to draw the check or initiate the transfer by inadvertence. The new penalty will be added to and collected alongside the original tax amount. The bill will take effect on July 1, 2025, and will apply to tax payments presented on or after that date. This change provides a simpler, fixed penalty structure for insufficient funds tax payments, potentially making the consequence more predictable for taxpayers while still discouraging such payment errors.

https://www.ncleg.gov/BillLookUp/2025/S96