North Carolina legislation · 2025-2026 Session
North Carolina H1164: NSF for Taxes Penalty Modification.
Status: In committee, May 4, 2026
What the bill says
An act to modify the penalty associated with insufficient funds for payment of taxes.
From the introduced text:
A BILL TO BE ENTITLED AN ACT TO MODIFY THE PENALTY ASSOCIATED WITH INSUFFICIENT FUNDS FOR PAYMENT OF TAXES. Whereas, current law imposes a penalty for insufficient funds tax payments equal to the greater of twenty-five dollars or ten percent of the total payment amount, which can result in excessively high penalties on large yearly property tax bills; and Whereas, these penalties can greatly exceed the actual administrative costs incurred by counties in processing returned payments, creating unnecessarily punitive outcomes for taxpayers; and Whereas, it is the intent of the General Assembly to ensure this penalty structure is fair to taxpayers and aligned with cost recovery for counties; Now, therefore, The General Assembly of North Carolina enacts: SECTION 1. G.S. 105-357(b) reads as rewritten: "(b) Acceptance of Checks and Electronic Payment. - The tax collector may accept checks and electronic payments, as defined in G.S. 147-86.20, in payment of taxes, as authorized by G.S. 159-32.1. Acceptance of a check or electronic payment is at the tax collector's own risk. A tax collector who accepts electronic payment of taxes may add a fee to each electronic payment transaction to offset the service charge the taxing unit pays for electronic payment service. A tax collector who accepts electronic payment or check in payment of taxes may issue the tax receipt immediately or …
Sponsors
- Rubin, Phil (D, 40) · primary sponsor
- Budd, Laura (D, 103) · primary sponsor
- Logan, Carolyn G. (D, 101) · primary sponsor
- Roberson, James (D, 39) · primary sponsor
- Brown, Kanika (D, 71)
- Clark, Tracy (D, 57)
- Cook, Amanda P. (D, 60)
- Dahle, Allison A. (D, 11)
- Greenfield, Julia (D, 100)
- Harrison, Pricey (D, 61)
- Price, Renée A. (D, 50)
Latest actions
- : Ref To Com On Rules, Calendar, and Operations of the House
- : Passed 1st Reading
- : Filed
Subjects: BUDGETING, REVENUE DEPT., Higher education-research funding., FINES & PENALTIES, TAX COLLECTION, PUBLIC, DEBTOR & CREDITOR, TAXATION
Common questions
- What is H1164?
- H1164 is a bill in the North Carolina Legislature (2025-2026 Session): NSF for Taxes Penalty Modification.
- What does H1164 do?
- In its own words: An act to modify the penalty associated with insufficient funds for payment of taxes.
- What is the status of H1164?
- In committee as of May 4, 2026. Latest action: Ref To Com On Rules, Calendar, and Operations of the House (May 4, 2026).
- Who sponsored H1164?
- Rubin, Phil (D, 40), with 10 co-sponsors.
- Where is the official record for H1164?
- On the North Carolina Legislature website: https://www.ncleg.gov/BillLookUp/2025/H1164
Source: official North Carolina record. Tracked by Delilah, AI for legislation across all 50 states and Congress.