Senate committee substitute to the 3rd edition makes the following changes.

Changes the act’s long title.

Makes a clarifying change in Section 1. Also provides that Section 1 is effective when it becomes law and expires for net proceeds distributed beginning on or after the date of the levy of a tax by Guilford County approved in a referendum authorized under Article 46 of GS Chapter 105, as amended by Section 2 of this act. Reenacts this section if the Guilford County Board of Commissioners repeals the tax levied under Article 46 of GS Chapter 105, as amended by Section 2 of this act, for net proceeds distributed beginning on or after the date of the repeal. Requires the Guilford County Board of Commissioners to notify the Revisor of Statutes if it either levies or repeals the tax under Article 46 of GS Chapter 105, as amended by Section 2 of this act.

Section 2

Adds the following new content, applicable to Guilford County only.

Amends GS 105-537 to require a tax levied under Article 46 (One‑Quarter Cent (1/4¢) County Sales and Use Tax) to be approved in a referendum. Amends the ballot language by specifying that tax is to be used solely for classroom teacher salary supplements, fire protection equipment and services, for Guilford Technical Community College, and to be used by municipalities for any public purpose. Makes additional clarifying changes.

Amends GS 105-538 as follows. Adds and defines the following terms: (1) adjusted distribution (net proceeds of the tax collected under Articles 39, 40, and 42 of GS Chapter 105 distributable to a municipality as calculated using the per capita distribution method multiplied by 25%); (2) ad valorem distribution (net proceeds of the tax collected under Articles 39, 40, and 42 of GS Chapter 105 and distributable to a municipality as calculated using the ad valorem distribution method); (3) allocated share (amount equal to a qualifying municipality's ad valorem distribution subtracted from its adjusted distribution but only if the amount is positive; (4) per capita distribution (the net proceeds of the tax collected under Articles 39, 40, and 42 of GS Chapter 105 and distributable to a municipality as calculated using the per capita distribution method); and (5) qualifying municipality (municipality located in Guilford County that has an adjusted distribution greater than its ad valorem distribution). Requires the Secretary of Revenue, during any year where the ad valorem method of distribution is in effect in the taxing county, to calculate and distribute, on a monthly basis, the net proceeds of the tax collected under Article 46 under the specified formula. Requires qualifying municipalities (except Summerfield, which has its own requirements), each fiscal year, to use the net proceeds of a tax distributed to it under Article 46 only for any public purpose. Requires the county, each fiscal year, to use the net proceeds of a tax distributed to it under Article 46 for the items and in the amounts and priority order as set forth in the statute, for the Guilford County Fire and Rescue Council, Guilford Technical Community College, and for classroom teacher salary supplements. Requires the county to use the net proceeds of a tax distributed to it under Article 46 to supplement and not to supplant or replace existing funds or other resources for the items listed to at least maintain funding for the items listed at a level that meets the average level of funding provided for that item during the previous 10 years.

Applies to referenda held on or after the date the section becomes law for which the Guilford County Board of Commissioners has adopted a resolution prior to, on, or after the effective date of this section.