Amends GS 105-164.13 to exclude from sales tax feminine hygiene products, as now defined under GS 105-164.3; excludes grooming and hygiene products, as defined. Further amends GS 105-164.13 to exclude from sales tax sales of children or adult diapers or incontinence underpads (replacing the existing exemption for sales of diapers or incontinence pads on prescription by an enrolled State Medicaid/health Choice provider for use by program beneficiaries when the provider is reimbursed by the State Medicaid program or a Medicaid MCO).

Repeals GS 105-164.13B(b), which requires the Secretary of Revenue (Secretary) to administer local sales and use taxes imposed on food as if they were imposed under Article 39, which authorizes counties to levy a 1 cent sales and use tax, applicable to local sales taxes on food imposed under specified state laws. Amends GS 105-467(a), which defines and limits the scope of the county sales and use tax that can be levied under Article 39, to eliminate from the tax's scope the sales price of food that is not otherwise exempt from state sales and use tax under GS 105-164.13B, and the sales prices of a bundled transaction that include food subject to local tax under the statute. Makes conforming changes to reflect the exemption enacted for food. 

Amends GS 105-164.3 to exclude only prepared food (was, food or prepared food) from the definition of amenity as it applies to state sales and use taxes imposed under Article 5. 

Applies to sales made on or after October 1, 2026.

Appropriates $1.6 million from the General Fund to the NC Association of Regional Councils of Government for 2026-27 to be equally allocated among regional councils and used for education on available tax relief.