North Carolina is about four weeks behind last year in sending out taxpayer refunds in a deliberate policy to manage state government's fiscal crisis.
"We're backed up on that about four weeks," Ken Lay, the state revenue secretary, said in an interview.
Lay said he has heard from numerous taxpayers expressing concern about their tax refunds — some of them from people who have lost their jobs and are in dire financial straits, Rob Christensen reports.
"Some people have asked: Have you stopped writing checks?’" Lay said. "We haven't. Since the beginning of the year we've sent out refunds totaling more than $900 million. We continue to send out refund checks every week."
"What we are doing is managing the distribution of the refunds very carefully because we are keeping our eye on the budget and on the cash flow," Lay said.
Lay said the average refund, for people eligible for a refund, is $542.
The typical turn around time — from the time the tax form is submitted until the arrival of the refund – is six to 12 weeks for paper tax returns and two to four weeks for tax forms filed electronically.
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Re: State tax refunds lag, on purpose
Owe the state money? And do that to my self intentionally? No thanks...I'll wait for the state to pay me before I ever intentionally set my self up for a tax liability at the end of the year. Although I do think it is rediculous that the state is holding on to the money so long. Isn't there a limit before they have to start paying interest on the tax payer money they are holding? I know they won't pay it but 30 day's past due and I'm adding a late fee and penalties and will start accruing compound interest on the full balance until my tax refund is paid to me in full.