State Rep. Laura Budd has introduced a bill intended to modernize penalty procedures for tax payments returned due to insufficient funds or non-existent accounts, according to the North Carolina State House.
Designated as HB 1164 and filed April 30 during the 2025 regular session, the bill’s official short title is ‘NSF for Taxes Penalty Modification.’
The summary below is based on the actual bill text and includes clarifying interpretation of its key terms.
The measure overhauls penalties for tax payments—either by check or electronic funds transfer—that are dishonored due to insufficient funds or a non-existent account. The plan replaces the current flat $25 or 10% penalty with a stepped structure, not exceeding $1,000: For the first two offenses within five years, the penalty stands at $25 plus 1% of the tax owed; later violations are fined $50 plus 2%. The bill sets aside $15,000 in one-time General Fund resources for the 2026-27 fiscal year to fund educational outreach through the Department of Revenue. Its provisions take effect once enacted, applying to tax payments from that day forward.
Phil Rubin, among the bill’s four co-sponsors, introduced the highest number of bills—38—in the 2025 regular session.
Legislation in North Carolina requires navigating a detailed process to reach law status. A lawmaker offers a bill, which then proceeds to committee consideration. Bills must be read three separate times in both legislative chambers. If amendments are added by one body after passage in the other, the differing versions must be reconciled and agreed upon before sending the final measure to the governor, who has 10 days (or 30, if the Assembly is out of session) to either sign, veto, or let the proposal become law without a signature.
Additional information on measures and legislation is available here.
Budd holds a BA from Ohio University, conferred in 1999, and a JD from Wake Forest University School of Law, awarded in 2002.
A Democrat, Budd was elected to the North Carolina State House in 2023 for the 103rd House district, succeeding Rachel Hunt.
| Authors | Bill Number | Date Filed | Title |
|---|---|---|---|
| Laura Budd, Carolyn G. Logan, James Roberson, and Phil Rubin | HB 1164 | 04/30/2026 | NSF for Taxes Penalty Modification. |
| Laura Budd | HB 1165 | 04/30/2026 | Hygiene Products Protections/Sales Tax. |
| Laura Budd, Carolyn G. Logan, and Maria Cervania | HB 1180 | 04/30/2026 | Data Center Amendments. |
| Laura Budd, Phil Rubin, and Ya Liu | HB 1206 | 04/30/2026 | Pregnant Workers Fairness Act/Funds. |
| Laura Budd and Cynthia Ball | HB 1207 | 04/30/2026 | Keeping NC Open for Business. |
| Laura Budd | HB 1208 | 04/30/2026 | Community Safety Risk Protection Act. |
| Laura Budd, Cynthia Ball, Lindsey Prather, and Rodney D. Pierce | HB 1209 | 04/30/2026 | Strengthen Ed by Embedded New Teacher Support. |
| Laura Budd | HB 1210 | 04/30/2026 | Firearm & Conflict De-escalation Training Act. |
| Laura Budd, Julia Greenfield, Marcia Morey, and Phil Rubin | HB 1060 | 04/27/2026 | AG Investigations/Certain ICE & CBP Incidents. |
| Laura Budd, Carla D. Cunningham, Carolyn G. Logan, and Nasif Majeed | HB 903 | 04/10/2025 | Highway and Road Safety Act. |
| Laura Budd, Dean Arp, Dudley Greene, and Mark Brody | HB 924 | 04/10/2025 | Board for Gen. Contractors/Crim. Referrals. |
| Laura Budd, Carson Smith, and Terry M. Brown Jr. | HB 953 | 04/10/2025 | Study Committee on ADA/APD/PAC Pay. |
| Laura Budd and Maria Cervania | HB 982 | 04/10/2025 | NC Highway Safety Act of 2025. |
| Laura Budd, Carolyn G. Logan, Frances Jackson, PhD, and Tracy Clark | HB 989 | 04/10/2025 | Build Safer Communities and Schools Act. |
| Laura Budd, Frank Iler, and Ya Liu | HB 993 | 04/10/2025 | HOA Organization and Reporting Act. |
| Laura Budd, Beth Helfrich, Brandon Lofton, and Mary Belk | HB 840 | 04/09/2025 | Reward Schools for Student Growth. |
| Laura Budd and Sarah Stevens | HB 866 | 04/09/2025 | Automatic Ord/Equitable Distribution Claim. |
| Laura Budd, Donny Lambeth, Ray Pickett, and Zack Hawkins | HB 578 | 03/31/2025 | The Jason Flatt Act of North Carolina. |
| Laura Budd, Bryan Cohn, Charles Smith, and Terry M. Brown Jr. | HB 499 | 03/24/2025 | NC Paid Family Leave Insurance Act. |
| Laura Budd and Tricia Ann Cotham | HB 504 | 03/24/2025 | Pilot Co-Responder Police Program. |
| Laura Budd, Brian Biggs, and Ray Pickett | HB 475 | 03/20/2025 | State ID Cards for High School Students. |
| Laura Budd, Deb Butler, Julia Greenfield, and Pricey Harrison | HB 459 | 03/19/2025 | Income Tax Rate Reduction Trigger Mods. |
| Laura Budd, Brian Biggs, Sarah Stevens, and Ya Liu | HB 431 | 03/18/2025 | Preventing Deed Fraud. |
| Laura Budd | HB 320 | 03/06/2025 | Town of Pineville/Reserve Police. |
| Laura Budd | HB 290 | 03/04/2025 | Funds for Pineville Pedestrian Beacon. |
| Laura Budd, A. Reece Pyrtle, Jr., Carolyn G. Logan, and Carson Smith | HB 199 | 02/25/2025 | Nonconsensual Booting and Towing Reform. |