State Handbook of Economic, Demographic, and Fiscal Indicators North Carolina. by David Baer PUBLIC POLICY INSTITUTE AARP

Transcription

1 State Handbook of Economic, Demographic, and Fiscal Indicars 2003 North Carolina by David Baer PUBLIC POLICY INSTITUTE AARP

2 Introduction The State Handbook of Economic, Demographic, and Fiscal Indicars 2003 is an easy-use reference book for anyone in search of up--date information about state economic, demographic, and fiscal conditions. Policymakers, public officials, and policy analysts will find useful data on such pics as population, poverty rates, per capita state personal income, state and local revenues, expenditures, tax rates, and property tax relief programs. Gender and age comparisons are provided for some of the data. Throughout the book we used the most current data available. State and national comparisons distinguish this handbook from other reference books - as do the 10-year comparisons and average annual growth rates for a number of important indicars. This handbook facilitates state-by-state and state-national comparisons, which can serve a variety of purposes. For example, a state's tax burden can be compared with the national average or with that of other states in the region. Per capita state personal income, unemployment, and median household income can be used assess how residents in one state fare vis-à-vis those in another. The book is divided in three sections. The first, a state summary section, features a summary description of each state, the District of Columbia, and the entire United States. In addition, summaries of economic, demographic, and fiscal information for the Virgin Islands and Puer Rico are shown. Users interested in a particular state can go directly this section and find information that otherwise would have be assembled from a variety of sources and reference tables. Users will find statistics on several major economic indicars, such as state personal income, median household income, and employment, as well as on population and poverty, distribution of household income, revenues, expenditures, tax rates, and debt ratio measures. We have moved the miscellaneous tax rates information from the section on state and local general revenues the tax section. This allows all tax rate information appear in the same location for each of the state summaries. Moreover, we decided remove effective real property tax rates (reported by the D.C. Government) because those rates could not be verified. We also added personal income, general sales, and miscellaneous tax information for Puer Rico and the Virgin Islands. Furthermore, this book will now be available at for easy retrieval. 1

3 The property tax relief portion summarizes homestead exemptions and credits, circuit breakers, and tax deferral programs, all of which are defined in the source notes and explanations section at the end of the book. We did not include all of the state property tax rates, because they can vary within states, and because data on the varying rates are not easily available. Data on state and local general revenues and state and local general expenditures feature per capita and percentage of personal income figures, as well as average annual changes from Comparisons can be made between each state and the national average of the amounts spent on expenditure programs. State and local debt information is provided on a per capita basis and per $1,000 of personal income. The composition of short-term and long-term debt is also presented. The second section of the handbook provides selected state economic, demographic, and fiscal data in separate tables and maps. This presentation of the data makes it easy compare any or all states and the District of Columbia on such economic indicars as per capita income or gross state product. The tables provide state rankings for easy comparisons. Source notes and explanations can be found in the third section of the handbook, which describes data sources and defines appropriate concepts or terms. Most of the information in the handbook comes from the U.S. Bureau of the Census and from a telephone survey of state and local government offices, such as state legislative offices and state and local assessors offices. Additional sources include the U.S. Bureau of Economic Analysis, the U.S. Bureau of Labor Statistics, and the District of Columbia Government. As state and local economic conditions and demographic patterns change, policymakers may have adjust their policies on taxes and spending programs. These adjustments become more difficult when economic and demographic changes depart from hisrical trends. It is our belief that this publication will contribute more informed public policy decisions by identifying significant economic, demographic, and fiscal changes. 2

