TEMP LOCAL SALES TAX CHANGES/BUNCOMBE CO.

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View NCGA Bill Details(link is external)2025-2026 Session
Senate Bill 131 (Local) Filed Friday, February 21, 2025
AN ACT TO TEMPORARILY MODIFY BUNCOMBE COUNTY'S USE OF ONE-HALF OF ARTICLE 39 LOCAL SALES AND USE TAX PROCEEDS TO INCLUDE BOTH SCHOOL CAPITAL OUTLAY AND SCHOOL OPERATING EXPENSES AND TO MAKE TECHNICAL CHANGES TO THE BUNCOMBE SCHOOL CAPITAL FUND COMMISSION.
Intro. by Moffitt, Mayfield, Daniel.
Status: Re-ref Com On Rules and Operations of the Senate (Senate action) (Apr 9 2025)

SOG comments (1):

Long title change

Submitted by iveybyrd on

Previous title was AN ACT TO AUTHORIZE BUNCOMBE COUNTY TO USE ARTICLE 39 LOCAL GOVERNMENT SALES AND USE TAX PROCEEDS FOR ANY PUBLIC PURPOSE.

Bill History:

S 131

Bill Summaries:

  • Bill S 131 (2025-2026)
    Summary date: Apr 9 2025 - View Summary

    Senate committee substitute to the 1st edition makes the following changes. Makes conforming changes to act's short and long titles. 

    Section 1.

    Provides that the net proceeds of Buncombe County’s local sales and use tax collected under Article 39 of Chapter 105 will be distributed to the county using the ad valorem method. Instead of authorizing Buncombe County to use the net proceeds of the local government sales and use tax revenue distributed to it under the act for any public purpose, now requires that it use 50% of those proceeds for school capital outlay purposes (defined) or to retire any indebtedness incurred by the county for these purposes, and for school operating expenses. Directs the School Capital Fund Commission for Buncombe County (Commission) to advise the county commissioners for school capital outlay purposes by considering the capital needs of both the Buncombe County School System and the Asheville City School System, prioritizing those needs, and recommending projects to be funded, with ultimate control of the use of the funds to be with the county commissioners. Requires the remaining 50% of the funds to be used for any public purpose. Makes clarifying and technical changes.   

    Section 2.

    Adds the following content.

    Amends SL 1983-134, as amended (creating the Commission) as follows. Removes the requirement that any other capital funds appropriated by Buncombe County estimated to cost more than $100,000 at any one location apply before those funds are apportioned among the Asheville City Board of Education and the Buncombe County Board of Education. Now requires that all funds in the Public School Capital Needs Fund be used to finance new public school construction, to finance public school improvement and renovation projects that exceed $100,000, or to retire any indebtedness incurred by the county for these purposes (was, Funds were to be used to finance new public school of any amount, construction, to finance public school improvement and renovation projects that $100,000, estimated to cost in excess of $100,000 at any one location, or to retire any indebtedness incurred by the county after July 1, 1983 for these purposes). Makes a technical change.

    Government, Tax
    UNCODIFIED, Buncombe
  • Bill S 131 (2025-2026)
    Summary date: Feb 21 2025 - View Summary

    Permits Buncombe County, notwithstanding any provision of law to the contrary, to use the net proceeds allocated to it by the Secretary of Revenue under Article 39 of GS Chapter 105 (the first half-cent of the local government sales and use tax) for any public purpose. Applies to net proceeds allocated to Buncombe County by the Secretary of Revenue under Article 39 of GS Chapter 105 that occur on or after July 1, 2025, and until June 30, 2027. 

    Government, Tax
    UNCODIFIED, Buncombe
View: All Summaries for Bill