GUILFORD COUNTY SALES TAX DISTRIBUTION MODS.

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View NCGA Bill Details(link is external)2025-2026 Session
House Bill 305 (Local) Filed Wednesday, March 5, 2025
AN ACT TO PROMOTE FAIRNESS IN SALES TAX DISTRIBUTIONS FOR MUNICIPALITIES IN GUILFORD COUNTY BY ALLOWING MUNICIPALITIES THAT DO NOT LEVY AD VALOREM TAXES TO RECEIVE A PERCENTAGE OF LOCAL GOVERNMENT SALES AND USE TAX DISTRIBUTIONS.
Intro. by Blust.

Status: Re-ref Com On Rules, Calendar, and Operations of the House (House action) (May 7 2025)
H 305

Bill Summaries:

  • Summary date: Apr 29 2025 - View Summary

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

    Changes the title of defined term net proceeds to allocated share. Expands the types of taxes referenced in per capita distribution to include net proceeds of taxes collected under Articles 40 and 42 of GS Chapter 105. Expands the types of allocated shares of net proceeds that may be allocated to a qualifying municipality to include those taxes collected under Articles 39, 40, and 42 of GS Chapter 105. Requires any qualifying municipality intending to collect an allocated share under the act in 2025 to adopt a resolution indicating its intent to do so by no later than June 30, 2025. Requires a qualifying municipality intending to collect an allocated share to adopt a resolution as described during the month of April in all other years. Specifies that an adopted resolution is effective for net proceeds distributed beginning on and after the fiscal year following the succeeding fiscal after the adoption of the resolution. Directs that if Guilford County (County) chooses the per capita distribution method, then any resolution is effective until a resolution adopted by the County’s Board of Commissioners becomes effective. Provides for discontinuation, as specified, of the distributions under the act if either the municipality no longer meets the criteria of a "qualifying municipality" or a resolution by the County choosing the per capita distribution method becomes effective. Sets forth a four-pronged method of distribution for the Secretary of Revenue (Secretary) to employ when calculating and distributing the net proceeds of the taxes specified under the act. Directs the Secretary to provide the information to assist with distributions made by the County and its municipalities to taxing districts. Removes provisions reducing the net proceeds of the tax distributed to the County and its municipalities by the amount of the net proceeds distributed to qualified municipalities under this act. Makes technical and conforming changes.


  • Summary date: Mar 5 2025 - View Summary

    Allows a qualifying municipality [a municipality in Guilford County that does not levy ad valorem taxes and does not receive a distribution under GS 105-472(b)(2) (distribution of tax proceeds from the local sales and use tax using the ad valorem distribution method] to receive distributions of net proceeds during in year in which the Guilford County Board of Commissioners (Board) chooses the ad valorem distribution method. Defines net proceeds as the produce of a qualifying municipality’s per capita distribution multiplied by 25%. In order to be effective, requires the council of the qualifying municipality to adopt a resolution indicating its intent to receive net proceeds in accordance with this act and deliver a certified copy of the resolution to the Secretary in Raleigh. The resolution remains effective until (1) the municipality no longer meets the criteria of a qualifying municipality, or (2) the Board choses the per capita distribution method, after which time the municipality must adopt and submit a new resolution. Reduces the net proceeds of the tax distributed to the County and its municipalities by the amount of the net proceeds distributed to qualified municipalities under this act. Specifies that ad valorem taxes levied by any service or fire district located within a qualifying municipality does not prohibit that municipality from receiving net proceeds under this act.