4 Economic Indicars Average Annual Change NC US NC US NC US Per Capita Income... $17,784 $20,023 $27,514 $30, % 4.3% Median Household Income... $26,853 $30,126 $38,162 $42, % 3.4% Gross State Product (in millions)... $147,473 $5,895,430 $275,615 $10,137, % 5.6% Poverty Rate % 14.2% 12.5% 11.7% n/a n/a Full and Part-Time Positions (in thousands) 3, ,664 4, , % 1.9% Employed Persons (in thousands)*... 3, ,492 3, , % 1.4% Unemployment Rate* % 7.5% 6.7% 5.8% n/a n/a *Employed persons and the unemployment rate data apply 1992 and Sources: U.S. Bureau of the Census, U.S. Bureau of Economic Analysis, and the U.S. Bureau of Labor Statistics 2000 Population Under Age 18 6% 4% Males 26% 7% 7% Females 23% Ages Ages Ages 75 and Over 64% 63% Population Poverty Rate Population and Poverty Percentage Change NC NC NC US NC US Total Population... 6,628,637 8,049, % 13.2% 12.3% 12.4% Males... 3,214,290 3,942, % 13.9% 10.8% 11.2% Under Age ,312 1,006, % 13.7% 15.9% 16.4% Ages ,080,270 2,547, % 13.8% 9.0% 9.6% Ages , , % 4.6% 7.9% 6.6% Ages 75 and Over , , % 32.1% 10.7% 7.5% Females... 3,414,347 4,106, % 12.5% 13.7% 13.5% Under Age , , % 13.6% 16.3% 16.7% Ages ,137,877 2,568, % 12.6% 12.2% 12.6% Ages , , % -0.8% 12.6% 10.1% Ages 75 and Over , , % 23.3% 20.3% 13.9% 3

5 Percent Distribution of Households by Age of Householder and Income, 1999 Less than $10,000 $10,000 $14,999 $15,000 $24,999 $25,000 $34,999 $35,000 $49,999 $50,000 $74,999 $75,000 $99,999 $100,000 or more All Households Age of Householder Under 25 years % 10.8% 22.2% 17.2% 16.3% 9.5% 2.3% 1.2% 100% years % 4.7% 14.0% 17.2% 21.4% 22.7% 7.8% 5.4% 100% years % 4.0% 11.0% 13.3% 19.4% 23.8% 11.3% 11.2% 100% years % 3.8% 9.7% 11.4% 17.1% 22.7% 13.2% 15.5% 100% years % 5.8% 12.3% 12.8% 16.8% 19.5% 9.9% 12.6% 100% years % 10.6% 18.5% 14.9% 16.0% 13.2% 5.2% 6.3% 100% 75 years and over % 14.8% 20.3% 12.5% 11.0% 8.4% 3.3% 4.4% 100% North Carolina (all ages) 10.5% 6.4% 13.8% 13.9% 17.7% 19.4% 8.9% 9.4% 100% United States (all ages). 9.5% 6.3% 12.8% 12.8% 16.5% 19.5% 10.2% 12.3% 100% Percent of Households by Household Income Bracket, 1999 Percent of Households 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% Less than $10,000 $10,000 $14,999 $15,000 $24,999 $25,000 $34,999 $35,000 $49,999 $50,000 $74,999 $75,000 $99,999 $100,000 or more North Carolina United States 4

6 State and Local General Revenues, FY 2000 North Carolina Average Annual Revenue Change General Revenues Per Capita Percent of Personal Income (millions) NC US NC US NC US Total General Revenues... $41,131 $5,110 $5, % 19.8% 8.2% 6.1% Own Sources... $32,080 $3,985 $4, % 16.1% 7.5% 5.8% Taxes... $21,440 $2,664 $3, % 11.2% 6.8% 5.7% Property Taxes... $4,607 $572 $ % 3.2% 7.0% 4.8% General Sales Taxes... $4,520 $562 $ % 2.8% 5.5% 5.9% Personal Income Taxes. $7,210 $896 $ % 2.7% 7.8% 7.2% Other Taxes... $5,103 $634 $ % 2.5% 6.5% 5.1% Charges/Miscellaneous... $10,640 $1,322 $1, % 4.8% 9.0% 6.0% Federal Aid... $9,051 $1,124 $1, % 3.8% 11.5% 7.9% 1990 General Revenue 2000 General Revenue Property Taxes General Sales Taxes Personal Income Taxes Other Taxes 24% 16% 13% 14% 22% 11% 11% Charges/Misc Federal Aid 15% 18% 26% 12% 18% 5

