Senate committee substitute to the 1st edition makes the following changes.

Adds the new content and makes conforming changes to the numbering of the act’s sections. Also makes conforming changes to the act’s titles.

Repeals Section 2.3 of SL 2025-32, which allowed the Town of Mills River, notwithstanding GS 160D-601, as amended, to adopt the unified development ordinance initiated by the Town Council in October 2024. Makes any unified development ordinance adopted by Mills River between June 30, 2025, and July 1, 2026, null and void, without any force or effect.

Makes the following changes, applicable to Guilford County only. Amends GS 105-537, as amended, by changing the language that is to appear on the ballot for the levy of the 0.25% sales and use tax, so that it specifies that 70% is to be used for classroom teacher salary supplements, 18% for fire protection equipment and services, 8% for Guilford Technical Community College, and 4% for allowable expenses for qualifying municipalities (previously, uses were listed, but no amounts). Amends GS 105-538, concerning the administration, distribution, and use of taxes, as follows. Changes the term "adjusted distribution" to "adjusted per capita distribution." Changes allocated share to allocated proportional share, defined as an amount equal to the product of a qualifying municipality’s proportional percentage and the total municipal share. Adds and defines proportional percentage as a percentage calculated by dividing a qualifying municipality’s unreduced share by the total unreduced share of all qualifying municipalities. Adds and defines total municipal share as 4% of the total net proceeds under the Article. Adds and defines unreduced share as an amount equal to a qualifying municipality’s ad valorem distribution subtracted from its adjusted per capita distribution but only if the amount is positive. Removes the term "per capita distribution." Makes conforming changes. Changes the distribution of the proceeds of 1/4¢ county sales tax during any year in which the ad valorem method of distribution is in effect so that it is now 96% to Guilford County and, from the remaining 4%, an allocated proportional share to each qualifying municipality. Amends the allowable uses of the proceeds by the county, so that the amounts and priority order are as follows: (1) 73% for teacher salary supplements (defines teacher to include instructional support personnel); (2) 19% to the Guilford County Fire and Rescue council for equipment purchase or capital expenditures needed to provide services in the county, including any necessary expenses to administer these funds, and adds that the county may establish a custodial fund for the benefit and use of the Guilford Fire and Rescue Council; and (3) 8% to the Guilford Technical Community College for capital expenditures. For these funds, specifies that the county, local board of education, or community college must maintain funding for the listed items for the budget appropriation that encompasses the items if the budget of that entity has not appropriated funds specifically for the item during the previous ten years. Makes conforming changes. Applies to referenda held on or after the dates for which the Guilford County Board of Commissioners has adopted a resolution before, on, or after the date that this Part becomes effective.