LOCAL OPTION SALES TAX FLEXIBILITY.

View NCGA Bill Details2021
House Bill 704 (Public) Filed Tuesday, April 27, 2021
AN ACT TO GIVE COUNTIES ADDITIONAL FLEXIBILITY WITH REGARD TO THE LOCAL OPTION SALES AND USE TAX WITHOUT INCREASING THE EXISTING MAXIMUM TAX RATE.
Intro. by Howard, Moffitt, Warren, Setzer.

Status: Ref To Com On Rules and Operations of the Senate (Senate action) (May 12 2021)
H 704

Bill Summaries:

  • Summary date: May 6 2021 - More information

    House committee to the 1st edition makes the following changes. Further amends Article 46 of GS Chapter 105 (county sales and use tax), now the “One-Quarter Cent (1/4¢) or One-Half (1/2¢) County Sales and Use Tax Act.” Offers an alternative ballot question for voter approval to levy the authorized tax, providing for the county to use the net proceeds of the tax for any public purpose (alternatively to the county using the net proceeds for a specific public purpose or purposes chosen from the options listed in GS 153A-149). Makes conforming changes. Adds a new uncodified provision authorizing the Secretary of Revenue to retain the Department of Revenue's costs of collecting and administering the tax for the first two fiscal years beginning with 2021-22, of up to $300,000 from the gross proceeds as reimbursement. Provides for all other costs of collecting and administering the tax to be deducted pursuant to GS 105-472(a). Explicitly prohibits a county from levying a tax under the Article as amended prior to October 1, 2022.


  • Summary date: Apr 27 2021 - More information

    Amends Article 46 of GS Chapter 105 (county sales and use tax) to do the following: (1) renames the Article “One-Quarter Cent (1/4¢) or One-Half (1/2¢) County Sales and Use Tax Act”; (2) expressly requires a referendum to levy a county sales and use tax under this article; (3) permits counties to levy a sales and use tax so long as the tax is in 0.25% increments and does not result in a local sales and use tax that exceeds 2.5%, or 2.75% for certain counties with public transportation systems; (4) makes conforming changes to G.S. 105-537(c) (ballot question to levy county sales and use tax) and adds space to indicate reason for the tax to the language of the ballot question; and (5) limits the use of a county sales and use tax under this article to the purposes listed in GS 153A-149 (setting forth reasons for which counties can levy property taxes) and as indicated on the ballot question presented. Amends Part 1 of Article 43 of GS Chapter 105 (local government sales and use tax for transportation) to add GS 105-506.3 aligning the maximum county sales and use tax rate allowed under Article 43 of GS Chapter 105 with the maximum tax rate allowed under Article 46 of Chapter 105 as amended by this bill.
    Amends GS 105-164.3(37) to make conforming changes.


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