7 I. Personal Income Tax Rate Structure Single Married, Filing Jointly Taxable Income Rate Taxable Income Rate First $12, % First $21, % $12,750 - $60, % $21,250 - $100, % $60,000 - $120, % $100,000 - $200, % Over $120, % Over $200, % Public Pension Exemption* North Carolina state and local retirees and federal retirees who worked for five years or more as of August 12, 1989, receive a full pension exemption off their defined benefit plan. This benefit also applies the state s 401K and 457 plans if the retiree contributed the plan prior August 12, Other government retirees receive up a $4,000 exemption per taxpayer. Private Pension Exemption*... $2,000 exemption per taxpayer *Total private and public exemptions may not exceed $4,000 per taxpayer for those retirees who did not qualify for the full public pension exemption. Social Security Benefits... Full exemption Standard Deductions and Personal Exemptions Combined Under age $5,500 (single); $10,000 (married, filing jointly)* Age 65 or older... $6,250 (single); $11,200 (married, filing jointly, where both spouses are age 65 or older)* *Personal exemptions for these figures are for taxpayers whose federal adjusted gross income is less than $60,000 (single) or $100,000 (married, filing jointly). Personal exemptions are less for taxpayers with higher incomes. Local Income Taxes... None II. General Sales Tax Rates State % Combined state/local tax rates % 7.0%* *Only Mecklenburg County has a combined state/local tax rate of 7.0 percent all other counties have a combined state/local tax rate of 6.5 percent. Starting in 2003, the tal combined sales/local tax rate will range from 7.0 percent 7.5 percent. Only Franklin, Mecklenburg, and Lee counties will levy an extra local sales tax percentage point of 0.5 percent. Sources: AARP 2002 telephone survey of state legislative staff, state departments of revenue, state controllers offices, state assessors offices, and state treasury offices. 6

8 III. Miscellaneous Tax Rates Corporate income (highest marginal rate) % On all taxable income Gasoline (per gallon)... $0.221 Cigarette (per pack of 20)... $0.05 Beer (per gallon)... $0.532 IV. Real Property Tax Relief Programs Homestead Exemption or Credit Requirements Benefits Homeowners age 65 or older or disabled with disposable income below $18, Exempt on the first $20,000 of assessed value or 50% of the assessed value (whichever is greater) Disabled veterans... $38,000 assessed value Circuit Breaker... None Deferral Program... None V. Real Property Tax Limits, Caps, or Freezes Counties or cities are subject a property tax rate cap of $1.50 per $100 of appraised real property value. However, with voter approval, counties and cities may levy a higher property tax rate.. Sources: AARP 2002 telephone survey of state legislative staff, state departments of revenue, state controllers offices, state assessors offices, and state treasury offices. 7

9 State and Local General Expenditures, FY 2000 General Expenditures Average Annual Expenditure Change Percent of Personal Per Capita Income (millions) NC US NC US NC US State/Local Direct General Expends... $40,434 $5,023 $5, % 19.4% 8.0% 6.1% To State/Local Government... $40,434 $5,023 $5, % 19.3% 8.0% 6.1% Education*... $14,164 $1,760 $1, % 6.7% 6.5% 6.1% Public Welfare... $6,299 $783 $ % 3.0% 12.6% 8.1% Health and Hospitals... $5,536 $688 $ % 1.6% 9.3% 5.5% Highways... $2,637 $328 $ % 1.3% 5.7% 5.2% Public Safety*... $3,218 $400 $ % 1.8% 7.9% 6.4% Environment... $2,511 $312 $ % 1.2% 7.3% 5.1% Interest on General Debt... $1,259 $156 $ % 0.9% 7.4% 3.4% Other... $4,810 $598 $ % 2.8% 8.5% 6.2% To Federal Government... $0 $0 $14 0.0% 0.1% 0.0% 2.2% *Education includes higher and lower education; public safety includes police, fire, corrections, and protection and inspection. State and Local General Expenditures, FY 2000 (excluding payments federal government) 12% Education 3% 6% 8% 7% 34% Public Welfare Health and Hospitals Highways Public Safety Environment Interest on General Debt Other 14% 16% Total Debt Outstanding Long-term Debt Short-term Debt 2000 Debt Ratio Measures Per $1,000 Debt (billions) Per Capita of Personal Income Debt (billions) Percent of Total Debt (billions) Percent of Total North Carolina (State and Local)... $29.1 $3,617 $144 $ % $ % United States...$1,451.8 $5,159 $187 $1, % $ % 8