House committee substitute to the 1st edition makes the following changes.
Eliminates proposed Article 43A, GS Chapter 105, authorizing a .5% county sales and use tax for public education purposes. Makes conforming deletion of the proposed changes to GS 105-506.
Modifies and adds to the proposed changes to GS Chapter 105, Article 46 (now, the one-quarter cent or one-half cent county sales and use tax), as follows. 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. Now 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. Makes conforming changes.
Bill Summaries: H667 LOCAL OPTION SALES TAX FLEXIBILITY.
Bill H 667 (2019-2020)Summary date: May 15 2019 - View Summary
Bill H 667 (2019-2020)Summary date: Apr 9 2019 - View Summary
Enacts new GS Chapter VIII, Subchapter 105, Article 43A (County Sales and Use Tax for Public Education). Authorizes counties to levy a tax, at a rate of up to .5%, under the new article to finance public education needs. Directs that taxes levied under the new article must be approved in an advisory referendum, as specified. Restricts a referendum to an increase in increment of .25%, and limits the total local sales and use tax rate to 2.5% or 2.75%, as specified. Authorizes the county board of commissioners, upon a successful referendum, to levy a local sales and use tax at the specified rate by resolution and after 10 days' public notice. Requires taxes under the new Article to be administered in accordance with GS Chapter 105, Article 39 (Local Government Sales and Use Tax), and GS 105-468.1. Directs counties to only use the proceeds of a tax levied under this article for specified public education purposes, including public school capital outlay, teacher salary supplements, and financial support of community colleges.
Amends GS 105-506 to make conforming changes.
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 new GS Chapter 105, subchapter 105, Article 43A, described above).
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 a specified limit (limit is identical to that in new GS Chapter 105, subchapter 105, Article 43A, described above). Requires the rate to be in an increment of .25%. Makes conforming changes.
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.