North CarolinaHB 5492025-2026 SessionHouseWALLET

AN ACT TO CLARIFY THE POWERS OF THE STATE AUDITOR AND TO MAKE OTHER CHANGES RELATED TO THE STATE AUDITOR.

Sponsored By: Brenden H. Jones (Republican), Keith Kidwell (Republican), Mitchell S. Setzer (Republican), John A. Torbett (Republican)

Became Law

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 0 benefits, 1 costs, 4 mixed.

Stronger debt collection and new 3% fee

Starting July 29, 2025, if you do not pay an eligible debt within 60 days after the Department of Revenue’s notice, the Department can seize and sell your property and garnish bank accounts to collect. A 3% collection fee is added to any amount it collects by force; this fee does not apply to child support debts. The Department must send net forced‑collection proceeds to the State’s General Fund within 60 days.

Notices, hearings, and payment plans before collection

Starting July 29, 2025, the State Auditor must send you written notice before any forced collection, and you have 30 days to ask for a hearing. The Auditor cannot send a debt to Revenue until the debt is finally decided; nonresidents appeal first in Wake County court. After a final decision, Revenue must send its own notice and let you pay in full or set up a payment plan; the Secretary can change or end a plan for listed reasons, with 30 days’ notice in some cases. Only debts the Auditor finds are eligible for forced collection. When your tax refund is used to pay a debt, the net amount must be credited to reduce what you owe.

Auditor gets broader powers and records access

Starting July 29, 2025, the State Auditor can investigate State agencies, agency staff, and any group that handles State or federal money. The Auditor can demand databases and digital records, use overdue‑tax debt information for audits, and still must keep tax return reviews confidential. The Auditor can inspect property and records bought with public funds, and social and medical service providers must give needed recipient records to check that payments were proper. If someone refuses access, a court can order compliance and award costs. The law also repeals one related statute subsection.

Auditor can skip state IT buying rules

Starting July 1, 2025, the State Auditor’s office is not required to use the usual statewide IT programs and contracts. The Auditor can choose in writing to join those programs or can buy IT services directly under its own authority.

Revenue Department can take non-tax duties

Effective December 1, 2025, the Department of Revenue can perform other non‑tax functions the legislature assigns, in addition to its normal tax work.

Sponsors & Cosponsors

Cosponsors

Jay Adams
Republican • House
Jake Johnson
Republican • House
Jeffrey C. McNeely
Republican • House
Bill Ward
Republican • House
David Willis
Republican • House
Matthew Winslow
Republican • House