AN ACT TO GIVE COUNTIES ADDITIONAL FLEXIBILITY WITH REGARD TO THE LOCAL OPTION SALES AND USE TAX WITHOUT INCREASING THE EXISTING MAXIMUM TAX RATE.
Amends GS Chapter 105, Article 46 (now, the one-quarter cent or one-half cent county sales and use tax), as follows. Requires that taxes levied under the Article be approved in a referendum, as specified. Requires that the total local sales and use tax rate in the county, including a levy under this Article, does not exceed 2.5% or 2.75%, as specified. Requires the rate to be in an increment of .25%. Prohibits holding a referendum on the levy of taxes under the Article within one year from the date of the last preceding election for the same. Makes conforming changes. Restricts a county's use of the net proceeds of taxes levied under the Article to any public purpose and/or public education purposes, which must be indicated on the ballot question presented at the referendum as specified. Defines public education purposes to mean (1) public school capital outlay purposes or to retire any of the county's related indebtedness, (2) classroom teacher salary supplements, or (3) financial support of community colleges.
Enacts new GS 105-506.3 to require that taxes under GS Chapter 105, Article 43 (local government sales and use taxes for public transportation) only be levied when the total local sales and use tax rate in the county, including a levy under this article, does not exceed a specified limit (limit is identical to that in GS 105-537(a), described above).
Amends GS 105-164.3(4a) to amend the definition of combined general rate to mean the sum of: the State's general rate in GS 105-164.4(a); the sum of the rates of the local sales and use taxes authorized for every county in GS Chapter 105, Articles 39 & 40, and SL 1967-1096; and half of the maximum rate authorized by GS Chapter 105, Article 46.
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