Bill > H305

This bill modifies sales tax distribution rules specifically for Guilford County, introducing several key provisions. It allows municipalities in Guilford County that do not levy ad valorem (property) taxes to receive a portion of local sales tax proceeds, calculated as 25% of their per capita distribution. The bill also changes the referendum language for a quarter-cent sales tax, expanding the potential uses of the tax proceeds to include classroom teacher salary supplements, fire protection equipment and services, funding for Guilford Technical Community College, and general municipal purposes. For qualifying municipalities, the bill establishes a process where they must adopt a resolution to receive their allocated share, with specific timelines and conditions for receiving and potentially discontinuing these distributions. Additionally, the bill ensures that taxing districts and the City of Greensboro are "held harmless" and will continue to receive their normal distribution amounts, even with the new municipal allocation method. The legislation mandates specific uses for the sales tax proceeds by the county, prioritizing fire protection equipment (20% or $5 million), Guilford Technical Community College capital expenses (10% or $2.5 million), and the remainder for classroom teacher salary supplements. The bill is specific to Guilford County and will be effective upon becoming law.

Budget and Finance, Government Affairs

https://www.ncleg.gov/BillLookUp/2025/H305