More sales tax options for NC counties get House support

May 16, 2019 GMT

RALEIGH, N.C. (AP) — All of North Carolina’s counties would have more choices on how to spend additional sales tax revenues that local voters approve in legislation advancing at the General Assembly.

The base sales tax rate in the state is 6.75%. Counties can collect more if voters agree in referendums. Ninety-four counties have power to raise the rate to 7.25%, while the other six can reach 7.5%. More than 40 counties have approved these higher taxes.

The measure approved overwhelmingly on Thursday keeps these maximum rates in place. But counties would have the option if voters agree to earmark up to a half-cent toward public education, for any “general purpose,” or for both. Current law limits sales tax increases for a “general purpose” to a quarter-cent.


The measure now goes to the Senate.