About

North Carolina's Department of Revenue was created by the General Assembly in 1921, making it one of the first in the United States. That year, the legislature approved a comprehensive net income tax in response to growing dissatisfaction with the state’s tax structure and independent recommendations from two study groups. The Department of Revenue was created to administer, enforce, and collect the newly created income tax.

In May of 1921, the Department had 16 employees. By the end of the fiscal year, that number had grown to 30 and the Department had collected just over $3 million in income and inheritance taxes.