A new Tax Foundation report, released with support from the NC Chamber, shows that local government revenues in North Carolina have increased substantially over the past decade. The analysis details real growth in local property and sales tax receipts across the state and provides important context for ongoing discussions about local revenue, growth, and tax policy.

From 2013 to 2023, total county revenues in North Carolina grew by more than 35 percent. This growth was largely driven by sales and use taxes, which increased by nearly 80 percent over the same period. Property tax revenues also rose, increasing by approximately 15 percent. Even after adjusting for inflation, the analysis shows revenue growth at both the state and local levels is robust.

“As significant contributors to local tax bases, it’s important for the business community to understand how local property taxes and sales tax receipts have changed as North Carolina has grown,” said NC Chamber President and CEO Gary Salamido. “Examining trends over time helps ensure that state and local tax structures remain aligned with economic growth rather than becoming a headwind for competitiveness.”

Strengthening North Carolina’s Tax Climate

A balanced and predictable tax climate is central to North Carolina’s competitiveness, helping businesses invest, grow, and support communities across the state. Prior to 2013, North Carolina ranked among the least competitive tax climates in the nation—44th overall, according to the Tax Foundation. Since then, a series of Chamber-supported tax reforms have reduced individual and corporate income tax rates and aligned the state’s tax code with core principles of sound tax policy: competitiveness, fairness, efficiency, simplicity, and certainty.

These reforms have delivered measurable results. In 2021, North Carolina cracked the top 10 in the Tax Foundation’s annual State Business Tax Climate Index for the first time. Additional Tax Foundation research has shown that North Carolina businesses benefit from some of the lowest effective tax rates in the country.

Together, these reforms have helped create a competitive, growth-oriented environment that has helped fuel economic growth across North Carolina, strengthening local tax bases and contributing to the revenue trends outlined in this report.

Remaining Barriers to Competitiveness

While the data underscores the strength of local revenues, the NC Chamber remains focused on addressing taxes that directly impact business competitiveness. The most concerning property-related tax for employers is the franchise tax, a duplicative and burdensome levy that continues to hinder North Carolina businesses. Despite recent reforms, the franchise tax remains complex and onerous, and North Carolina must abolish it to maintain its competitive edge.

The NC Chamber will continue to lead efforts to fully eliminate the franchise tax and advance policies that promote a stable, predictable tax climate—one that supports economic growth while allowing communities across North Carolina to thrive.